Business
A businss is a legally recognized enterprise or organized activity that obtains, creates or manufactures products or services and then sells them to customers on a continuing basis. Running a business requires leadership and includes management of finances, personnel, procurement, manufacturing, marketing and sales. This is true for a large corporation, as well as a one-person operation.
If you are an entrepreneur, business owner or manager, you need to know how to run your organization effectively to expand or grow the business. The purpose of these lessons is to give you a start at improving your business skills.
After completing the lessons, you should be able to operate your business in a way that you will have greater profits, reduced costs, and a competitive advantage, such that you can become a champion in your field. If you have any questions,
Definitions of Basic Business Terms
If you are involved in business, there are various words and terms used in business that you should understand. The following list defines major business terms. The list is by no means comprehensive, but it gives a good background on what certain words mean in business. It is worthwhile to understand the terms used, when studying business.
Questions you may have include:
• What are the basic terms?
• What do they mean?
• How are they used?
Basic terms
A business is an enterprise or entity that provides products or services to customers. Business is doing commercially viable and profitable work. Commerce is buying and selling products or services.
A business: A legally recognized organization or organized effort that operates with the objective of earning a profit from the sale of goods or services
Alliance: Close association of groups or businesses
Business: The activity in which you participate in order to earn money (i.e. "I'm in the computer business.")
Client: A regular customer that receives your professional services
Commerce: The buying and selling of goods
Company: Usually considered a business that has employees.
Contract: A formal agreement to do work for pay
Consultant: A person hired to give advice to business management
Contractor: One who agrees to do perform a service or deliver a product for a fee
Customer: The person or company that purchases and pays for product or service; note that the customer may not be the user of the product; also note that some companies think in terms of internal and external customers
Delivery: When the product is delivered to the customer or the job is completed
e-Commerce: Buying and selling done over the Internet
Employee: A person working for a company
Enterprise: An industrious, systematic activity, especially when directed toward profit; A business organization
Firm: A commercial partnership of two or more people, especially when unincorporated
Internal customer: The person or department within a company that provides you or your area with money in exchange for delivery of products or services
Marketing: The commercial functions involved in transferring goods from producer to consumer
Product: Something produced; goods
Proposal: A formal document given to customer that outlines proposed work to be done by the business
ROI: Return-on-investment; how much money a business gets from a capital investment that is intended to improve profits
Service: Work done for others; changing the state of a product, which is then delivered; for example, cleaning a dirty floor results in "delivering" a clean floor to the customer
Supplier: The person or company that provides goods or services needed to do your job
User: The person or company that uses a purchased product or service; could also be called the consumer
Basic Steps in Starting a Business
by Ron Kurtus (3 October 2004)
A business is an organized activity to sell a product or service to various customers on a regular basis. To start a business enterprise, you first need a good idea and a plan of action. Then you must implement your plan by gaining financing, getting the product or service to sell, finding prospects, selling and making the exchange.
Questions you may have about this are:
• What is the criteria for being in business?
• How do you get a good idea?
• How do you implement your plan of action?
Criteria for a business
The criteria for being in business is that you provide a product and/or service on a regular basis to a number of customers.
Selling on regular basis
A person selling a car or other property is involved in a business activity, but since it is a one-time operation, it is not considered a business enterprise. If the selling is done on a fairly regular basis, it can then be classified as a business.
Selling to more than one person
With providing services in exchange for money, a person usually does it on a regular basis. For example, a boy who mows lawns during the summer in his neighborhood is in business. On the other hand, if the boy is mowing the lawn of only one neighbor, he is no longer in business. Instead, he has a job.
Idea
Every new business starts with a great idea. Usually, the entrepreneur is motivated by wanting to run his or her own business and making a lot of money. There may be other personal motivations such as self-expression or wanting to make a difference in society.
Typically, the entrepreneur hears about something in an area of interest and skill that triggers the idea of a product or service that would be in demand.
Henry Ford saw others making cars and felt he could do it better and cheaper. Steve Jobs saw some of the new personal computers and got the idea of making his own version of user-friendly computer. Michael Dell saw how personal computers were being made and thought it would be a good business to get into.
Plan of action
The next phase in starting a business is to develop a plan of action. In many cases--especially when substantial funding is required--a formal business plan is written. But there are many businesses that start with informal plans that may change as the situation requires.
