Total quality management

Total Quality Management / TQM is an integrative philosophy of management for continuously improving the quality of products and processes.

TQM is based on the premise that the quality of products and processes is the responsibility of everyone involved with the creation or consumption of the products or services which are offered by an organization, requiring the involvement of management, workforce, suppliers, and customers, to meet or exceed customer expectations.

Cua, McKone, and Schroeder (2001) identified nine common TQM practices:

1. cross-functional product design
2. process management
3. supplier quality management
4. customer involvement
5. information and feedback
6. committed leadership
7. strategic planning
8. cross-functional training
9. employee involvement

Formal definition

Total Quality Management is formally defined in BS 7850-1, paragraph 3.1, as management philosophy and company practices that aim to harness the human and material resources of an organization in the most effective way to achieve the objectives of the organization.

Total quality management can be summarized as a management system for a customer-focused organization that involves all employees in continual improvement. It uses strategy, data, effective communications and involvment of all level employeess to integrate the quality discipline into the culture and activities of the organization.

•Customer-focused. The customer ultimately determines the level of quality. No matter what an organization does to foster quality improvement—training employees, integrating quality into the design process, upgrading computers or software, or buying new measuring tools—the customer determines whether the efforts were worthwhile or not.

•Total employee involvement. All employees participate in working toward common goals. Total employee commitment can only be obtained after fear has been driven from the workplace, when empowerment has occurred, and management has provided the proper environment. High-performance work systems integrate continuous improvement efforts with normal business operations. Self-managed work teams are one form of empowerment.

•Process-centered. A fundamental part of TQM is a focus on process thinking. A process is a series of steps that take inputs from suppliers (internal or external) and transforms them into outputs that are delivered to customers (again, either internal or external). The steps required to carry out the process are defined, and performance measures are continuously monitored in order to detect unexpected variations in the process.

•Integrated system. Although an organization may consist of many different functional specialties often organized into vertically structured departments, it is the horizontal processes interconnecting these functions that are the focus of TQM. ◦Micro-processes add up to larger processes, and all processes aggregate into the business processes required for defining and implementing strategy. Everyone must understand the vision, mission, and guiding principles as well as the quality policies, objectives, and critical processes of the organization. Business performance must be monitored and communicated continuously. ◦An integrated business system may be modeled after the Baldrige National Quality Program criteria and/or incorporate the ISO 9000 standards. Every organization has a unique work culture, and it is virtually impossible to achieve excellence in its products and services unless a good quality culture has been fostered where everyone works for the quality. Thus, an integrated system connects business improvement elements in an attempt to continually improve and exceed the expectations of customers, employees, and all other stakeholders.

•Strategic and systematic approach. A critical part of the management of quality is the strategic and systematic approach to achieving an organization’s vision, mission, and goals. This process, called strategic planning or strategic management, includes the formulation of a strategic plan that integrates quality as a core component.

•Continual improvement. A major thrust of TQM is continual process improvement. Continual improvement drives an organization to be both analytical and creative in finding ways to become more competitive and more effective at meeting stakeholder requirments and expectations.

• Fact-based decision making. In order to know how well an organization is performing, data on performance measures are necessary. TQM requires that an organization continually collect and analyze data in order to improve decision making accuracy, achieve consensus, and allow prediction based on past history.

•Communications. During times of organizational change, as well as part of day-to-day operation, effective communications plays a large part in maintaining morale and in motivating employees at all levels. Communications involve strategies, method, and timeliness.

These elements are considered so essential to TQM that many organizations define them, in some format, as a set of core values and principles on which the organization is to operate.

Check out Implementing Total Quality Management to learn how each of these essential Primary Elements come together to form the foundation of a successful TQM implementation.

TQM and Six Sigma

The TQM concept was developed based on the teachings of American management consultants, including W. Edwards Deming, Joseph M. Juran, and Armand V. Feigenbaum. Originally, these consultants had short-term success in the United States. Managers in Japan, however, embraced their ideas enthusiastically and even named their premier annual prize for manufacturing excellence after Dr. Deming.

Based on Statisticial Process Control (SPC) techniques, the Six Sigma management strategy was developed in 1986 to support Motorola’s drive towards reducing defects by minimizing variation in processes.

The main difference between TQM and Six Sigma is the approach. At its core, Total Quality Management (TQM) is a management approach to long-term success through continuous process improvement and customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services and the culture in which they work.

The methods for implementing this approach come from people such as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juran.

TQM and Performance for SMEs: Research Project

The concept of quality in general and Total Quality Management (TQM) in particular has been the subject of several marketing and management research insofar as it is considered as a means to understand and meet the expectations of consumers.

For Chin et al. 2001, TQM is an inclusive approach whose aim is to pursue customer satisfaction. This purpose has generated a growing interest in various sectors of economy such as manufacturing, services, Government and education in different countries around the world.

See also

• Total quality control
• Seven management and planning tools
• Quality management framework
• Test driven development
• TQM dans les PME

Further reading

• Deming, W. Edwards. Out of the Crisis (1986)
• Ishikawa, Kaoru. What is Total Quality Control? The Japanese Way (1985)
• Feigenbaum, A.V. Total Quality Control (1991)
• Juran, J.M. Juran on Leadership for Quality: An Executive Handbook (1989)
• Crosby, Philip B. (1989). Let's Talk Quality: 96 Questions You Always Wanted to ask Phil Crosby (1st ed.). McGraw-Hill. p. 208. ISBN 978-0-07-014565-8.