Total Quality Management - Meaning and Important Concepts

Quality refers to a parameter which decides the superiority or inferiority of a product or

service. Quality can be defined as an attribute which differentiates a product or service from its
competitors. Quality plays an essential role in every business. Business marketers need to
emphasize on quality of their brands over quantity to survive the cut throat competition.

Why would a customer come to you if your competitor is also offering the same product? The
difference has to be there in quality. Your brand needs to be superior for it to stand apart from
the rest.

Total Quality management is defined as a continuous effort by the management as well

as employees of a particular organization to ensure long term customer loyalty and
customer satisfaction. Remember, one happy and satisfied customer brings ten new
customers along with him whereas one disappointed individual will spread bad word of mouth
and spoil several of your existing as well as potential customers.

You need to give something extra to your customers to expect loyalty in return. Quality can be
measured in terms of durability, reliability, usage and so on. Total quality management is a
structured effort by employees to continuously improve the quality of their products and services
through proper feedbacks and research. Ensuring superior quality of a product or service is not
the responsibility of a single member.

Every individual who receives his/her paycheck from the organization has to contribute equally
to design foolproof processes and systems which would eventually ensure superior quality of
products and services. Total Quality management is indeed a joint effort of management, staff
members, workforce, suppliers in order to meet and exceed customer satisfaction level. You
cant just blame one person for not adhering to quality measures. The responsibility lies on the
shoulder of everyone who is even remotely associated with the organization.

W. Edwards Deming, Joseph M. Juran, and Armand V. Feigenbaum jointly developed the
concept of total quality management. Total Quality management originated in the manufacturing
sector, but can be applied to almost all organizations.

Total quality management ensures that every single employee is working towards the
improvement of work culture, processes, services, systems and so on to ensure long
term success.

Total Quality management can be divided into four categories:

Plan
Do
Check
Act

Also referred to as PDCA cycle.

Planning Phase

Planning is the most crucial phase of total quality management. In this phase employees have
to come up with their problems and queries which need to be addressed. They need to come up
with the various challenges they face in their day to day operations and also analyze the
problems root cause. Employees are required to do necessary research and collect relevant
data which would help them find solutions to all the problems.

Doing Phase

In the doing phase, employees develop a solution for the problems defined in planning phase.
Strategies are devised and implemented to overcome the challenges faced by employees. The
effectiveness of solutions and strategies is also measured in this stage.

Checking Phase

Checking phase is the stage where people actually do a comparison analysis of before and after
data to confirm the effectiveness of the processes and measure the results.

Acting Phase

In this phase employees document their results and prepare themselves to address other
problems.

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Total Quality Management TQM

What is 'Total Quality Management - TQM'

Total Quality Management (TQM) is the continuous process of reducing or eliminating errors in
manufacturing, streamlining supply chain management, improving the customer experience,
and ensuring that employees are up-to-speed with their training. Total quality management aims
to hold all parties involved in the production process accountable for the overall quality of the
final product or service.

BREAKING DOWN 'Total Quality Management - TQM'

TQM was developed by William Deming, a management consultant whose work had great
impact on Japanese manufacturing. While TQM shares much in common with the Six
Sigma improvement process, it is not the same as Six Sigma. TQM focuses on ensuring that
internal guidelines and process standards reduce errors, while Six Sigma looks to reduce
defects.

Total Quality Management (TQM) is a structured approach to overall organizational

management. The focus of the process is to improve the quality of an organizations outputs,
including goods and services, through continual improvement of internal practices. The
standards set as part of the TQM approach can reflect both internal priorities and any industry
standards currently in place. Industry standards can be defined at multiple levels, and may
include adherence to various laws and regulations governing the operation of the particular
business. Industry standards can also include the production of items to an understood norm,
even if the norm is not backed by official regulations.
Primary Principles of Total Quality Management

TQM is considered a customer-focused process and aims for continual improvement of

business operations. It strives to ensure all associated employees work toward the common
goals of improving product or service quality, as well as improving the procedures that are in
place for production. Special emphasis is put on fact-based decision making, using
performance metrics to monitor progress. High levels of organizational communication are
encouraged, for the purpose of maintaining employee involvement and morale.

