To improve customer satisfaction, greater emphasis is placed on quality in logistics and supply chain management. The most common approach to quality management is Total Quality Management (TQM). TQM seeks to improve quality and performance in order to meet or exceed the expectations of the customer.
Figure 8 shows the essential components of a TQM approach to quality.
Figure 8: Key Components of TQM
Along with the key components, a number of key principles should be followed to ensure TQM is successful as shown in Figure 9:
Figure 9: The Key Principles of TQM
- Executive Management – Top management should drive the TQM initiative and create an environment that ensures its success.
- Training – Employees should receive regular training on the methods and concepts of quality.
- Customer Focus – Improvements in quality should be made in the interests of the customer.
- Decision Making – Quality decisions should be made based on the results of data collection.
- Methodology and Tools – Use of appropriate methodology and tools ensures that non-conformances are consistently identified, measured and responded to.
- Continuous Improvement – Companies should continuously work towards improving manufacturing and quality procedures.
- Company Culture – The culture of the company should encourage cross-functional team-working to improve quality.
- Employee Involvement – Quality must not be seen as simply the responsibility of Quality departments and all employees must be empowered to identify and address quality related problems.