Next the plan is implemented.
Funding
Some entrepreneurs get funding to begin their businesses from their own savings. Others may present their business plan to venture capitalists to get seed money.
Get product or service
The product may be purchased or built. The entrepreneur may make him- or herself or hire others to make the product.
The service may be done by the entrepreneur or people may be hired to perform the service.
Get prospects
Marketing efforts are required to find prospective buyers and make them aware that the product or service is available, as well as the benefits and advantages of the goods.
It is necessary to meet with the prospects to demonstrate the product and convince them to buy.
Make exchange
Once the customer is convinced and a price is negotiated, you make the exchange. You deliver the product or service and they pay for it.
Repeat process
Some of the profits will pay for more products and marketing efforts, resulting in more demonstrations and sales. The business is up and running.
Measuring Your Business
by Ron Kurtus (revised 9 August 2000)
To improve your business, you must be able to truly verify that improvement. Some companies have a large amount of business but yet show diminishing profits. Others have such a great profit margin that they are pricing themselves out of business. What is needed is a good means of measurement. As quality guru W. Edwards Deming once said, "What you measure, you improve."
When to measure
Measuring how your business is doing should be made both before and after any improvement program. Obviously, the exact same measurement method and conditions should be used in both cases.
Do not assume the present company performance metrics are valid. Often they are skewed or overlook not-so-obvious areas for improvement.
Broad metrics
First look at very broad metrics for your business, such as cost and customer satisfaction.
Cost
How much does your product cost you? This includes the cost to make or purchase the product plus sales, delivery, service and repair costs. These are hard figures that are caused by many factors that can be improved.
Often companies do not include the cost to service and repair their products in the overall cost. Of course your profit is what the customer pays less your overall cost.
Customer satisfaction
How satisfied is the customer with the product? Will the customer buy from you again? Does the customer refer your company or business to others, giving you word-of-mouth advertising?
This measurement is often a soft metric, depending on opinions and surveys. Often the truth is difficult to determine. The amount of advertising necessary to get in business is an indirect measure of customer satisfaction in many cases.
Ask your customers if they are happy with your products and services. Find out where customers heard about you. Keep track of how much business is repeat business, as opposed to new business.
Specific metrics
Within the broad metrics there are more specific metrics that can be taken. These will point to areas where improvements can be made.
Costs from suppliers
The cost of goods from suppliers should be measured. Comparison of the prices for goods versus key items should be made:
• Timeliness - do you deliver when promised?
• Turnaround time to deliver goods
• Reliability of supplier to deliver
• Reliability and quality of product
• Percentage of rejected or unacceptable product
Cost of workers
Workers are essentially internal suppliers. A similar list of metrics apply to them:
• Timeliness
• How fast do they work?
• How reliable is the worker?
• What is the quality of his product?
• How must time and material does he waste?
Cost of process
The same metrics that apply to your suppliers apply to your business with respect to your customers. Much of this has to do with your internal processes and how you run your business.
Organizing Your Business
by Ron Kurtus (revised 14 February 2000)
A first step in improving your business is to make sure it is well organized. It is surprising how many businesses have been careless about this step. Some such companies may be mildly successful, but they could be even more profitable if they paid attention to the basics of organization.
Questions you may have about this are:
Starting point
Whether you are starting a new company or improving an existing one, it is important to have a business mission, concept, and vision.
You need to define the purpose or mission of your business. Much of this has to do with the motivations of the leadership. Then you must have a business concept, model, or terrific idea of some product or service that will sell. Finally, in order to improve, you must have a vision or goal of where you want to end up.
Organization methods
Once you have established or re-defined the groundwork for your business, you can use various methods and standards to improve the operation and organization of your business.
ISO 9000 standards
A very good way to organize the way your business operates is by following the ISO 9000 standards. You do not necessarily have to become certified in ISO 9000, but you can still use the standards as a guide in how to effectively operate your business.
(Details are explained in later lessons in: Organize Your Business with ISO 9000.)
Re-engineering
Re-engineering has been a management fad in recent years. Unfortunately, it has been misapplied and used as a way to eliminate workers. A business or company that has been in existence for a while usually has an operation structure in place. It may be necessary to drastically alter that structure and re-organize and become more effective.
