Have you encountered TQM in your search for Capsim simulation strategies but can’t figure out what it is and how it works?
Capsim TQM is one of the top strategies most Capsim students use to win. This is because, when applied right, it brings your business exceptional benefits. For instance, it lowers labor costs and increases sales and sustainable options.
So, what is Total Quality Management?
Here is what our Capsim homework experts have to say about it!
What is TQM in Capsim Game?
TQM is a Capsim simulation option that increases sales and lowers loss for a company when executed right. It gives your business a competitive advantage in the market, helping you optimize your profits.
However, you begin experiencing diminishing marginal returns once you reach a certain investment point.
So, how does Capsim TQM work?
Total quality management ensures customers get what they expect through quality assurance. In addition, it attends to unsatisfied clients by making corrections to prevent such scenarios from occurring again. So, if your business struggles to match your client’s quality demands, you can apply total quality management.
To improve the quality of your products, TQM uses defect reduction. This means that instead of assessing the quality during production, this strategy enhances the quality. As a result, you don’t hire quality assurance personnel and therefore save time.
Constituents of a TQM
To realize success with the TQM strategy, all your team members need the following;
- Effective communication
- Leadership skills
The Principles of Total Quality Management
Like other successful strategies, TQM adheres to certain principles to optimize efficiency. They include:
- Process approach – TQM implementation is a process and not a one-time plan.
- Customer-centered- TQM focuses on enhancing the product to attain optimum customer satisfaction.
- Integrated system – TQM does not work independently; it is flexible to incorporate into your system.
- Strategic and systematic – When implementing TQM, you need a plan that matches the production schedule.
- Fact-based decision-making – To succeed with this strategy, you must make data-informed decisions. For instance, are the customers satisfied with the current product state? If not, what steps can you take to enhance it – is it a price adjustment or promotion?
- Continual improvement – TQM is a long-term strategy. This means you will consistently look for gaps in its implementation and make it better to optimize your results.
- Communication – A lot of funds are invested in TQM. Hence, a lack of accurate data can accrue your company huge losses. You can eliminate or reduce loss by ensuring there’s effective communication to help make fact-based decisions.
Advantages of TQM
- It reduces labor costs
- TQM increases sales
- Improves customer satisfaction
- Helps in better management of costs
- It reduces loss from substandard products
Disadvantages of Total Quality Management
- It requires a high level of commitment (company-wide)
- TQM bears a relatively high cost
How To Implement Capsim TQM
Developing a TQM is a meticulous process, as it involves several elements. Below is how you can prepare and integrate your TQM step-by-step
Step 1. Have a Clear Vision, Mission, and Values
Before you begin strategizing on the TQM plan you will implement, you have to communicate your vision, values, and mission clearly. Reason? These are some of the elements that inform your TQM strategy.
Step 2. Identify Critical Success Factors
What are the critical success factors?
Typically TQM’s success factors include teamwork, consistent improvement, customer focus, training, leadership, and management commitment.
Step 3. Develop Measurements and Metrics to Track CSF
TQM development demands continuous performance assessment of the critical success factors. Otherwise, you may experience failure regardless of spending much money there.
That’s why you need to measure the reliability of the TQM plan in every round. And as a result increase the chances of earning high profit in the next round.
Step 4. Point Out the Key Customer Group
Now that you have a clear direction from the vision and mission and the CSFs are set in place, you must identify the main customer group. This will help you examine the performance of the specific product in terms of pricing, cost, and demand based on the products expert tip.
Step 5. Solicit Customer Feedback
Your company needs to gather feedback from the identified customer group. This will give accurate data on your old and new products for every round. Remember, TQM is customer focused, and we are working towards enhancing the product for them.
Step 6. Create a Survey Tool
Develop a survey tool centered on your products for the customers to fill.
Step 7. Survey Each Customer Group
Distribute the survey questions to all the individuals in the key customer group.
Step 8. Develop an Improvement Plan
Now that you’ve gathered enough information, you can create a plan to enhance your products and increase sales.
Capsim TQM Terminology
Some of the Total Quality Management terminologies you will encounter during your simulation include:
Total Quality Management or TQM
This is a combination of initiatives applied to boost sales and lower losses for a company.
Initiatives refer to the areas in your business that you can invest in – usually ten in number. Every initiative follows a unique application method and consequences. Hence, you must examine the most beneficial option before investing in the ideal spot.
Implementing Total quality management costs money. Hence, you need a TQM budget, which is the amount of money you plan to invest in each initiative for every round.
TQM essay is a consistent initiative to improve efficacy and flexibility. This system eliminates errors in the early production phases and is focused on optimizing customer satisfaction.
Automation rating refers to the investment standards that decrease labor costs during production. The capsim automation rating starts at 3.0 and scales up to 10.0. Note that the higher the rating, the longer it takes to research and develop your product.
The TQM approach is a management system that focuses on the customers for long run success of a company or business.
Capacity Capsim TQM
Capacity refers to the number of units bought or sold per thousand units. For instance, if your sell capacity is X, you sold X out of 1000 units.
Have you encountered a new TQM terminology leaving you in a dilemma on the next step? Our Capsim team can help you maneuver through this strategy. All you have to do is contact us; we will guide you through every TQM initiative implementation.
TQM or Sustainability Decisions
Every Capsim game round poses new challenges to students. As a result, you have to develop a new strategy to increase your performance and score. One of the top ways to accomplish this is TQM or sustainability decisions.
So how can you implement your plan?
Start by investing $1,200 for every item per round. You should begin with the most beneficial initiatives and repeat this for three rounds. When you get to the third sustainability round, you will experience diminishing marginal returns.
So, cease to pump in more cash on these initiatives. The priority order for the initiatives should follow this list
- Reduce labor cost
- Green initiatives to reduce material costs
- Reduce R&D costs
- Increase demand
- Reduce Sales, General and Administrative expenses
So in the early rounds, you should invest in the most effective initiatives and then shift to those with the least benefits. Not sure what green initiatives to start with? Feel free to ask our experts for TQM strategy help!
Frequently Asked Questions
Can you sell automation?
Yes, you can sell automation by typing in a negative number that indicates the amount you’ve parted with. Usually, when you sell a capacity, the ‘transaction’ is processed immediately, and you receive the money in the present round.
Why does TQM fail?
The most common causes of TQM failure include:
- Poor communication
- Inadequate resources
- Poor leadership
- Insufficient training
- Average employee commitment
- No support from top management
What are TQM Techniques?
The TQM techniques you can use to oversee the performance include:
- Statistical process control
- Business process re-engineering
- Continuous improvement process
- Six Sigma
- Variation risk management
Struggling To Lower Your Sales Budget or Labor Cost?
Are you stuck applying TQM to lower your labor costs or sales budget? Our Capsim team can help you accomplish your desired results. Fortunately, we are a call away, so you can reach us anytime!