TQM: Definitions and Core Concepts

TQM Definitions and Concepts

• TQM is a management philosophy integrating all organizational functions to meet customer needs and organizational objectives.
• The philosophy of TQM requires a never-ending journey and a totally integrated effort to gain a competitive edge through continuous improvements.
• TQM integrates efforts to enhance quality performance at every organizational level.
• Total quality involves everyone and all activities within the company.
• Quality is conforming to requirements and meeting customer needs.
• Quality can and must be actively managed.
• TQM is viewed as a continuous way of life and a philosophy for perpetual improvement in all activities.
• All members must participate in improving processes, products, services, and organizational culture.
• TQM aims to achieve and sustain long-term organizational success by encouraging employee feedback, meeting customer expectations, respecting societal values, and following governmental regulations.
• Product, process, system, people, and leadership make up the five pillars of TQM.

The Total Quality System

• TQM is a management system that focuses on meeting the needs of owners or customers by providing quality services at a value-based cost.
• TQM emphasizes continuous improvement in all operations.
• TQM recognizes that everyone in the organization has internal or external owners or customers.
• TQM views an organization as an internal system with a common aim.
• TQM focuses on how tasks are accomplished rather than just what tasks are accomplished.
• Teamwork is a key element.
• Introducing initiatives without a basic quality system can result in less than optimum benefits.
• Ongoing efforts like product quality, processes, morale, and customer needs must run like clockwork
• The five pillars of TQM are product, process, system, people, and leadership.

The Evolution of TQM

• TQM concepts are rooted in work developed over centuries.
• The simple inspection-based system of quality management was where a product was compared with a standard.
• World War II brought about the first revolutionary change with a system of quality control.
• Quality was achieved through control systems that included product testing and documentation during the Second World War.
• The quality assurance stage shifted the focus from product to systems quality.
• Quality manuals, and advanced document control were typical in the quality assurance stage.
• Quality assurance was a preventive measure.
• The fourth development stage brought Total Quality Management.
• Typical characteristics of a TQM environment included a clear vision, minimal interdepartmental barriers, staff training, positive customer relations, continuous improvement, and company-wide emphasis on quality.

Principles of Total Quality Management

• These are a set of comprehensive and fundamental rules and beliefs.
• They lead and operate an organization by continually improving performances.
• This is achieved by focusing on customers.
• This is achieved by addressing all stakeholder needs.
• Key principles of TQM are management commitment which entails planning, executing, reviewing and acting.
• Key principles of TQM also involves employee empowerment achieved through training, suggestion schemes, measurement and recognition, and excellent teams
• Fact-based decision making is key through statistical process control, design of experiments, failure mode and effect analysis, the seven statistical tools and team-oriented problem solving
• Continual improvement requires systematic measurement, excellent teams, cross-functional process management, and striving to attain, maintain, and improve standards.
• Customer focus involves supplier partnership, service relationships with internal customers, never compromising quality, and adhering to customer-driven standards.

Customer-Focused Organization

• Customer-focused organizations depend on understanding customers current and future needs.
• Customer-focused organizations also must meet expectations while striving to exceed those expectations.
• A customer-focused organization also produces needed products and services to provide satisfaction.

Leadership

• An organization's senior leaders are critical to quality values, expectations and creating a customer-oriented approach.
• Senior leaders facilitate strategies, systems, and methods for excellence which should guide all activities and decisions of the organization.
• The senior leaders must commit to developing the workforce, and should encourage participation, learning, innovation and creativity by all.
• The senior leaders need to serve as role models while reinforcing values and expectations, and building leadership and initiative throughout the organization.

Involvement of People

• Involving people at all levels enables full utilization the organization's benefit.
• This is achieved by providing a good corporate work culture, interesting work system and environment, and building capabilities of people to perform the assigned tasks.

Continuous Improvement

• The permanent objective of the organization is that it should continuously improve performance while addressing the needs of all interested parties.

Key Elements of TQM

• Ethics, integrity, trust, leadership, teamwork, training, communication, and recognition are key.

Quality Control Circles (QCC)

• A QCC is a small group of staff working together to contribute to the improvement of the enterprise, to respect humanity and to build a cheerful workgroup through the development of the staff's infinite potential.
• A QCC team of people usually come from the same work area, meet voluntarily on a regular basis.
• A QCC seeks to identify, investigate, analyze, and solve work-related problems.
• QCC circles contribute to improvement, respect humanity, build work areas and lives, and give maximum recognition.
• QCC was developed in Japan in the 1950's.

The International Organization for Standardization (ISO)

• The purpose of ISO is to promote the development of standardization and related activities in order to facilitate easier international exchange of goods and services and to develop cooperation in intellectual, scientific, technological and economic activities.
• The results of ISO technical projects are published as international standards; the ISO 9000 series is a result of this process.

Traditional Organization vs TQM Organization

• Traditional organizations are company driven with a short-term focus versus customer driven with a long term focus in TQM.
• Compared to traditional organizations, TQM is data driven, focuses on eliminating waste, encouraging continuous improvement and high employee participation, problem solving and leadership, and systems thinking.

Implementing TQM

• In order to implement TQM, one must obtain the CEO's commitment, educate upper-level management, create a steering committee, and clarify the vision, mission, and values.
• Implementing TQM requires preparing a process flow diagram, identifying Critical Success Factors(CSF).
• To implement TQM, you must develop measures and metrics to track CSF data, identify customer groups, and solicit feedback.
• Monitoring CSF and developing an improvement plan is necessary for TQM implementation.
• Providing a quality training program, establishing quality improvement teams and implementing process improvements using TQM tools all are necessary for implementation.
• Knowing the benefits of TQM is necessary for it's implementation.

Difficulties in implementing TQM

• Competitive markets and bad attitudes are some difficulties in TQM implementation.
• Lack of proper training, inadequate human resource development, resistance of the workforce, and lack of management commitment are all hindrances to TQM.
• Poor planning, problems measuring quality, inadequate resources, cultural issues, lack of leadership, and abdication of responsibility are also reasons why it is difficult to implement TQM.