Benefits
Organizing is a form of planning. It has been shown that setting a good structure can make any organization more effective and efficient.
Good organization results in reducing losses due to duplicate work or unclear objectives. All personnel do better work, because they know what they should be doing and what their place is in the scheme of things.
A well-run company is in a stronger position in the competitive marketplace. Not only are profits higher, but repeat business is enhanced.
Showing posts with label posted by Librarian. 24/10/2009. Show all posts
Showing posts with label posted by Librarian. 24/10/2009. Show all posts
Saturday, October 24, 2009
Total Quality Management (TQM)
Total Quality Management (TQM)
Total Quality Management (TQM) is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. An important part of TQM is its a philosophy toward continually improving your business and products.
A number of quality initiatives have arrived since TQM started in the 1980s. The most recent is the Six Sigma program, which is quite similar to TQM. We follow the Kurtusian philosophy of TQM that was developed for the U.S. Air Force space programs.
There is a need for people who will champion the cause of improving the way business is done through effectively implementing TQM within a company. Your knowledge and skills in this area can help advance your career while improving your business. If you have any questions,
Basic Principles of Total Quality Management (TQM)
by Ron Kurtus (28 May 2001)
The basic principles for the Total Quality Management (TQM) philosophy of doing business are to satisfy the customer, satisfy the supplier, and continuously improve the business processes.
Questions you may have include:
• How do you satisfy the customer?
• Why should you satisfy the supplier?
• What is continuous improvement?
Satisfy the customer
The first and major TQM principle is to satisfy the customer--the person who pays for the product or service. Customers want to get their money's worth from a product or service they purchase.
Users
If the user of the product is different than the purchaser, then both the user and customer must be satisfied, although the person who pays gets priority.
Company philosophy
A company that seeks to satisfy the customer by providing them value for what they buy and the quality they expect will get more repeat business, referral business, and reduced complaints and service expenses.
Some top companies not only provide quality products, but they also give extra service to make their customers feel important and valued.
Internal customers
Within a company, a worker provides a product or service to his or her supervisors. If the person has any influence on the wages the worker receives, that person can be thought of as an internal customer. A worker should have the mind-set of satisfying internal customers in order to keep his or her job and to get a raise or promotion.
Chain of customers
Often in a company, there is a chain of customers, -each improving a product and passing it along until it is finally sold to the external customer. Each worker must not only seek to satisfy the immediate internal customer, but he or she must look up the chain to try to satisfy the ultimate customer.
Satisfy the supplier
A second TQM principle is to satisfy the supplier, which is the person or organization from whom you are purchasing goods or services.
External suppliers
A company must look to satisfy their external suppliers by providing them with clear instructions and requirements and then paying them fairly and on time.
It is only in the company's best interest that its suppliers provide it with quality goods or services, if the company hopes to provide quality goods or services to its external customers.
Internal suppliers
A supervisor must try to keep his or her workers happy and productive by providing good task instructions, the tools they need to do their job and good working conditions. The supervisor must also reward the workers with praise and good pay.
Get better work
The reason to do this is to get more productivity out of the workers, as well as to keep the good workers. An effective supervisor with a good team of workers will certainly satisfy his or her internal customers.
Empower workers
One area of satisfying the internal suppler is by empowering the workers. This means to allow them to make decisions on things that they can control. This not only takes the burden off the supervisor, but it also motivates these internal suppliers to do better work.
Continuous improvement
The third principle of TQM is continuous improvement. You can never be satisfied with the method used, because there always can be improvements. Certainly, the competition is improving, so it is very necessary to strive to keep ahead of the game.
Working smarter, not harder
Some companies have tried to improve by making employees work harder. This may be counter-productive, especially if the process itself is flawed. For example, trying to increase worker output on a defective machine may result in more defective parts.
Examining the source of problems and delays and then improving them is what is needed. Often the process has bottlenecks that are the real cause of the problem. These must be removed.
Worker suggestions
Workers are often a source of continuous improvements. They can provide suggestions on how to improve a process and eliminate waste or unnecessary work.
Quality methods
There are also many quality methods, such as just-in-time production, variability reduction, and poka-yoke that can improve processes and reduce waste.
