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8 Elements of Total Quality Management

8 Elements of Total Quality Management

Customer-Centric

Customer-centric quality management is the concept that quality should be defined for the customer by what the customer needs and expect . This approach subscribes to the idea that customer satisfaction is the primary determinant of a company’s quality, which is inevitably linked to its long-term success. At the same time, this viewpoint necessitates a thorough understanding of a customer, an approach to continuous communication, and permanent improvement.

Customer feedback at Big Tech Inc. Big Tech Inc.’s service delivery is centered around the approach to customer-centric quality management. The company has developed advanced tools for tracking customer experiences. Big Tech Inc. surveys customers regularly, speaking with them, and monitoring their opinions about the company on social media. However, the company does not merely collect customer feedback – it deeply analyzes it to prioritize customers’ needs and wishes above anything else. For instance, the analysis of 2021 customer feedback revealed that there was a 20% demand growth in customers needing a quick service answer. The company developed an AI-based chat solution to address the issue and reduce the time it takes to respond to service requests by 40% . As a result, the customer satisfaction rate grew times and reached 95%.

Customer input in product development at Custom Co. Custom Co. is a manufacturing company that develops custom-made furniture solutions. Just like Big Tech Inc., this company relies on the principles of customer-centric quality management. However, in its case, the approach is also visible in its product development process. The company invites its customers to design the furniture themselves on the website . Such a model ensures that the product meets the customers’ whims and preferences. At the same time, these experiences are collected and recorded thoroughly in a custom-made digital database, linking them explicitly to all modifications made in the manufacturing process . The company’s approach ensures the customers return 30% than the industry rate.

A perfect example of the customer-centric quality management approach is the Retail Giant Company. The strategy implies that the company’s employees are encouraged and trained to solve customers’ problems independently in real-time. All staff is empowered through conflict resolution and customer communication training, allowing them to decide how they will ensure customer satisfaction. For instance, if a customer is dissatisfied with a particular purchase, staff can replace the product on the spot or offer a generous discount . The implemented strategy has not only fostered customer loyalty but also made the workplace environment more dynamic.

Everyone Participates

At Tech Solutions, a leading software development firm, “everyone participates” is reflected in the company’s approach of involving all employees into its quality management process. From coders to service reps, every person is trained in the basics of quality management and encouraged to suggest small innovations. Over the past year, the company has introduced 200 small changes to its software, all focusing on users’ experience and purposes of the software. For instance, one of the company’s service reps came out with an idea for a new feature that would allow customers to reset their passwords on their own. The new feature was claimed to be effective in reducing calls to the support department by 15%.

At Auto Innovators Inc., a manufacturer of cars, the total quality management system is also based on cross-functional team working. These teams include members from the engineering, manufacturing, and sales units and work together on specific problems. For example, one of the company’s projects was focused on the noise level of the cars. The cross-functional team consisting of engineers, sales, and quality service members worked on this issue and finally came up with the solution of changing the insolation materials for cars. As a result, within six months, the number of complaints on the noise level of the cars has decreased by over 40%.

An example of company-wide training at Health Solutions, a pharmaceutical company, has proved to be successful for TQM implementation. Company-wide training sessions are dedicated to making all employees understand what each one of them can contribute to TQM. These training programs are held each quarter and cover the issues of regulatory compliance, technologies, solving the staff’s problems, and customer satisfaction. As a result, compliance issues have decreased by 25%, and up to now, trial drugs are accepted for sale in 85% of cases, as compared to 65% before the training started.

A real-time feedback system is implemented at Consumer Goods Ltd. Employees may report any type of a quality problem the very same day, with the help of a new system that provides them with a mobile app. Defects are also identified this way, as workers may send a report of a defect immediately. Each message is quickly reviewed by the local team and measures to be taken are discussed. As a result, time delays for detecting defects have been minimized and the number of product recalls has decreased by over 30% over the last year.

Process-Centric

Streamlining Production at Global Manufacturing Ltd.

One of the most significant changes that Global Manufacturing Ltd.has made in its production process is the shift to the process-centric approach in quality management. Instead of focusing on the quality of a specific product, the company has found it more efficient to optimize the production process as a whole . Thus, the leaders have ensured that every stage of the assembly line has been optimized for the highest efficiency and quality. To monitor performance in real-time, the company has installed automatic monitoring systems. For instance, the system has helped eliminate 50% of machine downtime due to the quick repair of any flaws signaled by the system’s monitoring. Every such adjustment has led to a noticeable improvement in the delivered product quality and a 20% decrease in waste.

Client Onboarding at FinServ Co.

