
SMEs and
Total Quality Management
The concept of Total Quality Management (TQM) has gained prominence
during the last two decades both in the developed and developing world.
Although the practices of TQM have been prevalent over a century, such
practices were not recognised as such in management strategy and literature.
The acceptance and practice of this concept has spread to almost every
forward looking enterprise today. The
concept cuts across manufacturing as well as service sector firms.
It is believed, that in the competitive world of today those who do not
commit themselves to TQM will find it more and more difficult to meet their
customers' demands. Thus, TQM has become more than a way for a business to
improve the quality of their products and services but could become the key to
survival of the enterprise.
However, the concept and the practice have been slow in permeating
the SME sector, especially in the developing countries. There are a number of reasons for this slow acceptance.
One principal reason being that when one expounds TQM, this concept is
understood by small enterprises to be the prerogative of the larger companies.
This is especially true when the examples quoted of centres of
excellence, they are usually from large companies and conglomerates such as
Xerox, IBM, AT&T and others.
There is, however, growing evidence that SMEs in some sense are
better placed to adopt a quality management culture.
This is due to the premise that some of the ideal conditions that
facilitate TQM are already present in the make-up of most small firms, both in
the service and manufacturing sector. These
are, transparent and accessible management, visible leadership, easy
communication lines, intimate knowledge of the process, product and service,
close supplier/customer relationships, togetherness of the work-force both in
physical and social proximity and pride of workmanship of the skilled worker.
If you analyze the work environments of one product or a few
products' of service or manufacturing firms, one would notice that all or most
of these ideal conditions are present. It
is, therefore, only a step away from realising the potential of TQM, if there is
commitment from the owner manager to introduce a quality culture through the
introduction of the five basic ingredients of TQM. These are management commitment, customer focus, continuous
improvement, team work and cooperation.
It is obvious that such ingredients are much easier to achieve in a
single 'roofed' small company where all activities take place in close proximity
to one another. In such a
situation, management commitment can be more easily demonstrated, due to
personal presence of the owner with the contact he has on a daily basis with the
work group and in many instances the owner lives next door to the business
premises. External and internal
customer focus is also easy to come by, as the internal customers within the
firm are few and intimately known to one another and in the case of the external
customers, in many instances it is one customer or a small group of customers,
who are familiar with the small business, the owner, and the workforce.
Continuous improvement is facilitated as there is close rapport
with what the customer wants or improved which is discussed openly in the work
place between the owner and the client. Further,
the physical proximity of the manufacturing process, commencing from the raw
material stage to the final product prepared for despatch, familiarizes each
worker with the processes and most workers know each other's job.
Teamwork follows from this as they work as a team with many employees
playing multifunctional roles including the owner manager, without any status
barriers.
The question that can be posed is, why is the motivation not
present, or weak for SMEs to adopt TQM principles, despite the ease of adoption
and the likely advantages. The
answer obviously lies in the lack of awareness and being too busy with survival
procedures without realising that TQM could be the panacea for all ills.
Statistical analysis of life cycles of SMEs in many developing
countries show that the survival rate of SMEs especially in their early years
are low. There are many reasons
both internal and external, for such low survival rates. However, one rarely comes across among the 'armoury' of
interventions for SME development in the less developed countries, the need to
introduce efforts to inculcate the advantages that they would derive in
embracing TQM at the very beginning.
This obviously will have to begin with owner managers through a
process of awareness creation by demonstration rather than by top down lectures,
to imbue them with the motivation and acceptance of the concept, which is so
close to them.
(Source: Technonet Asia Newsletter)
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