Operations management as a source of competitive advantage

As previously stated the strengths of TQM allow a complete investigation in areas that are not running efficiently and effectively. By providing a method of improvement such as this ensures that a higher quality service is being given, a workforce is on the same page and focused at all levels, and customer satisfaction is met. In the end this would allow the WFRMC to be more profitable. The weakness behind TQM would be similar to any field and that is cost. What any company would discover is that there is an initial increase in cost, whether it is for a service or for production. This cost would consist of training personal and cost of finding feedback methods of the business quality.

TQM the process for managing quality must be a continuous way of life, a philosophy of perpetual improvement in everything that companies do. TQM is an integrated organizational

Quality management is an act that monitor all activities that needed to maintain and sustain high quality output, continuous improvement of process and product to a desire level of excellence in order to create customer satisfaction (Flynn, Schroeder, & Sakakibara, 1994, p. 342). Nowadays, increase in globalization and international trade had led to the increase of competition in the global market. The increase of competition had forced companies to focus on the concept of quality in their business and discover that effective quality management can increase their competitive advantage in the global market (Anderson, Rungtusanatham, & Schroeder, 1994).

The total quality management (TQM) incorporates quality into all the activities of the organization through an ongoing process. This control makes sure that there is a continuous improvement in all the activities and there will not be any chances for defects. TQM ensures safety and helps improve customer satisfaction (Daft, 2014).

It is a continuous improvement in all aspects of an organization as a process and not as a short-term goal. TQM focuses on customer (patient) satisfaction, continuous improvement, teamwork, process management, systemization, organization culture and structure, and lastly commitment from management and supportive leadership. (Talib, F., Rahman, Z., & Azam, M. (2011).

Furthermore, this particular topic helps the business world in so many ways. Competitiveness, Strategy, and Productivity are the three important characteristics of any business. Competitiveness in this chapter refers to the effectiveness of an organization in the marketplace similar to the other operations that offer familiar products or services. Strategy is known to denote a particular plan for achieving

Adapted with the permission of Michael E. Porter from Competitive Advantage: Creating and Sustaining Superior

First, it is essential to decompose the concept “Total Quality Management” to clearly understand its goal: “Total” goes for the fact that quality involves everyone and all activities in the company, “Quality” means conformance to Requirements “ Meeting Customer Requirements” and “Management” because Quality can and must be managed. 2 The TQM model is based on the hypothesis that a company’s survival is only possible if a competitive level is achieved and maintained for each of the so called «6 dimensions of quality»: • • • • • • Product & service quality On-time delivery Fair price Employees satisfaction Product & process safety Environment conservation.

First of all, the ineffective TQM model, Total quality management are having problems both theoretically and practically (Mosadeghrad, 2013). Some complementary management theories must be integrated with TQM to refine and develop it further to achieve competitive advantage. An intensive knowledge of sociology, psychology and change management helps introduce, institutionalize and manage the TQM change successfully. There is a need for an empirically sound and comprehensive model of TQM to assist managers

Hypotheses 1: There is a positive and significant relationship between competitive strategy and TQM practices.

Focus on customer: When using TQM it is important to always remember that the level of quality will be determined by the customers

Total Quality Management (TQM) is an improvement tool that is widely used in many companies. It consists of many aspects including Managing people as well as business processes in order to maintain customer satisfaction. With TQM, Businesses starts to do the right thing from the start and to ensure zero error. Therefore, it is important to learn the principle of TQM and how it acts in organizations with its advantages and disadvantages.

Competitive advantage is explained by Mahoney and Pandian (1992) as the function of industry analysis, organizational governance and the firm’s effects in the form of resource advantages and strategies. In order for a firm to be competitive it must adapt to the volatile business environment and through strategic management decisions establish a competitive advantage that will ultimately produce superior performance relative to its competitors (Akimova 2000).

The fact that globalization has expanded the market for organizations means that TQM is more important than ever before. Customer demands are higher and if a company does not create products and services that meet their expectations they can easily access the same or similar products and services from another company. If managers do not implement TQM into their company procedure then they will fail to meet the high standards of customers all over the world and eventually lose their business. When it comes to implementing TQM, it’s the mangers responsibility to create an environment where people can work together to improve their work processes. If the ownership or senior management does not buy into this concept you will never succeed. Many people in leadership roles are either too set in their ways or closed minded to the necessary change needed to really improve the way things get done. You have to buy into the concept that there is always a better way to do something. By tapping into all the knowledge and experience your employees possess, you develop solutions that not only improve your execution, you provide everyone with a sense of accomplishment.. These "process improvement teams" give employees a chance to help steer the future direction

Brown, Bessant, and Lamming (2013) indicate that “Operations management is concerned with those activities that enable an organization to transform a range of basic inputs into outputs for the customer” (p. 4). Operations management is not about limited functions within a company, but rather, it is about expanding its activities in numerous other areas and sectors (e.g. company-wide) in order to meet the needs of the company, customers, shareholders and stakeholders.