Besides, the process of client onboarding at FinServ Co. has been reimagined as process-centric, starting to optimize client interaction quality from the very beginning. To that end, the company has redesigned the entire journey to be as maximally scrutinized and compliant as possible . To help the client be aware of the status of their onboarding, the company has developed a digital onboarding portal. Whenever any phase is the onboarding is successfully finished, it is updated in real-time on the portal. Since the implementation of the strategy, the company’s satisfaction rates from the clients have increased by 30%, and onboarding is now usually finished in three days instead of two weeks.

Quality Control in Software Development at AppDev Innovate

Finally, AppDev Innovate uses quality management in their software development lifecycle, applying a process-centric approach. By automatically implementing code reviews and continuous integration/continuous deployment practices, every line of code has been tested before entering production. As a result, new assignments by developers are completed faster, and the number of critical bugs in the final product decreased by 30% this year.

Supply Chain Management at EcoGoods

One more example is process-centric supply chain management at EcoGoods. Subcontracting from hiring to the raw materials provider provides rigorous evaluation of quality at every step of the process prone to it. In addition, EcoGoods, a retailer of eco-friendly goods, used blockchain technology for transparency, saving 25% of previously occasional supply chain failures.

Integrating Systems

AeroTech Engineering

AeroTech Engineering has integrated its design, production, and quality control systems to develop a unified framework to manage quality at all stages of aircraft production. A significant feature of the process in place is using enterprise resource planning system to connect simulation data from initial design to the final inspection of the assembled plane. As a result, the quality issues are identified and resolved 20% faster than the industry average. This approach also ensures that the planes are safer and more reliable than the average aircraft.

Unified Customer Feedback System at RetailCo

RetailCo is a national retail store chain that has implemented an integrated system that combines customer feedback data with sales and inventory numbers. The feedback mechanism allows the company to determine which of its products or not, as well as keep track of customer satisfaction rates. As a result of implementing the system, the company’s product satisfaction rates have increased by 35%, and its inventory costs have decreased by over 15%. Product satisfaction and fewer unsold goods indicate strongly that the integrated system has increased both operational efficiency and customer satisfaction .

Health Management at Wellness Hospital

Wellness Hospital has established an integrated system that connects patient data with treatment plans and feedback mechanisms. As a result, healthcare providers that use the system know everything there is to know about the care they provide each customer and develop a more personalized treatment plan. Using the system has decreased the number of medical errors and increased the patient recovery rate by 25%.

FoodCorp

FoodCorp has implemented a supply chain that includes acquisition, production, and distribution of goods under a single quality management system. Using advanced research technologies, the company is tracking the quality of the products and to ensure that the optimal product finds its way to the supermarket shelves. The change in the supply chain has resulted in 30% less perishables and 20% quicker delivery times, resulting in both customer satisfaction and reduced costs of production.

Strategic and Systems Approach

Long-Term Planning in GreenTech Solutions

GreenTech Solutions employs a strategic and systems approach that focuses on alignment and daily implementation of the long-term environmental goals with operation. GT incorporated a system, under which all their operations are evaluated in environmentally-related impact terms. They decreased their carbon footprint by 40% over the period of five years due to operation on renewable energy sources and resource efficiency in the process of production . The strategy has become a crucial part of the brand, as GT is now associated with the environmentally-friendly business they are attracting, customers, and investors alike.

OmniConsumer Products Customer Relationship Management

OmniConsumer employs a systems and strategic approach in the management of customer relationship over various channel platforms. A distinctive part of the customer services CRM is an interaction of processed customer feedback with the data on the sales and customer response to marketing through the use of inbuilt software solutions . OCP successfully predicted customers’ needs and delivered them tailored information in the past three years, which positively impacted customer retention, which rate increased by 50% in the same period.

Risk Management by SafeInvest

Risk management strategy of SafeInvest is based on the strategic and systems approach, where all the risk functions are aligned with a long-term business operation objective. The corporate structure of SI fully integrates the risk management system, that allows track and respond to potential financial, operation, as well as reputation threats in all units of the business. SI avoided financial loss of approximately $2 mln from risk response in the last fiscal year.

Quality Assurance Method at Global Foods

Global Foods has developed a strategic and systems approach to the quality assurance across a large number of supplier chains. First, the company invested in developing a joint system of tracking the quality of products, which links suppliers to the sites of production to the network of distribution. Then they used it to manage the production on a real-time basis . A joint strategy with the suppliers of focusing on their quality as well as production scale integration assured the outcome of quality on the massive level. Over 95% of customers filled out product quality satisfaction surveys.

