An organizations’ success often depends upon the quality of goods and services they provide. Quality is one of the primary factors a customer considers while purchasing the product or service. It is the quality that gives organizations an edge in the market. In various cases, it has been observed that the importance of quality is something that goes a long way in creating a brand. One of the key things to note when discussing quality is that it is not just limited to products, it is rather applicable to all management and service sectors. It applies to planning, organizing, controlling, etc. These also require quality standards.
Total Quality Management is a continuous process of detecting and reducing or eliminating errors, streamlining the process of management, improving the customer experience and ensuring that employees are up to mark with the training of the product or service. It focuses on ensuring that internal guidelines and process standards are established and are being followed as the quality is reflective of both internal and industry standards.
Total Quality Management (TQM) was developed by American management consultants like Edward Deming and Joseph Juran. Their research helped Japanese industries rebuild their economy after World War II. While this was mostly applicable in the manufacturing sector, its principles were eventually applied to all industries and sectors. Unlike earlier times where there used to be one quality department for all sectors, today we have independent quality departments and standards set. Some of which are recognized and widely referred to such as the ISO standards.
Principles of Total Quality Management
Total Quality Management strives to ensure all associated employees work towards the common goals of improving product or service quality as well as improving the procedures that are in place for production. This helps an organization improve its internal functioning and customer satisfaction. Below are some basic principles of Total Quality Management:
Management of Quality is Possible
Quality is one factor which is totally in control of the organization or enterprise producing the goods or service. Unlike external factors, quality is something an organization manages. While we know that quality is a manageable aspect, this fact changes when large scale production comes into the picture. However, having or adapting to an efficient process helps an organization manage quality without compromise.
Processes are the Problem, not People
When people understand what to do, how to do and obtain feedback on their performance, they fully strive to work for the organization’s progress and benefits. When this is not working, management must not focus on hiring more people rather analyze where the problem is lying and correct the process and ensure all employees are well trained with the processes or standards set forth.
Look for the Cure instead of Treating Symptoms
Often when processes are looked at, short term goals are paid more attention to rather than long term goals. The actual problem is addressed at a later stage or gets ignored. Managers should instead look at the problem and identify the root cause of it and implement corrective measures in the process by removing the source of the problem itself.
Each Employee is Responsible for Quality Management
Total Quality Management or TQM is a collective effort of the entire organization in making sure the quality standards are met. Structures, systems and technology by themselves do not provide quality; it is the employees who take full responsibility and follow the standards with integrity. The greater the involvement of people, the greater the customer satisfaction will be.
Quality Improvements must keep Happening
Quality management is a continual improvement process and a permanent process that happens all the time. The International Organization for Standardization (ISO) 9000 series of standards believe that organizations can continually improve their performance. Continued improvement in quality and general standards helps achieve a benchmark in the market and return earns rewards in the form of increased goodwill by word of mouth and increased demand for the product or service.
Quality is Measurable
TQM recognizes quality as measurable and believes it can be quantified in terms of statistical data. This data is used to support quality efforts in simplification of a process and bringing product variation. The quality can be improved if we are aware and clear about where we stand and what are the quality goals we aspire to achieve.
Customer Satisfaction
Bringing the best of what really matters to the customer should be the primary objective of the organization while setting quality standards. Customer satisfaction doesn’t only limit to external customers, it also applies to internal colleagues to whom a certain good, services or information is provided. There is a traditional belief or point of view which says ‘Customer is the King’ and processes and products must be established with one thing in mind that is customer satisfaction. In order to succeed in global competition, companies have started to adapt to the attitude of delighting the customer.
FAQs on Total Quality Management: Key Concepts
1. What is Total Quality Management (TQM)?
Total Quality Management (TQM) is a management philosophy where all members of an organisation continuously work to improve processes, products, services, and the culture in which they operate. The primary goal of TQM is to achieve long-term success through customer satisfaction by ensuring quality in all organisational activities.
2. What are the core principles of Total Quality Management?
TQM is built on several key principles that guide an organisation's approach to quality. The main principles include:
- Customer Focus: The primary goal is to meet and exceed customer expectations.
- Total Employee Involvement: All employees, from top management to frontline workers, participate in achieving quality goals.
- Process-Centred Approach: TQM focuses on managing and improving processes to ensure consistent output.
- Continuous Improvement (Kaizen): The organisation constantly seeks small, incremental improvements in all areas.
- Strategic and Systematic Approach: Quality is integrated into the organisation's strategic planning.
- Fact-Based Decision Making: Decisions are based on data and analysis rather than intuition.
- Strong Leadership: Management provides clear vision, direction, and support for quality initiatives.
3. What are the main benefits of implementing TQM in a business?
Implementing TQM can lead to significant advantages for a business. Key benefits include improved product quality, enhanced customer satisfaction and loyalty, reduced costs due to fewer defects and less waste, and increased employee morale and engagement. It also strengthens the company's competitive position and improves its market image.
4. What is the PDCA cycle and what is its importance in TQM?
The PDCA cycle, also known as the Deming Cycle, is a fundamental model for continuous improvement in TQM. It consists of four stages:
- Plan: Identify a problem or an opportunity for improvement and plan a change.
- Do: Implement the change on a small scale to test it.
- Check: Analyse the results to see if the change had the desired effect.
- Act: If the change was successful, implement it on a wider scale. If not, begin the cycle again with a new plan.
Its importance lies in providing a simple yet effective framework for problem-solving and driving continuous improvement.
5. How does Total Quality Management differ from traditional Quality Control?
TQM differs from traditional Quality Control (QC) in its approach and scope. QC is a reactive process that focuses on inspecting products at the end of the production line to find defects. In contrast, TQM is a proactive philosophy that aims to prevent defects by improving processes and involving everyone in the organisation. While QC is the responsibility of a specific department, TQM makes quality the responsibility of every employee.
6. Why is 'continuous improvement' so critical to the success of TQM?
Continuous improvement, or 'Kaizen', is critical because markets, technologies, and customer expectations are constantly changing. A one-time quality fix is not enough. By embedding a culture of continuous improvement, an organisation ensures it remains adaptable, competitive, and efficient. It prevents complacency and drives the entire system forward by making small, ongoing enhancements to processes and products, leading to long-term sustainable success.
7. Can you give a real-world example of TQM in a service industry like a hospital?
Yes, TQM is highly effective in service industries. For example, a hospital can implement TQM to improve patient care. It might use a process-centred approach to reduce patient waiting times by analysing and streamlining the admission and discharge processes. Staff at all levels, from doctors to administrative staff, could be involved in identifying ways to reduce errors in medication administration. By collecting patient feedback (customer focus) and using that data to make decisions, the hospital can continuously improve the quality of its healthcare services and patient satisfaction.
