As competition in the global marketplace increases the importance of
quality and in particular Total Quality Management (TQM) has become a
key management issue within most major corporations. More and more
companies are applying the principles of TQM and the topic is well
publicized in many BOOKS and papers. The procurement function plays a
key role within any company, as they are the link between the business
and its suppliers. In essence the buyers interpret the requirements of
the business and convert this into the materials required to satisfy
the needs of the customer.
These are the reasons for implementing TQM:
* Increasing competitive pressure
* The changing perceptions of the customer
* The hidden waste under the present methods
* To change the perceptions of managers and people
* To release the potential of people
* Survival
The benefits of TQM can be summarized as the following:
* A greatly improved product or service
* A major decrease in wasted resources
* A massive leap in productivity
* The best opportunity to increase profit
* A long-term increase in market share
* A sustained competitive advantage
* A real release of the potential of people
* A motivated workforce
* The elimination of much hassle and frustration involved in
management