What Are the Advantages and Disadvantages of TQM?

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Total quality management (TQM) is advantageous because it provides companies with short-term and long-term benefits that improve product quality, productivity and customer relations. On the other hand, TQM can cause job loss, excessive costs during production and a decrease in creativity.

TQM implements many ideas and methods to generate better products, customer loyalty and sales. According to the American Society for Quality, TQM works when a company has total employee involvement, a customer-focused perspective and a systematic approach to achieving the goal and makes continuous improvements based on fact-based data.

Since TQM is designed to deliver long-term achievements, this process may not be right for a company looking for instant results. One long-term advantage of TQM is increased customer loyalty and trust. As the products become better, production costs decrease and mistakes are less likely to occur. TQM enhances employee satisfaction because there is a streamlined focus on product development using a process to eliminate unnecessary steps.

With every advantage comes a disadvantage that may make TQM unfeasible for other businesses. For example, the focus on product effectiveness and improvement may interfere with the creation of innovative products. As production become simpler due to technology, employees could lose their jobs, thus lowering morale in the community.