Using TQM for a Competitive Advantage in Business
The Total Quality Management (TQM) philosophy of doing business emphasizes lowering costs by reducing waste, helping suppliers provide quality products and satisfying the customer with quality goods and services. Companies that can produce goods at lower costs than their competitors, while delivering quality products that satisfy their customers will have an advantage over those companies that do not duplicate those feats. Implementing TQM can help a company gain a competitive advantage in their business.
Questions you may have include:
• How can a company reduce costs?
• What does helping suppliers and workers do?
• How does customer satisfaction give an advantage?
Reducing costs
Achieving lower costs for getting or making products gives a company a great competitive advantage over their competition.
Getting products - case study
Wal-Mart has formed alliances with their suppliers, such that they are able to purchase goods at a discount that their competitors cannot achieve. The result is that Wal-Mart is able to offer products at such low prices that have actually driven many competitors out of business.
Making products - case study
Japanese automobile manufacturers Toyota and Honda have greatly lower worker pension and healthcare costs than the "Big-3" American manufacturers, General Motors (GM), Ford and Chrysler. This is true even for the Toyota and Honda facilities in the United States.
The cost per car for worker benefits paid by is $1360 for GM, $735 for Ford and $630 for Chrysler. Meanwhile, it costs Toyota $180 and Honda $106 per car. This results in much higher profits or lower prices for the Japanese autos.
Also, the Big-3 each have about 18,000 in "excess workers" that drive up their costs.
The Japanese auto manufacturers are winning the competition in terms of reduced costs.
Manufacturing cost reduction
Companies want to reduce the cost of getting or making their products. A major portion of the cost of goods involves wasteful practices that result in scrapped parts and returned goods from dissatisfied customers.
By continually improving the processes involved in making the product or delivering the service, a company can be more effective in reducing losses due to waste. This will allow the business to deliver products at lower prices while still achieving a good profit. Competitors may not be able to meet those prices.
Eliminating errors is a major goal. An extension of TQM is the Six-Sigma approach that seeks to eliminate errors to 6 parts in a million (six sigma deviation).
Getting lower cost, quality good from suppliers will also reduce costs.
Helping suppliers
A company's workers and suppliers provide the input that determined the cost and quality of the products being made. The company that empowers its workers and suppliers and helps them achieve these goals will have a competitive advantage over the company that browbeats its workers or suppliers.
Quality supplies
The first part of providing the customers with quality goods involves purchasing those products from suppliers or getting quality parts to make your own product. An important aspect of Kurtusian TQM is to help the supplier provide quality to your company.
Often companies browbeat their suppliers into providing goods at low costs. Wal-Mart has been known to be very tough on suppliers, even driving some out of business if they did not bend to Wal-Mart's demands. Other companies have also used such negative tactics.
By working closely with suppliers, you can provide a partnership where you get the quality supplies needed to gain your competitive advantage.
Quality workers
Your workers proved services that allow you to make quality products. Others deal with the customers and provide quality service to those customers. Courteous sales representatives can make for a pleasant buying experience for the customers.
Some companies demand much from their workers and even if they pay them well, they do not have a truly motivated staff. Some companies even demand that the sales people smile and act friendly, even if they don't feel like it.
Making the workers part of the team and helping them provide quality work can give you a good competitive advantage on competition that may have an unhappy workforce.
Customer satisfaction
A customer that is satisfied or even pleased with the products and services received, sees them as value-added. They will be glad to return to the company to purchase other items. They will refer others to the company.
This is not only true in sales to individuals, but it is also vital in corporate sales. In selling product or providing supplies to another company, you need to make sure the material is to specification and gives them the assurance that they can count on your company to provide such quality good in the future.
Customer satisfaction is the ultimate advantage a company can have over their competitors.
Applying TQM in a Church
A church, temple or place of worship is also a nonprofit business operation that has to remain financially viable. Applying our Total Quality Managment (TQM) principles to the operation of your church can help in maintaining its success. The three parts of implementing TQM are a focus on satisfying the customer, helping the suppliers provide quality goods and services, and continually improving the church's business processes.
Questions you may have include:
• How do you satisfy the customers?
• How do you help the suplliers?
• How do you improve processes?
Satisfy the Customer
Although they are usually called parishioners or church members, those people who attend your church and give donations are in essence your customers. The goal of your church should be to satisfy those customers by providing them with a high quality religious service that satisfies their needs and expectations.