Industries Using Total Quality Management

While TQM originated in the manufacturing sector, its principles can be applied to a variety of
organizations. With focus on long-term change over short-term goals, it is designed to provide a
cohesive vision for systemic change. With this in mind, TQM is in many industries, including, but
not limited to, manufacturing, banking and finance, and medicine.

The techniques can be applied to all departments within an organization as well. This helps
ensure all employees are working toward the goals set forth for the company, improving function
in each area. Involved departments can include administration, marketing, production and
employee training.

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Introduction and Implementation of Total Quality Management (TQM)

Total Quality Management is a management approach that originated in the 1950s and has
steadily become more popular since the early 1980s. Total Quality is a description of the
culture, attitude and organization of a company that strives to provide customers with products
and services that satisfy their needs. The culture requires quality in all aspects of the companys
operations, with processes being done right the first time and defects and waste eradicated from
operations.

Total Quality Management, TQM, is a method by which management and employees can
become involved in the continuous improvement of the production of goods and services. It is a
combination of quality and management tools aimed at increasing business and reducing losses
due to wasteful practices.

Some of the companies who have implemented TQM include Ford Motor Company, Phillips
Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.1

TQM Defined

TQM is a management philosophy that seeks to integrate all organizational functions

(marketing, finance, design, engineering, and production, customer service, etc.) to focus on
meeting customer needs and organizational objectives.

TQM views an organization as a collection of processes. It maintains that organizations must

strive to continuously improve these processes by incorporating the knowledge and experiences
of workers. The simple objective of TQM is Do the right things, right the first time, every time.
TQM is infinitely variable and adaptable. Although originally applied to manufacturing
operations, and for a number of years only used in that area, TQM is now becoming recognized
as a generic management tool, just as applicable in service and public sector organizations.
There are a number of evolutionary strands, with different sectors creating their own versions
from the common ancestor. TQM is the foundation for activities, which include:

Commitment by senior management and all employees

Meeting customer requirements
Reducing development cycle times
Just in time/demand flow manufacturing
Improvement teams
Reducing product and service costs
Systems to facilitate improvement
Line management ownership
Employee involvement and empowerment
Recognition and celebration
Challenging quantified goals and benchmarking
Focus on processes / improvement plans
Specific incorporation in strategic planning
This shows that TQM must be practiced in all activities, by all personnel, in manufacturing,
marketing, engineering, R&D, sales, purchasing, HR, etc.2

Principles of TQM

The key principles of TQM are as following:3

Management Commitment
o Plan (drive, direct)
o Do (deploy, support, participate)
o Check (review)
o Act (recognize, communicate, revise)
Employee Empowerment
o Training
o Suggestion scheme
o Measurement and recognition
o Excellence teams
Fact Based Decision Making
o SPC (statistical process control)
o DOE, FMEA
o The 7 statistical tools
o TOPS (Ford 8D team-oriented problem solving)
Continuous Improvement
o Systematic measurement and focus on CONQ
o Excellence teams
o Cross-functional process management
o Attain, maintain, improve standards
Customer Focus
o Supplier partnership
o Service relationship with internal customers
o Never compromise quality
o Customer driven standards
The Concept of Continuous Improvement by TQM

TQM is mainly concerned with continuous improvement in all work, from high level strategic
planning and decision-making, to detailed execution of work elements on the shop floor. It
stems from the belief that mistakes can be avoided and defects can be prevented. It leads to
continuously improving results, in all aspects of work, as a result of continuously improving
capabilities, people, processes, technology and machine capabilities.

Continuous improvement must deal not only with improving results, but more importantly with
improving capabilities to produce better results in the future. The five major areas of focus for
capability improvement are demand generation, supply generation, technology, operations and
people capability.

A central principle of TQM is that mistakes may be made by people, but most of them are
caused, or at least permitted, by faulty systems and processes. This means that the root cause
of such mistakes can be identified and eliminated, and repetition can be prevented by changing
the process.1
There are three major mechanisms of prevention:

1. Preventing mistakes (defects) from occurring (mistake-proofing or poka-yoke).

2. Where mistakes cant be absolutely prevented, detecting them early to prevent them being
passed down the value-added chain (inspection at source or by the next operation).
3. Where mistakes recur, stopping production until the process can be corrected, to prevent
the production of more defects. (stop in time).

