The document discusses applying total quality management (TQM) principles for small and medium enterprises (SMEs) to make manufacturing processes better and cheaper. It suggests that many SMEs currently have traditional manufacturing characteristics like high inventory, long setup times, and high costs. To improve, SMEs should balance the use of people, equipment, and materials to reduce waste and lower manufacturing costs through continuous workflow, engaging workers, eliminating waste, and improving safety.

1. Application of
TQM
for SMEs

2. Where are we?
Are we a traditional Manufacturing company
• Process layouts?
• High Inventory – Inventory considered as Asset?
• Very high setup time?
• Low variety, high volume?
• Big EBQ batch sizes?
• Long Lead time?
• Inward focus not customer focus?
• High manufacturing cost?
• Low Profit margins?

3. What do we need to do immediately
Make it:
• Better
• Cheaper
– In Manufacturing
– New Product Introduction
– Information flow

4. Efficient Manufacturing System
How?
þ Balanced use of people, equipment and material
that gives us the lowest manufacturing cost
þ Lowest manufacturing cost assumes all waste is
eliminated