Total Quality Management (TQM) is a customer-centered management approach to continuously improve every aspect of a company. TQM works towards long-term success by focusing on elements such as proper communication between managers, employees, and customers while making fact-based decisions to ensure all business functions work together. This system of management is important because it makes sure that all processes align to satisfy customers by delivering a consistent product. It also helps to master internal operations and surpass baselines in efficiency and productivity.
The leading principal of TQM is keeping customers as the focus of all business efforts. Customers determine the demand for products, so it’s critical that products exceed their expectations. In order to implement this TQM principle, make sure that research is conducted to understand the target market’s needs. At Power Assemblies, we educate our distributors by providing training videos, brochures, drawings, and so much more that helps explain the nature of benefits that our products provide. This indicates the problems that we can solve with the help of our innovative power solutions. We also practice TQM by always providing exceptional customer service and post-sales support. Making each action customer-driven will lead to strong relationships with our distributors, promote positive word of mouth, and increase market share for our partners.
The Importance of Inventory Rotation
Inventory rotation, otherwise known as inventory turnover, is a system of measuring how many inventory cycles a company goes through in a given time period. This TQM process helps to keep inventory at healthy levels, especially in times like today where lead times and stock issues are at an all-time high. Inventory rotation can be calculated by dividing the cost of goods sold by the average amount of inventory on hand. Knowing the inventory rotation rate can be used to make sure that products are not being overproduced, therefore crowding warehouse space. Calculating the rate will also ensure that inventory doesn’t get too low. If inventory runs lower than demand, you will notice elongating lead times resulting in back-ordered products. In order to combat these issues, we’ve designed a simple 4-question survey for our distributors to determine which products are most important to their market. This will allow us to keep the products you need on hand at all times in order to further ensure efficiency, reliability, and cost effectiveness. Click here to take the survey!
TQM calls for maximum efficiency in all aspects of a business, including inventory retention. However, years of forecasting are needed in order to properly predict how much inventory is needed on hand year after year. Sometimes businesses end the year with a surplus of inventory resulting in high monthly storage fees, especially if you rent a space to store your products. You can work to counter these fees by offering bulk sale discounts in order to sell inventory surplus and strengthen relationships with customers. Remarketing is also a great way to use advertising to get extra products off your shelves and into the hands of the consumer.
How To Ensure Quality Control
Quality control is a TQM process where products are inspected to make sure that they meet performance standards and are free of deformities. The Power Assemblies team practices this business tactic every single day that we come to work in order to make sure that our company is consistently delivering high-quality goods – every single time. Creating low amounts of defective products decreases the need to re-make goods and will lower the cost of production. This will provide customers with the lowest prices possible. Manufacturing processes that consistently produce high-quality goods will cut back on waste and be easier on the environment. Practicing quality control helps businesses to best use their resources and increase reliability with their suppliers.
Using TQM To Adapt Business Strategy
For many companies, the end of the year tends to be slow. This is an excellent time to reflect on the year so far and pinpoint places to improve next year. Before the year’s end, Power Assemblies will take time to manage our inventory and perfect our schedule for upcoming projects. Every year we reflect on the products, practices, and partners that have made us successful throughout the year and create new goals to further improve our processes next year. The principles of TQM hold us accountable as we continuously strive to raise the bar on our innovative power solutions and provide our distributors with the best experience possible. Please take a moment to fill out our 4-question product survey so we can keep stock readily available for you and your customers to provide you with what you need faster than ever before.