Both Enterprise Resource Planning (ERP) and Total Quality Management (TQM) share similar goals - customer satisfaction, productivity improvement, increased competitiveness, waste reduction, effort duplication and so on. ERP system will help in achieving these goals when used in conjunction with TQM.
Here ERP has the role of an enabler of the TQM principles and philosophies. ERP is also benefited by the implementation of TQM. Effective use of TQM creates better performing ERP systems. TQM brings problem solving techniques and continuous improvement opportunities for all ERP systems. The effective use of TQM helps companies obtain the maximum return on investment from expensive investments.
Therefore, the organizations applying or targeting TQM in their businesses, ERP software has become an essential necessity.
TQM is a way of life for a company. It has to be introduced and led by top management. This is a key point. Attempts to implement TQM often fail because top management does not lead and get committed but just delegates and pays lip service.
Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well-defined systems, methods and performance measures for achieving those goals.
These systems and methods guide all quality activities and encourage participation by all employees. The development and use of performance indicators is linked, directly or indirectly, to customer requirements and satisfaction, and to management and employee remuneration.
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