Lean production and total quality management (TQM) are interrelated approaches to quality management. Lean production focuses on eliminating waste (any and all forms of inefficiencies) and achieving greater levels of efficiency and productivity. Total quality management (TQM) focuses on quality assurance and quality improvements. For example, Amazon uses lean principles in its fulfilment centres, optimizing processes such as inventory management, order picking, and packaging to improve operational efficiency and reduce costs.

Watch this short video about how Amazon combines technology and human resources at its warehouse in Lakeland, Florida to improve operational efficiency.

 Advantages of lean production and TQM

The advantages of lean production and TQM on an organization include the following points:

The positive impacts of lean production and TQM on an organization include the following arguments:

• Lean production and TQM help to improve the quality of an organization’s goods and services.

• Having a clear focus on lean production and quality can help to improve the firm’s competitiveness.

• It encourages closer working relationships with suppliers (for lean production), and customers and employees (TQM).

• Being efficient and being responsible for producing quality goods and services can help to motivate employees.

• Efficiency gains, higher productivity, and reduced waste all help to reduce costs for the organization, at least in the long run.

• Being lean (high efficiency and low or no waste) and offering high-quality products can enhance the reputation of the business. It then becomes easier for businesses to attract and retain customers, as they trust the organization, its products and brands.

Essentially, lean production and total quality management can positively impact organizations by improving their operational efficiency, reducing waste, enhancing product quality, and increasing customer satisfaction.

Disadvantages of lean production and TQM

The disadvantages, or negative impacts, to organizations that pursue lean production and TQM include the following:

• The necessary costs of staff training and development in order to achieve greater efficiency, lower waste and improved quality.

• There are also fees that need to be paid to third-party accreditation authorities, such as the International Organization for Standardization (ISO) for quality assurance.

• Waste management costs have to be considered. For many businesses, the costs of recycling are higher than using less environmentally friendly production processes.

• Ultimately, lean production and a culture of TQM can only work if employees are truly devoted to the philosophy. Some workers may not want to take on extra responsibilities, and it can create stress or conflict which harms working relationships.

• It can take time to change a corporate culture to embrace TQM and lean production.