Management Techniques on Productivity

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1) Explain the effects of using various quality management techniques on productivity.

Total quality management (TQM) is a group of techniques that emphasizes teamwork, measurement, and continuous improvement that organizations implement, all with the end goal of customer satisfaction. When companies implement TQM, the effects are improved performance, more harmonious culture and working relationships, better products and services which all end up in customer satisfaction. When customers are satisfied they keep on coming back and even refer the companies to others. This results in more productivity and profitability.

The various quality management approaches have a significant impact on operations and relationships within the people in the organization which contributes to their long-term viability. The main characteristics of quality management have set a total quality management direction and strategy in organizations. Among the benefits of TQM are customer satisfaction, employee satisfaction, positive social and environmental impacts; and increased productivity and profitability for the company.

One of the quality management techniques that have been used by companies is the Just-in-time (JIT) method of inventory system which reduces defects to zero by speeding up production flow and synchronizing between production and market and also between the various productive and logistic phases. Among the major benefits in production system performance that are achieved through the use of JIT are in terms of mix flexibility, working-capital productivity and also for both direct and clerical labor.

Robinson Brick Co., in Englewood, Colo. began experimenting with quality principles in the 1950s. In 1992, it started building work team and started hiring workers who believed in TQM. Robinson's goals was to cut waste, increase sales margins, and boost production. He says that his focus is on quality and believes that productivity will follow. TQM emphasizes on employee empowerment and teamwork and it is very important for a labor-intensive company like Robinson. Robinson's also believe that quality programs can ...