Keep Improvement

TechAdvance is a major consumer electronics company that supports the idea of Kaizen in the product development process. The company’s approach is to keep improving as to succeed in the toughening market where new standards are born rapidly. Every new smartphone model is created based on customer feedback and the results of batteries’ work in previous models. For example, the most subsequent model turned out to have longer battery life, lasting over 48 hours of use. The idea came from the customers’ answers in the surveys regarding the dissatisfaction with the current battery life. The new batteries made the customers 25% more satisfied with their user experience.

AutoBuild Corp is the company that involves the principle of improvement in its military machines’ production. Each end of the quarter, the production data were assessed, and the deficiencies of the production line were found. Last year, an innovative manufacturing platform supporting an AI system was introduced that enhanced the assembly line work which 20%. It allowed enhancing the speed of producing vehicles without any impact on safety, while without it, the production time was 15% longer and 10% more costly.

HealthCare Plus also supports the idea of Kaizen in its industry’s development, as the employees’ training and development were continually vital in the healthcare sector. The innovative idea involved an app that created a custom training plan for the employee regarding their database of the employee’s skills and the advancements in their best practices. It significantly impacted the quality of patient care, as the recovery times of the patients were shortened by 30%. The clinical error rate was also reduced by 30%.

RetailWorld, as a retail store, constantly works on the enhancement of quality of service. As to do that, the customer service which is renewed every single day has to be analyzed every day. Best customer service ideas and strategies were formed, and the employees were trained based on the feedback received from the served customers’ samples. The training should be seen as the basis for the new training program that was launched last year, and it had a tremendous impact. The customer service increased to 40%, and the complains’ resolving times shortened significantly.

Fact-Based Decision-Making

Dynamic Motors — Data-Driven Production Adjustments Dynamic Motors utilizes a robust analytics system to adjust produce at their automotive production plants. They thoroughly collect data on machine effectiveness, product defects, and assembly line speeds, using this knowledge to make an informed decision. A recent review has shown that if the conveyor belt is slowed down by 5% in their assemblies section, where finishing was being placed, a 20% reduction in product defects could be observed. As there were no does in the production line, the average quality of the product was raised, effectively reducing the reworking cost by 30%.

FlavorRight Foods — Market Analysis for Developing Products Decision FlavorRight Foods apply a big load of market research and human consumer behavior data to make decisions about the products it wants to introduce to the market. As they were analyzing data about different demographics they realized that an overwhelming majority of people prefer to have complementary food products low on sugar and high in protein . That allowed the company to develop a new diet snack that significantly outperformed its forecasted sales figures by 40%.

TechWare Solutions — Adjusting Inventories TechWare Solutions do not bring fact-based decision-making to make adjuster to the optimal inventory. The company tends to analyze the sales number of any given type of product, seasonal trends of their selling and thereby adjust its holdings to ensure the company is not having a stockout or holding excessive stock. The most recent example of that would be an observation on historical sales data that showed a 15% increase in product’s demand before the holiday season. As a result of the decision to increase the inventory, TechWare Solutions experienced a 20% rise in sales and a 10% decrease in inventory leftover.

ServicePlus — Reducing Churn Factors ServicePlus, a telecommunications service provider, realizes its customer data to reduce the churn factor. A recent analysis showed that the customers at higher risk of turnover were the ones either overusing their service and calling the hotline or the ones underusing them. As an attempt to resolve this issues, the company has installed a loyalty cards program that had successfully decreased the customer churn by 18% in six months.

Effective Communication

Communication is a crucial element of total quality management, which has been taken to a new level by EcoBuild Constructions with a transparent reporting system. The reporting system is available to all stakeholders and includes monthly dashboards showing progress against quality targets, incident reports, and customer feedback scores . EcoBuild have also reported a 25% improvement in cross-departmental collaboration, meaning regular-quality problems are now dealt with more proactively.

Bright Solutions, a provider of IT support services, reported having established feedback loops with their customers through regular surveys. Following every service interaction, customers are encouraged to take part in a quick survey and rate the service. The data is gathered and reviewed on a weekly basis, with insights communicated back to the team . The company has reported a rise in customer satisfaction of 35% over the past year through the implementation of customer suggestions.

HealthCare Innovators tackled the problem of poor internal communication by organizing quarterly quality training sessions to all employees. The training is interactive and includes discussions of real case studies and areas for improvement within the teams. HealthCare Innovators also uses an internal app, where employees can post questions and advise each other on quality-related issues . The training sessions and a higher engagement from staff have decreased clinical errors by 22%.

AgriFood Corp. holds bi-annual quality conferences with all of its suppliers to ensure that they are all on board with the company’s quality standards and practices. At the conferences, industry trends and challenges and best practices are also discussed. This direct communication has improved supplier relations and compliance with AgriFood Corp.’s quality standards by 20%.

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