Aragon, Jalyn D.

TQM00
BAFM 3-B

What is Total Quality Management (TQM)?

Total Quality Management (TQM) can be summarized as a management system for a customer-focused organization that
engages all employees in continual improvement of the organization. It is an integrative system that uses strategy, data, and
effective communications to integrate the quality discipline into the processes, products, services, and culture of the
organization. The methods for implementing this approach are found in the teachings of quality leaders such as Philip B.
Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa, and Joseph M. Juran. TQM also draws on a knowledge of
the principles and practices of:
 The behavioral sciences
 The analysis of quantitative and nonquantitative data
 Economics theories
 Process analysis
-American Society for Quality, 2025
Key 8 Elements of TQM
TQM integrates strategy, data, and effective communication to embed quality into the organization’s culture and activities. The
following are the 8 key elements of TQM:
1. Customer-focused: The level of quality is ultimately determined by the customer. Regardless of the organization’s efforts
to improve quality—be it through employee training, quality integration in design, or technological upgrades—the
customer’s perception of these efforts determines their success.
2. Total Employee Involvement: Every employee works towards common goals with full commitment. Achieving total
employee commitment requires eliminating workplace fear, empowering employees, and providing a conducive
environment. High-performance work systems merge continuous improvement with regular business operations, with
self-managed work teams being a form of empowerment.
3. Process-Centered: TQM emphasizes process thinking. A process involves steps that transform inputs from suppliers
(internal or external) into outputs delivered to customers (internal or external). These steps are clearly defined, and
performance is continuously monitored to detect variations.
4. Integrated System: TQM focuses on the horizontal processes that interconnect different functional specialties within an
organization. Micro-processes combine into larger processes, which aggregate into business processes essential for
strategy implementation. Everyone should understand the organization’s vision, mission, guiding principles, quality
policies, objectives, and critical processes. An integrated business system, possibly modeled after the Baldrige Award
criteria or ISO 9000 standards, connects all improvement elements to exceed stakeholder expectations.
5. Strategic and Systematic Approach: Managing quality involves a strategic and systematic approach to achieving the
organization’s vision, mission, and goals. This approach, known as strategic planning or management, includes creating a
strategic plan that incorporates quality as a core component.
6. Continual Improvement: Central to TQM is the concept of continual process improvement, which drives the
organization to be both analytical and creative in enhancing competitiveness and effectiveness in meeting stakeholder
expectations.
7. Fact-Based Decision Making: TQM relies on data collection and analysis to measure performance, improve decision-
making accuracy, achieve consensus, and predict future outcomes based on historical data.
8. Effective Communications: Effective communication is crucial during organizational changes and daily operations. It
helps maintain morale and motivate employees at all levels through well-planned strategies, methods, and timely
communication.
-SmartFoodSafe, 2025

Key benefits of Total Quality Management (Teamhood, 2025)

Total Quality Management (TQM) offers numerous benefits to organizations, including improved product and service quality,
enhanced customer satisfaction, increased efficiency, and employee engagement. We selected the most important, which are:
 A stronger competitive position: TQM differentiates organizations by delivering superior products and services, giving
them a competitive edge in the market.
 Adaptability to changing market conditions and regulations: TQM fosters a culture of continuous improvement,
making organizations agile and responsive to market shifts and regulatory changes.
 Higher productivity: TQM optimizes processes and reduces waste, increasing productivity and efficiency.
 An enhanced market image: Organizations implementing TQM gain a positive reputation, building trust and confidence
in the market.
 The elimination of defects and waste: TQM emphasizes defect prevention and waste reduction, ensuring higher-quality
outputs and cost savings.
 Reduced costs and better cost management: TQM’s focus on efficiency leads to cost savings and improved resource
management.
 Higher profitability: TQM’s impact on productivity, cost reduction, and customer satisfaction contributes to increased
profitability.
  Improved focus on customer satisfaction: TQM prioritizes customer needs, resulting in products and services that
better meet customer expectations.
 Increased customer loyalty and retention: Satisfied customers are more likely to remain loyal, leading to long-term
customer relationships.
 Increased job security: TQM’s stability and success provide employees with increased job security.
 Improved employee morale: TQM empowers employees, boosting morale and motivation in the workforce.
 Enhanced shareholder and stakeholder value: TQM’s positive impact on performance and reputation benefits
stakeholders and shareholders.
 Improved and innovative processes: TQM fosters a culture of innovation, leading to the adoption of creative and
effective processes.
Most of these benefits derive directly from the eight core principles of Total Quality Management, which we explore in the next
section:

Disadvantages of Total Quality Management (Teamhood, 2025)

Besides Total Quality Management (TQM) numerous benefits, we advise also looking at and acknowledging potential
disadvantages.
Some of the disadvantages of TQM include:
 Time and Resource Intensive: Implementing TQM requires a significant commitment of time, effort, and resources,
which can strain an organization’s capacity and budget.
 Resistance to Change: Employees and stakeholders may resist the changes associated with TQM, making it challenging
to achieve full buy-in and successful implementation.
 Potential Employee Burnout: The relentless focus on continuous improvement and rigorous data-driven processes can
create high-pressure work environments, leading to employee burnout and reduced morale.
 Misinterpretation and Misapplication: Misunderstanding TQM principles or applying its techniques incorrectly can lead
to ineffective implementation and failure to achieve desired outcomes.
 Narrow Focus: Concentrating solely on TQM may result in neglecting other critical aspects of business strategy, such as
innovation or long-term strategic planning.