Implementation Principles and Processes

A preliminary step in TQM implementation is to assess the organizations current reality.

Relevant preconditions have to do with the organizations history, its current needs, precipitating
events leading to TQM, and the existing employee quality of working life. If the current reality
does not include important preconditions, TQM implementation should be delayed until the
organization is in a state in which TQM is likely to succeed.

If an organization has a track record of effective responsiveness to the environment, and if it has
been able to successfully change the way it operates when needed, TQM will be easier to
implement. If an organization has been historically reactive and has no skill at improving its
operating systems, there will be both employee skepticism and a lack of skilled change agents.
If this condition prevails, a comprehensive program of management and leadership
development may be instituted. A management audit is a good assessment tool to identify
current levels of organizational functioning and areas in need of change. An organization should
be basically healthy before beginning TQM. If it has significant problems such as a very
unstable funding base, weak administrative systems, lack of managerial skill, or poor employee
morale, TQM would not be appropriate.5
However, a certain level of stress is probably desirable to initiate TQM. People need to feel a
need for a change. Kanter (1983) addresses this phenomenon be describing building blocks
which are present in effective organizational change. These forces include departures from
tradition, a crisis or galvanizing event, strategic decisions, individual prime movers, and action
vehicles. Departures from tradition are activities, usually at lower levels of the organization,
which occur when entrepreneurs move outside the normal ways of operating to solve a problem.
A crisis, if it is not too disabling, can also help create a sense of urgency which can mobilize
people to act. In the case of TQM, this may be a funding cut or threat, or demands from
consumers or other stakeholders for improved quality of service. After a crisis, a leader may
intervene strategically by articulating a new vision of the future to help the organization deal with
it. A plan to implement TQM may be such a strategic decision. Such a leader may then become
a prime mover, who takes charge in championing the new idea and showing others how it will
help them get where they want to go. Finally, action vehicles are needed and mechanisms or
structures to enable the change to occur and become institutionalized.8

Steps in Managing the Transition

Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition to a new
system such as TQM: identifying tasks to be done, creating necessary management structures,
developing strategies for building commitment, designing mechanisms to communicate the
change, and assigning resources.

Task identification would include a study of present conditions (assessing current reality, as
described above); assessing readiness, such as through a force field analysis; creating a model
of the desired state, in this case, implementation of TQM; announcing the change goals to the
organization; and assigning responsibilities and resources. This final step would include
securing outside consultation and training and assigning someone within the organization to
oversee the effort. This should be a responsibility of top management. In fact, the next step,
designing transition management structures, is also a responsibility of top management. In fact,
Cohen and Brand (1993) and Hyde (1992) assert that management must be heavily involved as
leaders rather than relying on a separate staff person or function to shepherd the effort. An
organization wide steering committee to oversee the effort may be appropriate. Developing
commitment strategies was discussed above in the sections on resistance and on visionary
leadership.6
To communicate the change, mechanisms beyond existing processes will need to be
developed. Special all-staff meetings attended by executives, sometimes designed as input or
dialog sessions, may be used to kick off the process, and TQM newsletters may be an effective
ongoing communication tool to keep employees aware of activities and accomplishments.

Management of resources for the change effort is important with TQM because outside
consultants will almost always be required. Choose consultants based on their prior relevant
experience and their commitment to adapting the process to fit unique organizational needs.
While consultants will be invaluable with initial training of staff and TQM system design,
employees (management and others) should be actively involved in TQM implementation,
perhaps after receiving training in change management which they can then pass on to other
employees. A collaborative relationship with consultants and clear role definitions and
specification of activities must be established.

In summary, first assess preconditions and the current state of the organization to make sure
the need for change is clear and that TQM is an appropriate strategy. Leadership styles and
organizational culture must be congruent with TQM. If they are not, this should be worked on or
TQM implementation should be avoided or delayed until favorable conditions exist.