You want repeat attendance
Like in any business—profit or nonprofit—a satisfied customer will become a regular customer and will also tell others about the business. You want your parishioners to attend church regularly and to bring their friends to the church.
Not only will satisfied attendees to your church come more often and give referrals, but they may also donate more money.
Find reason for attending service
In order to effectively satisfy those attending your church service, you should know why they come in the first place.
Most people attend religious services in order to receive spiritual guidance, assurances, and lessons. They attend to get food for their souls. There are some people who attend a specific church for social, political, or even business reasons. There are others who go only to appease their spouse or perhaps their parents.
Some of the more successful churches have ministers who are charismatic or entertaining orators or preachers. People come to hear the message and be inspired by the minister.
You need to find out why people come to your church, as well as why some did not return. Sometimes a survey or questionairre will provide that information. You may also get suggestions on how to improve the church experience for your members.
Give the customer what he wants and needs
If the attitude of the church is to provide a service to its members and guests, the activities will be to give those people what they came to church for in the first place.
Some years ago, the Catholic Church threatened parishioners with damnation if they did not attend church regularly. This was opposed to the TQM concept of providing a service that would cause them to want to return to recieve more spiritual food. The Church later found their approach no longer worked very well.
Help the suppliers
Another aspect of applying TQM in a church is to help your suppliers provide you with quality goods and services. The objective is to get quality goods on time and at the best price. Also, you want to reduce waste and costs.
Churches receive products and services from external suppliers and companies. They also receive internal services, such as musicians, ushers, chaplains, and youth leaders.
Selecting good suppliers for the church is important. But also, you need to deal with them in a manner that makes them want to do a good job for you. Just because you pay someone money does not mean that you have a right to be demanding.
Make your suppliers want to do business with your church. Find ways to help them and thank them. This will improve the operation of the facility and reduce the chances for problems.
Continuous improvement
Although you may think your church operation is running smoothly, there are always things that can be improved. Seek ways to streamline the operation of the church to make the best use of the money available. Also find ways to better satisfy the congregation and suppliers.
Not only must a church satisfy its customers, but they must also try to continually improve. Is there something they can do better in the church service or in Sunday school or such? You can look at ways to improve the use of your church property. You can try to make the services tighter and more professional.
You can survey the congregation to see if there are areas that need improvement. Is the sound system sufficient? Is the parking good enough? Are there services that the church can provide the community? Are there areas of waste where you are losing money and don't even realize it?
Seek to continually improve the way you do your church business.
Total Quality Management (TQM) is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. An important part of TQM is its a philosophy toward continually improving your business and products.
A number of quality initiatives have arrived since TQM started in the 1980s. The most recent is the Six Sigma program, which is quite similar to TQM. We follow the Kurtusian philosophy of TQM that was developed for the U.S. Air Force space programs.
There is a need for people who will champion the cause of improving the way business is done through effectively implementing TQM within a company. Your knowledge and skills in this area can help advance your career while improving your business. If you have any questions,
Basic Principles of Total Quality Management (TQM)
by Ron Kurtus (28 May 2001)
The basic principles for the Total Quality Management (TQM) philosophy of doing business are to satisfy the customer, satisfy the supplier, and continuously improve the business processes.
Questions you may have include:
• How do you satisfy the customer?
• Why should you satisfy the supplier?
• What is continuous improvement?
Satisfy the customer
The first and major TQM principle is to satisfy the customer--the person who pays for the product or service. Customers want to get their money's worth from a product or service they purchase.
Users
If the user of the product is different than the purchaser, then both the user and customer must be satisfied, although the person who pays gets priority.
Company philosophy
A company that seeks to satisfy the customer by providing them value for what they buy and the quality they expect will get more repeat business, referral business, and reduced complaints and service expenses.
Some top companies not only provide quality products, but they also give extra service to make their customers feel important and valued.
Internal customers
Within a company, a worker provides a product or service to his or her supervisors. If the person has any influence on the wages the worker receives, that person can be thought of as an internal customer. A worker should have the mind-set of satisfying internal customers in order to keep his or her job and to get a raise or promotion.
Chain of customers
Often in a company, there is a chain of customers, -each improving a product and passing it along until it is finally sold to the external customer. Each worker must not only seek to satisfy the immediate internal customer, but he or she must look up the chain to try to satisfy the ultimate customer.
