Introduction to Total Quality Management

Total Quality Management (TQM)

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What is Total Quality Management (TQM)?

Total Quality Management (TQM) is a management framework based on the belief

that an organization can build long-term success by having all its members -- from
low-level workers to its highest-ranking executives -- focus on improving quality and,
thus, delivering customer satisfaction.

This management approach is used to simplify supply chain management, as well as

to detect, reduce or remove errors. TQM requires organizations to focus on
continuous improvement, or Kaizen. TQM focuses on continual internal and process
improvements over the long term, thereby enhancing the quality of produced
products or services.

All departments that contribute to the creation of a product or service -- including

design, engineering and marketing teams -- participate in TQM. Management acts as
a facilitator by providing quality staffing and training and setting goals.

TQM has no single agreed-upon approach but does follow eight guiding principles
that focus on improving quality.

Importance of TQM

TQM can have a beneficial effect on employee and organizational development. By

having all employees focus on quality management and continuous improvement,
companies can establish and uphold cultural values that create long-term success
for both customers and the organization. TQM's focus on quality helps organizations
identify skill deficiencies in employees, along with the necessary training, education
or mentoring required to address those needs.

With a focus on teamwork, TQM leads to the creation of cross-functional teams and
knowledge sharing. The increased communication and coordination across disparate
groups deepens institutional knowledge and gives companies more flexibility in
deploying personnel.
Principles of TQM

TQM prescribes a series of ways for organizations to accomplish this, with the
pathway to successful continuous improvement centered on the use of strategy, data
and effective communication to instill a discipline of quality into the organization's
culture and processes.

More specifically, TQM highlights the processes that organizations use to produce
their products, and it calls for organizations to define those processes, continuously
monitor and measure their performance, and use that performance data to drive
improvements. In addition, it requires all employees and organizational departments
to be part of this process. The eight guiding principles that TQM uses to improve
quality include the following:

1. Customer focus. The customer determines the quality level of the products
and services. Customer input is valued, as it provides a better understanding
of what the customer needs.
2. Employee involvement. All employees must participate in the processes and
system. They must be properly trained and given the needed resources to
complete their tasks on time.
3. Focus on process. Processes must be continually analyzed to identify
weaknesses. Every employee who takes part in the process should be
properly educated in their contributions, ensuring the right steps are taken at
the right time.
4. Integrated business systems. All TQM processes should be integrated into
a business process. Integrated systems convey potentially useful data across
departments, enabling everyone to be on the same page.
5. Strategic and systematic approach. Planning and management are
required using a strategic plan with quality as a base component.
6. Continual improvement. A focus on continually improving quality helps an
organization adapt to changing markets and achieve competitive advantages.
7. Focus on data. Data should be collected, documented and analyzed to
improve decision-making accuracy and to predict trends based on previous
history.
8. Communication. Communication between teams with information such as
strategies, methodologies or timeliness is essential to improving operations.
Good communication can also motivate employees and improve morale.

Implementation principles and processes

The general process of implementing TQM follows these steps:

1. The organization assesses its current culture and quality management

systems and identifies core values.
 2. Management decides to commit to TQM and develops a TQM master plan.
3. The organization identifies and prioritizes customer demands.
4. Management maps the processes needed to meet customer needs.
5. Management creates a team to oversee efforts to improve processes.
6. Management starts contributing to the process by providing additional
planning and training.
7. Management creates a process to standardize daily process management.
8. Management continually asks employees for feedback.

Implementing TQM is a long-term commitment, and the length of time needed for
planning, development and implementation varies by organization.

Benefits of TQM

TQM offers the following benefits:

● Less product defects. An objective of TQM is to create products and

services correctly the first time. This means that products ship with fewer
defects, reducing product recalls, future customer support overhead and
product fixes.
● Satisfied customers. High-quality products that meet customers' needs
result in higher customer satisfaction. High customer satisfaction, in turn, can
lead to increased market share, revenue growth via upselling and
word-of-mouth marketing initiated by customers.
● Lower costs. As a result of less product defects, companies save money on
customer support, product replacements, field service and creating product
fixes. The cost savings flow to the bottom line, creating higher profit margins.
● Well-defined cultural values. Organizations that practice TQM develop and
nurture core values around quality management and continuous
improvement. The TQM mindset pervades across all aspects of an
organization, from hiring to internal processes to product development.

Disadvantages of TQM

The downsides of TQM include the following:

● Planning and resources. TQM needs a significant amount of planning and

resources over time to be properly allocated to the change.
● Companywide commitment. Continuous improvement in TQM means the
organizational culture must focus on improving processes. All management
levels must be supportive.
● Added costs. TQM might add training, infrastructure and team development
costs.
● Time. It might take years for an organization to fully show intended results.
 ● Partial efforts. Because of the effort involved in implementing TQM, a partial
move toward it can result in failure.