Advantages Put Forth by TQM

 Enhanced competitive edge  Higher profitability
 Flexibility in adapting to new market conditions  Better customer focus and increased satisfaction
and regulatory requirements  Greater customer loyalty and retention
 Increased productivity  Increased job security
 Improved market reputation  Boosted employee morale
 Elimination of defects and reduction of waste  Enhanced value for shareholders and stakeholders
 Lower costs and improved cost management  Improved and innovative processes

Implementation of the TQM System

Setting up a TQM system is a unique journey for each organization. There is no one-size-fits-all solution; rather, the strategy must
be tailored to the specific culture, management practices, and processes of the organization. Nevertheless, the following are the
basic steps involved in the generic strategy of TQM implementation:
1. Identify Company Culture and Values: Begin by identifying your company’s existing culture, core values, and systems.
Use this information to create a master plan tailored to your organization.
2. Communication of Core Values: Top management must commit to TQM, recognizing it as a strategic priority, and
communicate core values and principles that will guide the TQM efforts.
3. Assess Current State: The organization should assess its current culture, customer satisfaction, and existing quality
management systems.
4. Develop a Master Plan: Based on the assessment, a TQM master plan should be developed, outlining the steps for
implementation.
5. Identify Customer Demands: The organization must identify and prioritize customer demands, ensuring products and
services are aligned to meet these needs.
6. Map Critical Processes: Management should map out critical processes that help meet customer needs.
7. Form Improvement Teams: Teams should be formed to focus on process improvement efforts, ensuring that every part
of the organization is working towards the same quality goals.
8. Steering Committee: A steering committee should manage the momentum of the TQM effort, keeping it on track.
Managers should contribute individually through strategic planning, training, coaching, and other methods.
9. Evaluate Progress: Daily process management and standardization should take place to maintain quality. Regular
evaluation of progress is essential, with plans revised as needed.
10. Employee Awareness and Recognition: Constant awareness and feedback should be provided to employees, and a
reward/recognition process should be established to motivate and acknowledge efforts.
TQM implementation can be greatly augmented with tech-assisted, digital, or intelligent quality management solutions,
integrating real-time data analytics, IoT sensors, and AI-driven insights to monitor and control quality processes meticulously.
For example, IoT sensors can continuously track production parameters, immediately flagging deviations that could affect
product quality. AI algorithms can predict potential quality issues based on historical data, allowing preemptive actions to be
taken. Digital platforms enable centralized documentation and instant access to quality records, facilitating audits and
compliance with standards like ISO 9001.

Automated TQM workflows ensure that corrective actions are swiftly implemented and tracked, improving overall process
efficiency and reducing the risk of human error, in turn, running a holistic and proactive quality management system.

-SmartFoodSafe, 2025

History of Total Quality Management (TQM)

The history of total quality management (TQM) began initially as a term coined by the Naval Air Systems Command to describe
its Japanese-style management approach to quality improvement. An umbrella methodology for continually improving the
quality of all processes, it draws on a knowledge of the principles and practices of:
 The behavioral sciences
 The analysis of quantitative and nonquantitative data
 Economics theories
 Process analysis
Before the 1950s, approaches to quality were focused on quality control and
statistical process control.

TQM TIMELINE

1920s  Some of the first seeds of quality management were planted as the principles of scientific management
swept through U.S. industry.
 Businesses clearly separated the processes of planning and carrying out the plan, and union opposition
arose as workers were deprived of a voice in the conditions and functions of their work.
 The Hawthorne experiments in the late 1920s showed how worker productivity could be impacted by
participation.

1930s  Walter Shewhart developed the methods for statistical analysis and control of quality.

1950s  Deming, invited by JUSE, returned to Japan to teach methods for statistical analysis and control of quality to
Japanese engineers and executives, who were hungry for new ideas to help them correct serious and
persistent quality problems. This can be considered the origin of TQM.
 W. Edwards Deming taught methods for statistical analysis and control of quality to Japanese engineers and
executives.
 Joseph M. Juran taught the concepts of controlling quality and managerial breakthrough.
 Armand V. Feigenbaum’s book Total Quality Control, a forerunner for the present understanding of TQM,
was published (1951).
 Philip B. Crosby’s promotion of zero defects paved the way for quality improvement in many companies.
1968  The Japanese named their approach to total quality companywide quality control.
 The Japanese named their approach to total quality "enterprise quality control." It is around this time that
the term quality management systems arises.
 Kaoru Ishikawa’s synthesis of the philosophy contributed to Japan’s ascendancy as a quality leader.
1980s  The Baldrige National Quality Program and Malcolm Baldrige National Quality Award were established by
the U.S. Congress (1987).
 The ISO 9000 standard was first published by the International Organization for Standardization (ISO) to help
businesses ensure their products meet customer expectations and regulatory requirements (1987).
 TQM became a popular framework for improving quality and production processes across industries.
 The compatibility of TQM and Six Sigma was demonstrated by Motorola, who became one of the first
MBNQA winners.
Toda  TQM is the name for the philosophy of a broad and systemic approach to managing organizational quality. ,
y but the term has fallen out of favor as international standards for quality management have been
developed. More modern applications of its principles and processes are found in concepts like:
o Quality management systems
o Quality standards such as the ISO 9000 series
o Quality award programs such as the Deming Prize and the Malcolm Baldrige National Quality Award
 Quality standards such as the ISO 9000 series and quality award programs such as the Deming Prize and
the Malcolm Baldrige National Quality Award specify principles and processes that comprise TQM.
-Barry, 2015