Total Quality Management (TQM) is a comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback. TQM requirements may be defined separately for a particular organization or may be in adherence to established standards, such as the International Organization for Standardization's ISO 9000 series. TQM can be applied to any type of organization; it originated in the manufacturing sector and has since been adapted for use in almost every type of organization imaginable, including schools, highway maintenance, hotel management, and churches.
As a current focus of e-business, TQM is based on quality management from the customer's point of view. TQM processes are divided into four sequential categories: plan, do, check, and act (the PDCA cycle). Here, 'plan' is the step that involves identifying the problem, 'do' is the development and implementation of a solution, 'check' is the monitoring of the implemented solution, and 'act' is the adjustment of the solution based on the results found during the 'check' phase.
History of Total Quality Management
The concept of Total Quality Management, or TQM, has its roots in the teachings of an array of management gurus who have developed philosophies on business management over the past hundred years. These include Frederick Taylor, who introduced shop-floor time studies and the concept of a 'standard method'; Frank and Lillian Gilbreth, who developed motion studies to improve efficiency; and Henry Ford, who established a comprehensive system of changeable parts, work-staging, and quality control.
However, the person most credited with coining the term and developing the associated philosophy is W. Edwards Deming. Deming's teachings and philosophy are clearly expressed in his famous '14 Points for Management', a blueprint for management that he believes will increase quality and decrease costs in organizations.
Deming's 14 Points for Management
Deming's 14 Points for Management is a set of management practices that aim to increase the efficiency and effectiveness of a business or organization. The points include creating a constancy of purpose for improving products and services, adopting the new philosophy, ceasing dependence on inspection to achieve quality, and moving towards a single supplier for any one item, among others.
Deming's philosophy emphasizes teamwork, employee involvement, and a systematic approach to problem-solving to reach the goals of the organization. It is a comprehensive philosophy which, when fully adopted, touches every aspect of the organization.
Principles of Total Quality Management
There are several principles of Total Quality Management that are typically espoused by the leading quality gurus mentioned above. These principles include customer focus, leadership, involvement of people, process approach, system approach to management, continual improvement, factual approach to decision making, and mutually beneficial supplier relationships.
These principles are explained in detail in the sections below.
Customer Focus
The primary focus of any organization should be to meet and exceed the customer's expectations and needs. This principle of TQM calls for understanding the customer's definition of quality and designing processes that can meet those expectations consistently.
Organizations must understand who their customers are, what they want, and develop products and services that meet those desires. Customer satisfaction should be the primary goal of any business.
Leadership
Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and to instill values that guide subordinates. For TQM to be successful in the business, the supervisor must be committed in leading his employees. A supervisor must understand TQM, believe in it and then demonstrate their belief and commitment through their daily practices of TQM.
The leadership style in TQM is more facilitative than directive. The TQM leader has a vision for the organization’s future that is understood and shared by all organization members. In other words, the leader in TQM is the role model for values and ethics in the organization.
Involvement of People
In a TQM organization, involvement of people at all levels is a critical element. Everyone must be involved in the improvement process. This includes employees, suppliers, and even customers. Each person in the organization has a role in improving the quality of products or services.
Employees are encouraged to take more responsibility, communicate more effectively, act creatively, and innovate. As people are recognized as the company’s most important resource, they are actively encouraged to take an active role in improving the processes within the organization.
Benefits of Total Quality Management
Implementing TQM in an organization has numerous benefits. These benefits can be divided into three categories: benefits to the organization, benefits to the employees, and benefits to the customers.
Benefits to the organization include improved competitiveness, profitability, and customer satisfaction. Benefits to the employees include increased job security, job satisfaction, and morale. Benefits to the customers include improved quality and service, and increased value for money.
Benefits to the Organization
For the organization, the benefits of implementing TQM include improved competitiveness and profitability. This is achieved through the reduction of waste and the improvement of efficiency and productivity. The organization also benefits from a better public image and reputation, as quality products and services are more likely to be recognized and rewarded in the marketplace.
Another benefit to the organization is the ability to make better, more informed decisions. This is because TQM involves the use of facts and data in decision-making processes, which leads to more objective and rational decisions.
Benefits to the Employees
For the employees, the benefits of TQM include increased job security and job satisfaction. This is because TQM leads to improvements in productivity and efficiency, which can lead to increased profitability and the long-term success of the organization. This in turn leads to increased job security for employees.
Furthermore, TQM encourages the involvement and participation of all employees in the improvement process. This can lead to increased job satisfaction, as employees feel that their contributions are valued and recognized.
Benefits to the Customers
For the customers, the benefits of TQM include improved quality and service. This is because TQM focuses on meeting and exceeding customer expectations. This leads to improved customer satisfaction and loyalty, which can lead to repeat business and referrals.
Furthermore, TQM leads to increased value for money for the customer. This is because TQM focuses on reducing waste and improving efficiency, which can lead to lower costs and better value for the customer.
Challenges in Implementing Total Quality Management
While TQM has many benefits, implementing it in an organization is not without challenges. These challenges can be divided into three categories: challenges related to the organization's culture, challenges related to the organization's structure, and challenges related to the organization's systems and processes.
Challenges related to the organization's culture include resistance to change, lack of leadership commitment, and lack of employee involvement. Challenges related to the organization's structure include lack of a clear vision and strategy, lack of a quality structure, and lack of a supportive organizational structure. Challenges related to the organization's systems and processes include lack of a systematic approach to problem-solving, lack of a process orientation, and lack of a focus on continuous improvement.
Challenges Related to the Organization's Culture
One of the main challenges in implementing TQM is resistance to change. This is a common challenge in any change management initiative. People are naturally resistant to change, especially when they perceive that the change may have negative consequences for them. Therefore, it is important to communicate the benefits of TQM to all stakeholders and to involve them in the change process.
Lack of leadership commitment is another challenge. For TQM to be successful, it requires the full commitment and support of top management. If top management does not demonstrate their commitment to TQM, it is unlikely that the rest of the organization will follow.
Challenges Related to the Organization's Structure
Lack of a clear vision and strategy is a challenge in implementing TQM. Without a clear vision and strategy, it is difficult to align the organization's resources and efforts towards achieving the goals of TQM. Therefore, it is important to develop a clear vision and strategy for TQM and to communicate it to all stakeholders.
Lack of a quality structure is another challenge. A quality structure refers to the organizational structure and resources dedicated to the management of quality. Without a quality structure, it is difficult to manage and coordinate the various activities related to quality management.
Challenges Related to the Organization's Systems and Processes
Lack of a systematic approach to problem-solving is a challenge in implementing TQM. TQM requires a systematic approach to problem-solving, which involves identifying problems, analyzing their causes, developing solutions, implementing the solutions, and monitoring the results. Without a systematic approach to problem-solving, it is difficult to identify and solve quality problems effectively.
Lack of a process orientation is another challenge. TQM requires a process orientation, which involves focusing on the processes that produce the products or services, rather than just the products or services themselves. Without a process orientation, it is difficult to identify and eliminate the sources of quality problems.
Conclusion
In conclusion, Total Quality Management is a comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback. It has its roots in the teachings of an array of management gurus and has been adapted for use in almost every type of organization imaginable.
While TQM has many benefits, implementing it in an organization is not without challenges. These challenges can be overcome with the right approach and commitment. Despite these challenges, the benefits of TQM far outweigh the challenges, making it a worthwhile investment for any organization seeking to improve its quality and efficiency.