Examples of TQM

Automobile manufacturer Toyota exemplifies TQM. The adoption of TQM and Kaizen
at Toyota led to higher product and work quality at all levels of the organization.
Toyota adopted a related practice called statistical quality control in 1949. In 1951,
Toyota launched the Creative Idea Suggestion System, which was based on a
suggestion system used at Ford.

In 1965, Toyota was awarded the Deming Application Prize for major advances in
quality improvement. In 1994, the "Toyota Group Executive TQM Training Course"
was established, providing TQM training for new executives. Toyota's TQM initiatives
continue to the present day. In 2011, Toyota announced that its Creative Idea
Suggestion System had generated more than 40 million suggestions to date.

Another example of TQM occurred at Tata Steel, a steel-making company based in

India and a subsidiary of Tata Group. Tata Steel adopted TQM in the 1980s. The
company was awarded the Deming Application Prize in 2008. Tata Steel used TQM
methodologies to gain a deep understanding of customers. They sought to ensure
value creation in a system that covered customers and suppliers.

In 2008, Tata Steel created the Performance Improvement Committee to drive

continuous performance improvement. Performance Improvement Groups were
established for iron making, steel making, flat rolling, long rolling, maintenance and
more.

As part of its 2008-2009 annual report, Tata Steel reported that its TQM initiatives
resulted in a $150 million bottom-line effect on its business.

History of TQM

TQM dates back to the 1920s when the science of statistics was applied to Quality
control in an industrial setting. Walter A. Shewhart, an engineer at Western Electric
and Bell Telephone Laboratories, created a statistical control chart in the mid-1920s
and then published Economic Control of Quality of Manufactured Product in 1931.
Although the PDCA -- plan-do-check-act -- model is often called the Deming Cycle,
Deming himself credited Shewhart with its creation. Deming later went on to
advocate for a plan-do-study-act model.

Quality control methods evolved in subsequent decades, with industrial engineer

Joseph Juran first employing Shewhart's methods and, later, in 1951, publishing his
influential book, Juran's Quality Control Handbook.
Deming further developed Shewhart's ideas in post-World War II Japan, where the
U.S. government had positioned him to advise Japanese leaders on the rebuilding
efforts taking place there in the late 1940s and 1950s. Working with the Union of
Japanese Scientists and Engineers, Deming taught and lectured on statistical quality
control, while adding his own ideas about quality control in the process. Among
these teachings was Deming's belief that ordinary workers had a role to play in
quality control.

The method that evolved during the 1950s and 1960s eventually became known as
Total Quality Management. Many credit the Japanese application of TQM as a
significant contributor to the country's economic recovery following World War II, as
well as its midcentury industrial successes.

Organizations worldwide took note of Japan's successes using TQM. U.S. producers
throughout the 1970s and 1980s adopted quality and productivity methods, including
TQM, to better compete in the increasingly global marketplace.

Although Deming, Juran, Shewhart and others published numerous papers and
books on TQM, many organizations adopted different TQM trends or only parts of
the TQM principles and evolved some of TQM's ideas to meet their own needs.

Moreover, as business needs for efficiency, productivity and quality have further
evolved, many organizations have adopted other, more modern management
techniques. Although TQM is still influential, other management techniques, such as
Six Sigma and lean manufacturing, which better address organizational goals for the
21st century, have replaced it in many businesses.
 Introduction to Total Quality Management

Total Quality Management (TQM) is a management approach that seeks to optimise the
quality of products and services by involving all employees in the organisation. TQM
emphasises continuous improvement, customer satisfaction, and employee involvement.

The principles of TQM include a focus on the customer, a commitment to quality, continuous
improvement, teamwork, and employee empowerment. By focusing on the needs of customers
and striving for continuous improvement in all areas of the organisation, TQM can help businesses
achieve higher levels of efficiency and profitability. It also encourages a culture of continuous
learning and improvement, with a focus on eliminating waste and reducing variation in processes.
By prioritising long-term success over short-term gains, TQM has been shown to lead to increased
efficiency, higher quality products and services, and improved customer loyalty. While it may
require a significant upfront investment in training and infrastructure, the benefits of TQM can be
substantial in the long run.

To implement TQM successfully, organisations must establish clear goals and objectives,
provide training and support for employees at all levels, and foster a culture of collaboration
and innovation. With its emphasis on quality and customer satisfaction, TQM can help businesses
stay competitive in today's fast-paced marketplace.

