Improving Performance and Productivity in a Pharmaceutical Company Through Total Quality Management

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Improving Performance and Productivity in a Pharmaceutical Company Through Total Quality Management

Within the pharmaceutical industry, systems for improving operational efficiency and effectiveness are becoming more and more common. Customers are becoming sentient of the increasing standards, getting access to a broad range of pharmaceutical drugs to choose. Besides, there is an ever-increasing demand for quality products and this global change has forced pharmaceutical companies to invest a considerable resources in appreciating and implementing Total Quality Management. To thrive in the marketplace, each part of the pharmaceutical industry should work properly and collaboratively towards the same goals, knowing that every activity and each person has is dependent upon each other. Besides, pharmaceutical companies are improving competitiveness by looking for a higher level of efficiency across all utilities and processes and are preferring Total Quality Management approach to stay in business.

The purpose of this essay is to discuss how to improve performance and productivity in a pharmaceutical company through total quality management (TQM). Constant improvement of business processes is of substantial importance for pharmaceutical companies looking to maintain competition in today’s global markets. In the pharmaceutical industry, companies need to compete both improving existing drugs and bringing new drugs to the market. Constant enhancement in business activities targeting the customer all through the whole company and stressing on quality and flexibility is are some of the major methods by which businesses cope up with their competitors in the marketplace. Due to this perception, quality and its sustenance and the related constant expansion are appreciated by any organization as a way by which they can thrive in the market place and retain a competitive advantage over their market competitors. Therefore businesses which do not maintain change are at a risk of failing. Total quality management is a primary factor in the business quality upheaval that has been proven itself to be one of the most influential creators of sales and revenue growth, soundly based and sustainable business expansion, and genuinely good new jobs in the 20th century.

Total Quality Management

TQM is a strategy that emphases on promoting the quality and performance that will meet client needs. TQM can be achieved through incorporating all quality related processes and functions throughout the enterprise. TQM takes into account all quality measures at all levels while involving all organization employees. Total Quality Management is a philosophy that focuses on constant involvement and improvement of the whole company beginning from the top of the administrative structure and culminating at the bottom level of employees

Quality is attained when the customers’ implied and expressed requirements are fully met and is a crucial declaration from which some common explanations of quality have been reached. They include conformance to the requirement, fitness for use, service that can meet an implied or stated need, and the totality of characteristics and features of a product. It is, therefore, significant to note that meeting the client requirements and expectations is a key factor in all these definitions.

Besides, it is vital for the company to note such customer requirements early in the product manufacturing cycle and in the marketplace. The ability of the company to define precisely the needs associated with delivery, safety, price, performance, design, and other business processes and activities will place a firm ahead of its market competitors. Total quality is an approach for attaining client satisfaction that includes all employees and managers and employs quantitative methods to improve a company's processes constantly

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TQM practices can be classified as both internal and external. Internal TQM practices include management strategies that are aimed at integrating awareness in all company processes. Internal TQM practices include those factors that will affect the future of TQM from within the TQM discourse. These factors include employee empowerment and involvement, top management support and direction, long-term commitment and leadership, focus on the customer, importance of rewards and recognition, commitment to training, and renewed communication. External TQM practices involve those factors that will influence the future of TQM from without the TQM disclosure. These external factors include environmental drivers, markets, and technology.

TQM is associated with many benefits when adequately implemented such as better employee morale, increased level of productivity and efficiency, reduced levels of cost, elimination of defects, and reduced scrap and reworked. Conversely, various barriers face TQM implementation process including lack of customer focus, inadequate resources for total quality management, deficiency of cultural dynamism, lack of leadership for quality, bad attitudes of responsibility, and competitive markets.


Performance evaluation is fundamental to TQM as well as the total quality organization. Companies measure their progress in some way via the financial performance which can be realized through profit or failure by insolvency. Besides, in an efficient total quality organization, performance will be measured through improvements seen by the customer and the outcomes provided to other stakeholders such as the company shareholders.

In the production sector, there is a significant scope of performance measurement and most facets of the production process can be measured precisely in quantitative terms. The Quality-Cost-Delivery (OCD) system provides a way in which manufacturers can measure their performance. The system comprises of seven essential measures which between them capture some key drivers of the production operations. These QCD measures are Value Added per Person and Delivery Schedule Achievement, Floor Space Utilization, People Productivity, Overall Equipment Effectiveness, Stock Turns and Not Right First Time. Performance and Total Quality Management.

According to the recent research on total quality management, there exists a relationship between performance and Total Quality Management. For instance, TQM has confidently linked invention performance since it setups a culture and system that will offer a conducive environment for companies to innovations. However, a different argument states that the application of TQM practices and principles can prevent companies from being innovative. TQM focused more on with implementation of strategies rather than strategic choice.

Besides, there is an association between TQM and cost leadership. Deliberate strategies to innovation have been labeled TQM as a value leader because it majorly emphasizes on process innovation rather than product innovation. TQM can be linked to cost leadership strategy when focusing product innovation. Also, the use of TQM practices promotes quality performance, eliminates reworks and scraps, and reduces production process variance. Therefore TQM initiative enhances potential pharmaceutical companies to improve their performance.

The aspects of TQM practice implementation benefits have a significant effect on company’s performance. Practices of customer focus such continuous gathering of information on customer’s needs, customer-focused vision, customer relationship management practice, and the philosophy of putting the customer first. Good leadership practices and top management commitment can also influence a company’s performance improvement. Besides, training practices that have a high impact on company’s performance include employees being motivated and informed about the company’s goal of TQM, employee empowerment, and training is vital to the success of TQM. There TQM can be used to improve performance and productivity in a pharmaceutical company.