Satisfy the supplier
A second TQM principle is to satisfy the supplier, which is the person or organization from whom you are purchasing goods or services.
External suppliers
A company must look to satisfy their external suppliers by providing them with clear instructions and requirements and then paying them fairly and on time.
It is only in the company's best interest that its suppliers provide it with quality goods or services, if the company hopes to provide quality goods or services to its external customers.
Internal suppliers
A supervisor must try to keep his or her workers happy and productive by providing good task instructions, the tools they need to do their job and good working conditions. The supervisor must also reward the workers with praise and good pay.
Get better work
The reason to do this is to get more productivity out of the workers, as well as to keep the good workers. An effective supervisor with a good team of workers will certainly satisfy his or her internal customers.
Empower workers
One area of satisfying the internal suppler is by empowering the workers. This means to allow them to make decisions on things that they can control. This not only takes the burden off the supervisor, but it also motivates these internal suppliers to do better work.
Continuous improvement
The third principle of TQM is continuous improvement. You can never be satisfied with the method used, because there always can be improvements. Certainly, the competition is improving, so it is very necessary to strive to keep ahead of the game.
Working smarter, not harder
Some companies have tried to improve by making employees work harder. This may be counter-productive, especially if the process itself is flawed. For example, trying to increase worker output on a defective machine may result in more defective parts.
Examining the source of problems and delays and then improving them is what is needed. Often the process has bottlenecks that are the real cause of the problem. These must be removed.
Worker suggestions
Workers are often a source of continuous improvements. They can provide suggestions on how to improve a process and eliminate waste or unnecessary work.
Quality methods
There are also many quality methods, such as just-in-time production, variability reduction, and poka-yoke that can improve processes and reduce waste.
Using TQM for a Competitive Advantage in Business
The Total Quality Management (TQM) philosophy of doing business emphasizes lowering costs by reducing waste, helping suppliers provide quality products and satisfying the customer with quality goods and services. Companies that can produce goods at lower costs than their competitors, while delivering quality products that satisfy their customers will have an advantage over those companies that do not duplicate those feats. Implementing TQM can help a company gain a competitive advantage in their business.
Questions you may have include:
• How can a company reduce costs?
• What does helping suppliers and workers do?
• How does customer satisfaction give an advantage?
Reducing costs
Achieving lower costs for getting or making products gives a company a great competitive advantage over their competition.
Getting products - case study
Wal-Mart has formed alliances with their suppliers, such that they are able to purchase goods at a discount that their competitors cannot achieve. The result is that Wal-Mart is able to offer products at such low prices that have actually driven many competitors out of business.
Making products - case study
Japanese automobile manufacturers Toyota and Honda have greatly lower worker pension and healthcare costs than the "Big-3" American manufacturers, General Motors (GM), Ford and Chrysler. This is true even for the Toyota and Honda facilities in the United States.
The cost per car for worker benefits paid by is $1360 for GM, $735 for Ford and $630 for Chrysler. Meanwhile, it costs Toyota $180 and Honda $106 per car. This results in much higher profits or lower prices for the Japanese autos.
Also, the Big-3 each have about 18,000 in "excess workers" that drive up their costs.
The Japanese auto manufacturers are winning the competition in terms of reduced costs.
Manufacturing cost reduction
Companies want to reduce the cost of getting or making their products. A major portion of the cost of goods involves wasteful practices that result in scrapped parts and returned goods from dissatisfied customers.
By continually improving the processes involved in making the product or delivering the service, a company can be more effective in reducing losses due to waste. This will allow the business to deliver products at lower prices while still achieving a good profit. Competitors may not be able to meet those prices.
Eliminating errors is a major goal. An extension of TQM is the Six-Sigma approach that seeks to eliminate errors to 6 parts in a million (six sigma deviation).
Getting lower cost, quality good from suppliers will also reduce costs.
Helping suppliers
A company's workers and suppliers provide the input that determined the cost and quality of the products being made. The company that empowers its workers and suppliers and helps them achieve these goals will have a competitive advantage over the company that browbeats its workers or suppliers.
Quality supplies
The first part of providing the customers with quality goods involves purchasing those products from suppliers or getting quality parts to make your own product. An important aspect of Kurtusian TQM is to help the supplier provide quality to your company.