Remember that this will be a difficult, comprehensive, and long-term process. Leaders will need
to maintain their commitment, keep the process visible, provide necessary support, and hold
people accountable for results. Use input from stakeholder (clients, referring agencies, funding
sources, etc.) as possible; and, of course, maximize employee involvement in design of the
system.7
Always keep in mind that TQM should be purpose driven. Be clear on the organizations vision
for the future and stay focused on it. TQM can be a powerful technique for unleashing employee
creativity and potential, reducing bureaucracy and costs, and improving service to clients and
the community.

Conclusion

TQM encoureges participation amongst shop floor workers and managers. There is no single
theoretical formalization of total quality, but Deming, Juran and Ishikawa provide the core
assumptions, as a discipline and philosophy of management which institutionalizes planned
and continuous improvement and assumes that quality is the outcome of all activities that
take place within an organization; that all functions and all employees have to participate in the
improvement process; that organizations need both quality systems and a quality culture.

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WHAT IS TOTAL QUALITY MANAGEMENT (TQM)?

TQM describes a management approach to longterm success through customer satisfaction.

In a TQM effort, all members of an organization participate in improving processes, products,
services, and the culture in which they work.

Total Quality Management TQM, also known as total productive maintenance, describes a
management approach to long-term success through customer satisfaction. In a TQM effort, all
members of an organization participate in improving processes, products, services, and the
culture in which they work.

Total Quality Management Principles: The 8 Primary Elements of TQM

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, and effective communications to integrate the quality discipline into the culture and
activities of the organization. Many of these concepts are present in modern Quality
Management Systems, the successor to TQM. Here are the 8 principles of total quality
management:
1. Customer-focused
The customer ultimately determines the level of quality. No matter what an organization does to
foster quality improvementtraining employees, integrating quality into the design process,
upgrading computers or software, or buying new measuring toolsthe customer determines
whether the efforts were worthwhile.
2. 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.
3. 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 variation.
4. 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. Thus, an integrated system connects
business improvement elements in an attempt to continually improve and exceed the
expectations of customers, employees, and other stakeholders.
5. Strategic and systematic approach
A critical part of the management of quality is the strategic and systematic approach to
achieving an organizations 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.
6. 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 expectations.
7. 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.
8. 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. The
methods for implementing this approach come from the teachings of such quality leaders
as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa, and Joseph
M. Juran.

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Pengertian TQM (Total Quality Management)

TQM merupakan kependekan dari Total Quality Management, merupakan perkembangan lebih
lanjut dari peningkatan kualitas yang dibicarakan oleh Deming. TQM diperkirakan muncul pada
tahun 1980 dari Jepang yang menerapkan peningkatan kualitas secara terus-menerus. TQM
terus berkembang dan pada tahun 1990 telah banyak diadaptasi oleh banyak perusahaan.

Filosofi dari TQM atau total quality management adalah selalu meningkatkan kualitas barang
dan jasa untuk meningkatkan kepuasan pelanggan sebagai strategi jangka panjang perusahaan
dalam bersaing dan bertumbuh. Peningkatan kualitas harus dikerjakan seluruh lini perusahaan
mulai dari pembelian barang baku, proses produksi, bagian keuangan , bagian sumber daya
manusia dan lain-lain.

Pemikiran-pemikiran dalam TQM adalah

1. Kualitas dapat dan harus dikendalikan

2. Kualitas versi pelanggan harus diperhatikan supaya kepuasan pelanggan terjaga.
3. Manajeman harus emberi kepemimpinan dalam melakukan manajemen mutu.
4. Terus menerus melakukan peningkatan kualitas sebagai strategi perusahaaan. Tentu ini
melibatkan perencanaan, eksekusi dan evaluasi secara terus menerus.
5. Peningkatan kualitas adalah tanggung jawab setiap karyawan.
Karyawan harus diberikan training dan pendidikan supaya kualitas terus-menerus
meningkat.
6. Masalah harus sedapat mungkin dicegah, kurangi proses perbaikan
7. Standar kualitas adalah tanpa cacat
8. Kualitas harus bisa diukur

TQM ini merupakan generasi berikutnya dari QMS (Quality Management System) seperti yang
telah kita bahas sebelumnya. TQM ini kemudian berkembang dan melahirkan sertifikasi ISO
untuk manajemen kualitas.