History and Evolution of TQM

 Total Quality Management (TQM) originated in the 1950s and 1960s in Japan, specifically in
companies like Toyota and Honda.
 TQM was heavily influenced by the concepts of quality control developed by W. Edwards
Deming, Joseph Juran, and Armand Feigenbaum.
 In the 1980s, TQM gained global recognition and became popular in industries worldwide
due to the success of Japanese companies in achieving high-quality products and services.
 The Deming Prize, established in 1951, became a prestigious international award for
organizations that demonstrated exceptional achievements in quality management.
 The International Organization for Standardization (ISO) introduced the ISO 9000 series in the
late 1980s, providing a framework for implementing TQM principles and ensuring consistent
quality standards across industries.
 TQM evolved over time to incorporate concepts like Six Sigma, Lean Manufacturing, and
Kaizen, which further enhance quality and efficiency.
 With the advancement of technology, TQM has also embraced digital tools and automation
to improve processes and enhance quality control.
 TQM continues to evolve in response to changing business environments, customer
expectations, and emerging quality management methodologies.

Difference between the Traditional Quality Approach and the TQM Quality Approach

The traditional quality approach and the TQM quality approach differ in several ways. Here are some
of the key differences between the two:

 The traditional quality approach is focused on inspecting products or services after they have
been produced, while the TQM approach emphasises preventing defects from occurring in
the first place.
  The traditional approach relies on a hierarchical structure where decisions are made at the
top and passed down to lower levels, while TQM encourages participation and input from all
employees.
 The traditional approach often views quality as a separate function from other business
operations, while TQM integrates quality into all aspects of the organisation.
 The traditional approach may prioritise short-term goals over long-term success, while TQM
aims for continuous improvement and sustainable growth.
 Finally, the traditional approach may be reactive to problems that arise, while TQM is
proactive in identifying potential issues and addressing them before they become major
problems.

The Primary Emphasis of TQM

In terms of the quality process, TQM emphasises the following key aspects:

 Customer Focus: TQM begins with understanding and meeting customer needs and
expectations. Organizations strive to gather customer feedback, conduct market research,
and actively listen to customers to identify areas for improvement.
 Leadership Commitment: TQM requires strong leadership commitment and support. Top
management establishes a quality vision, sets quality goals, and provides resources and
guidance to ensure the organization's commitment to quality.
 Employee Empowerment: TQM recognizes that quality improvement is the responsibility of
every employee. Employees are encouraged to take ownership of quality by empowering
them to identify and address quality issues, make decisions, and contribute to continuous
improvement efforts.
 Continuous Improvement: TQM promotes a culture of continuous improvement in all
aspects of the organisation. This involves identifying opportunities for improvement,
implementing changes, measuring results, and making further adjustments to achieve better
quality outcomes.
 Process Approach: TQM focuses on managing processes rather than individual activities.
Organizations analyze and improve key processes to ensure that they are efficient, effective,
and capable of delivering high-quality outcomes.
 Data-driven Decision Making: TQM emphasizes the use of data and statistical analysis to
make informed decisions. Organizations collect and analyze data related to quality metrics,
customer feedback, and process performance to identify trends, root causes of problems, and
opportunities for improvement.
 Supplier Relationships: TQM recognizes the importance of strong relationships with
suppliers. Organizations work closely with suppliers to ensure the quality of incoming
materials and services, and to foster collaboration and continuous improvement throughout
the supply chain.
 Training and Education: TQM emphasizes the importance of providing training and
education to employees to enhance their skills, knowledge, and understanding of quality
management principles and techniques.
 Quality Assurance and Quality Control: TQM incorporates quality assurance and quality
control processes to ensure that products and services meet specified requirements. This
involves implementing robust quality control measures, conducting inspections and tests, and
monitoring processes to prevent defects and ensure compliance with quality standards.
Overall, TQM is a holistic approach to quality management that focuses on creating a culture of
excellence, involving everyone in the organization, and continuously improving processes and
outcomes to deliver superior quality products and services.

TQM in a Nutshell

Additional Reading Resources

Introduction of total quality management (TQM) into the process of teaching management: A discussion of initial
applications

Reference : Haug, Peter; Keleman, Ken S. Journal of Management Education Preview publication details; Thousand
Oaks Vol. 20, Iss. 3, (Aug 1996): 319.

To access the complete document please go to the e-library and copy paste the below DOI number on search bar
DOI 195750083

Abstract
Quality (Quality Circles, Continuous Quality Improvement, Total Quality Control or Management) has become a
nearly obligatory topic in current management and organizational behavior texts (cf. The presumption here, of
course, is that if we are more effective in the classroom process, our students will do a better job of mastering the
course material, and pedagogical studies (Gartner, 1993; Hamilton et al., 1991-1992; Johnson, 1990; McKeachie,
1986) support the assumption that instructional process improvements enhance the quality of learning. Because our
efforts are directed at improving instructional processes, we have not established standardized measures for
monitoring student learning. [...]traditional student evaluations provide a reasonable measure of the relationship
between faculty effectiveness and student learning performance, and, generally, higher faculty ratings should result
in classes where students learned more. [...]the success of this instructional quality management program relies on
individual faculty following this systematic process and allowing sufficient time to monitor the results of revisions
made in their teaching approaches and courses.