Often companies browbeat their suppliers into providing goods at low costs. Wal-Mart has been known to be very tough on suppliers, even driving some out of business if they did not bend to Wal-Mart's demands. Other companies have also used such negative tactics.
By working closely with suppliers, you can provide a partnership where you get the quality supplies needed to gain your competitive advantage.
Quality workers
Your workers proved services that allow you to make quality products. Others deal with the customers and provide quality service to those customers. Courteous sales representatives can make for a pleasant buying experience for the customers.
Some companies demand much from their workers and even if they pay them well, they do not have a truly motivated staff. Some companies even demand that the sales people smile and act friendly, even if they don't feel like it.
Making the workers part of the team and helping them provide quality work can give you a good competitive advantage on competition that may have an unhappy workforce.
Customer satisfaction
A customer that is satisfied or even pleased with the products and services received, sees them as value-added. They will be glad to return to the company to purchase other items. They will refer others to the company.
This is not only true in sales to individuals, but it is also vital in corporate sales. In selling product or providing supplies to another company, you need to make sure the material is to specification and gives them the assurance that they can count on your company to provide such quality good in the future.
Customer satisfaction is the ultimate advantage a company can have over their competitors.
Applying TQM in a Church
A church, temple or place of worship is also a nonprofit business operation that has to remain financially viable. Applying our Total Quality Managment (TQM) principles to the operation of your church can help in maintaining its success. The three parts of implementing TQM are a focus on satisfying the customer, helping the suppliers provide quality goods and services, and continually improving the church's business processes.
Questions you may have include:
• How do you satisfy the customers?
• How do you help the suplliers?
• How do you improve processes?
Satisfy the Customer
Although they are usually called parishioners or church members, those people who attend your church and give donations are in essence your customers. The goal of your church should be to satisfy those customers by providing them with a high quality religious service that satisfies their needs and expectations.
You want repeat attendance
Like in any business—profit or nonprofit—a satisfied customer will become a regular customer and will also tell others about the business. You want your parishioners to attend church regularly and to bring their friends to the church.
Not only will satisfied attendees to your church come more often and give referrals, but they may also donate more money.
Find reason for attending service
In order to effectively satisfy those attending your church service, you should know why they come in the first place.
Most people attend religious services in order to receive spiritual guidance, assurances, and lessons. They attend to get food for their souls. There are some people who attend a specific church for social, political, or even business reasons. There are others who go only to appease their spouse or perhaps their parents.
Some of the more successful churches have ministers who are charismatic or entertaining orators or preachers. People come to hear the message and be inspired by the minister.
You need to find out why people come to your church, as well as why some did not return. Sometimes a survey or questionairre will provide that information. You may also get suggestions on how to improve the church experience for your members.
Give the customer what he wants and needs
If the attitude of the church is to provide a service to its members and guests, the activities will be to give those people what they came to church for in the first place.
Some years ago, the Catholic Church threatened parishioners with damnation if they did not attend church regularly. This was opposed to the TQM concept of providing a service that would cause them to want to return to recieve more spiritual food. The Church later found their approach no longer worked very well.
Help the suppliers
Another aspect of applying TQM in a church is to help your suppliers provide you with quality goods and services. The objective is to get quality goods on time and at the best price. Also, you want to reduce waste and costs.
Churches receive products and services from external suppliers and companies. They also receive internal services, such as musicians, ushers, chaplains, and youth leaders.
Selecting good suppliers for the church is important. But also, you need to deal with them in a manner that makes them want to do a good job for you. Just because you pay someone money does not mean that you have a right to be demanding.
Make your suppliers want to do business with your church. Find ways to help them and thank them. This will improve the operation of the facility and reduce the chances for problems.
Continuous improvement
Although you may think your church operation is running smoothly, there are always things that can be improved. Seek ways to streamline the operation of the church to make the best use of the money available. Also find ways to better satisfy the congregation and suppliers.
Not only must a church satisfy its customers, but they must also try to continually improve. Is there something they can do better in the church service or in Sunday school or such? You can look at ways to improve the use of your church property. You can try to make the services tighter and more professional.
You can survey the congregation to see if there are areas that need improvement. Is the sound system sufficient? Is the parking good enough? Are there services that the church can provide the community? Are there areas of waste where you are losing money and don't even realize it?
Seek to continually improve the way you do your church business.
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