Total quality management in manufacturing and service industries

TQM

Total Quality Management Survey

Manufacturing

Customer service and delivery of quality products is essential to the survival of any organization, including a manufacturing organization (John, 2003). To customers working with a manufacturing company such as Picosecond Pulse Labs, Inc., satisfaction and a guarantee of the utmost quality is critical to their relationship. If an organization is not able to provide any type of guarantee of quality as to the product they manufacture and distribute, then the company is not like to succeed, as there are dozens of competitors eager to jump on any and all opportunities presented to them. In the manufacturing company analyzed, all work completed for distribution is customer driven. This means the organization works to deliver electronics products that are specific to a niche market. In this type of market, there is less competition than other markets, including for example, soda pop manufacturers.

As there are only a few other organizations that manufacture the types of products created at Picosecond, to establish success and acquire an image of the best of the bets, the organization must continually develop tools that allow for customer-driven quality. These tools require the company to look at its processes and systems, including those involved in hiring and distribution of personnel. In a customer-driven organization as this, appropriate training for all members of the organization is critical to promoting a successful and competitive market (John, 2003).

These tools may include ISO-9000 certification standards, where the organization must meet stringent standards of quality to guarantee the products they manufacture and distribute to their customers (John, 2003). Other tools that could be used in this sector include solid leadership. A good leader in the manufacturing industry is one that is knowledgeable about the types of products he or she produces, and also aware of the types of products and quality services competitors use. Without this knowledge a manufacturing company is not likely to succeed in the global market.

Service Industry

Many organizations fall into the category of "service" entities. One of the more common examples are enterprises that offer loans including banking organizations. A perfect example of a service oriented industry is Lending Tree. This company operates primarily online, one way it caters to the needs of its global clientele. The organization provides "lending and realty services" in a way that allows consumers to make smart decisions (Lending Tree, 2007).

Because there are so many competitors these days in the online service market, especially with regard to realty and lending services, Lending Tree must ensure it provides customers the best possible service. If this feat is achieved, odds are strong customers will refer others to the organization, increasing its visibility and reputation in the industry. Lending Tree uniquely positions itself in the industry as a "leading online" institution, something many other organizations in traditional services exchange industries do not presently offer (Lending Tree, 2007). To remain popular and well-known, the organization is working to create solid connections and networks involving their consumers and other banks that can lend appropriate amounts of money or provide realty services exchanges to all involved.

The leadership at lending tree is unique, in that the organization promotes horizontal vs. top-down leadership. What this means is the service organization does not have to rely on traditional models of leadership, including those popular in the manufacturing industry. Rather, the company works to exchange information freely so consumers are "empowered" per the company, to make the best choice possible.

The organization achieves this by connecting interested consumers with realtors or other agents capable of assisting with the buying and selling of a home; the organization also supports what they refer to as "a unique marketplace concept" or one that allows consumers interested in working with the organization to select services from large entities whether regional, national or local (Lending Tree, LLC). This concept is one that provides value to customers; hence customers are more likely to utilize the services offered because they believe the organization has their best interests in mind.

Other companies are starting to adopt this model, including some car insurance and life insurance companies, which allow customers to select from a diverse market so they do not feel they have few choices when it comes to financing any need they may have during the course of their life (John, 2003). As the global market continues to diversify the way companies including service companies do business, more and more companies will work to create their own "unique" marketing concepts, those that are customer driven and provide high value.

Matrices

While at first the public sector's view on TQM seems cumbersome, realistically most entities, including product or manufacturing, service and public entities, share common insights when the topic of total quality management is approached. These similarities or a comparison of quality initiatives are provided in Table 1.1.

Table 1.1 Keys to Success in TQM

Manufacturing

Service

Government

Commitment to customer-driven services that follow national and international standards, enabling an organization to stand apart from the crowd. Interest in focusing on customers served, including internal and external.

Customer-driven services that cater to the needs of a diverse client base will make or break an organization in this industry.

A principles key to successful implementation of initiatives. Initiatives must focus on the people the government serves including internal and external customers.

Often manufacturing companies follow similar policies with regard to product standards on creation and distribution whether locally or internationally.

In the service industry, most providers face much in the way of competition; therefore, to capture the attention of probably customers, the company must discover the "unique" needs of its client.

While many associate government procedures as stringent and unforgiving, it is not impossible to cut through red tape to deliver optimal quality services internally and externally.