Total Quality Management (TQM)

• Total Quality Management (TQM) is designed to prevent errors and poor-quality products.
• TQM involves organizing the business to investigate the manufacturing process at every stage.
• Success in TQM relies on superior organization within the company.
• Every department, activity, and individual must account for quality at all times in TQM.

Quality Chains

• Stresses the operation of quality chains where a series of suppliers and customers exists.
• In a quality chain, a complete chain requires each supplier to satisfy its customer.
• Failure at any point in the quality chain creates problems like delays in production.

Company Policy, Accountability, and Empowerment

• Improvements in quality require a company-wide quality policy.
• TQM must start from the top with senior executives and extend to every employee.
• Employees need to be committed and take pride in their job.
• Lack of commitment, particularly from the top, can cause problems.
• TQM stresses the importance of individual roles and accountability for performance.
• Employees may also be empowered to make decisions related to their work.

Control

• Consumer needs are satisfied when the business controls the factors affecting product quality.
• These factors may be human, administrative, or technical.
• Control requires that materials, equipment, and tasks are used in a consistent manner.
• Regular audits must be conducted to check quality.
• Information should be fed back from the customer to the operator/producer.
• Information should also be fed back from the operator to the supplier of inputs.
• Quality audits and reviews lead to suggestions for improvements.

Monitoring the Process

• TQM relies on monitoring the business process to find possible improvements.
• Statistical Process Control (SPC) involves collecting data related to process performance.
• SPC data is presented in diagrams, charts, and graphs.
• SPC aims to reduce variability, which is often the cause of quality problems.
• Variations in products, delivery times, methods, materials, and people's attitudes can occur.
• Statistical data can reveal issues, such as worker attitudes affecting output.

Teamwork

• TQM emphasizes teamwork as the most effective problem-solving approach.
• Teamwork improves employee motivation.
• Teamwork allows problems across departments to be better addressed.
• Teamwork ensures more problems can be tackled.
• Team "ideas" are more likely to be used than individual one.
• Teamwork builds trust, improves communication and cooperation, and develops a culture of collaboration.
• Sharing information and ideas is imperative.

Consumer Views

• Firms using TQM must be committed to their customers and respond to changing needs.
• Information must be gathered regularly, with clear communication channels for customers.
• Consumers can be influential in setting quality standards.
• Consumer feedback, is used to identify strengths and weaknesses.
• This information is used to monitor and upgrade quality standards.

Zero Defects

• Aims to ensure every product manufactured is free from defects.
• Guaranteeing zero defects can improve a business's reputation.

Quality Circles

• Emphasizes teamwork in a business.
• A steering committee should be set up to manage the whole quality circle programme.
• A senior manager should ideally chair the committee, displaying commitment.
• At least one person on the committee must be accountable for the programme.
• Team leaders should be properly trained.

Using TQM

• TQM helps companies focus on customer needs and supplier relationships.
• TQM helps companies achieve quality in all aspects of business.
• Critically analyse all processes to remove waste and inefficiencies.
• Find improvements and develop measures of performance.
• Develop a team approach to problem solving.
• Develop effective procedures for communication and acknowledgement of work.
• TQM helps companies continually review processes to develop a strategy of constant improvement.

Problems with TQM

• There will be training and development costs of the new system.
• TQM will only work if there is commitment from the entire business.
• There will be bureaucracy and documents, and regular audits are needed.
• This bureaucracy may be a problem for small firms.
• Stress is placed on the process and not the product.