Total Quality Management (TQM)

Wondering why do certain websites offer a better online buying experience than others? Or why do certain products have a better market value than others? Let's examine the concept of Total Quality Management (TQM) to understand this better.  

It is challenging for a company to conquer the globally competitive and ever-evolving market. Additionally, the availability of related products from several manufacturers gives clients a variety of choices. Therefore, buyers base their choice of goods on several factors, such as price, brand recognition, after-sales support, etc. Quality will always be the deciding element among these. In order to acquire loyalty from your customers, you must provide them with additional benefits. Quality can be assessed in terms of reliability, usefulness, durability, and other factors. 

In a nutshell, a high-quality product means consumer attraction and retention. Every firm now has a customer-focused strategy, making quality assurance crucial to providing the finest goods or services.  

Table of Contents

1) Understanding Total Quality Management & Concepts 

2) The Four Categories of Total Quality Management (PDCA Cycle) 

3) History and Evolution of Total Quality Management  

4) How does Total Quality Management Work?  

5) Benefits of Total Quality Management  

6) How to Implement TQM?

7) Total Quality Management Principles to Improve Processes

8) Why follow Total Quality Management Principles?  

9) Conclusion

Understanding Total Quality Management

Total Quality Management (TQM) is a standard management practice wherein each employee within an organization continually analyses its production processes to improve the manufacturing quality of products and services and enhance customer satisfaction. It involves conducting management training and implementing analytical methods to identify and remove problem areas in business operations. 

It is a successful management approach commonly employed in industries, such as manufacturing. As part of the quality improvement planning process, the executives train the workforce from different departments about the process standards and define business goals. Not only does TQM help an organization meet customer expectations, but it also helps them minimize operating costs by reducing resource waste due to insignificant practices. 

Always remember that one happy and pleased customer brings 10 new customers with him. In contrast, one dissatisfied customer will spread negative word of mouth and ruin several of your existing as well as potential consumers.

 

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The Four Categories of Total Quality Management (PDCA Cycle)    

To achieve long-term success, Total Quality Management makes sure that every person is working to enhance the workplace environment, procedures, services, systems, and so forth. To learn further in detail about Total Quality Management, we’ll discuss the four categories in which it is divided-  

1) Plan  

2) Do 

3) Check 

4) Act  

This is also referred to as the PDCA Cycle-

1) Planning Stage- The most important stage of Total Quality Management is planning. Employees must report any issues or questions that need to be resolved at this phase. They must list the various difficulties they have in carrying out their daily tasks and analyse the underlying causes of the issues. Employees are expected to conduct the necessary research and gather pertinent data to aid in problem-solving. 

2) Doing Stage- Employees create a remedy for the issues identified in the planning phase during the doing phase. To address the difficulties faced by employees, strategies are developed and put into practise. In this stage, the efficacy of strategies and solutions is also evaluated. 

3) Checking Stage- In order to verify the performance of the processes and gauge the results, people actually compare data from the before and after phases during the checking phase. 

4) Acting Stage- Employees record their findings during this phase and get ready to tackle other challenges.

History and Evolution of Total Quality Management

TQM history often dates back to the early 1900s when Walter A. Shewhart introduced modern quality control. Shewhart introduced a landmark piece of industrial work titled Economic Control of Quality of Manufactured Product in 1931. This exposition is considered one of the founding and basic principles of manufacturing quality control. 

The History of TQM Evolved Over the Years. For a Detailed View Refer to the Table Below- 

The following is the history of TQM evolved over the years:

The History of TQM Evolved Over the Years


How does Total Quality Management Work?

TQM assists businesses to enhance the overall quality of their outputs by enabling their employees to be coordinated with the manufacturing processes. The top management, middle management, and managers do this to evaluate the finished goods from every angle and create excellent production plans in accordance.  They employ a variety of strategies, such as:

1) Identifying the issue and stopping it before it starts 

2) Sending it to the value-added chain for additional quality control 

3) Stopping the process if the mistakes happen again 

4) Using technology to their advantage

In addition, Total Quality Management helps businesses streamline supply chain management and verify that the produced goods comply with legal requirements. They essentially aim to guarantee that the finished product meets market standards, legal specifications, and client expectations.

Benefits of Total Quality Management 

Now, let us have a quick look at the benefits of the Total Quality Management:

1) Prevention and eradication of errors 

2) Assured customer retention   

3) Lower service costs, higher profits 

4) Feedback from all stakeholders involved  

5) Employee engagement and empowerment at all production levels  

6) Enhanced market reputation 

7) The attention shifting to the customer 

8) Customer satisfaction rises when expectations of consumers are satisfied.  

9) More positive organisational culture 

10) Improved relations with stakeholders  

11) Boost employee morale  

12) Ongoing attempts to uphold the standards for quality 

13) Higher value for stakeholders  

14) Innovative techniques and original concepts 

15) Strengthened competitive position 

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How to Implement TQM?

A sincere evaluation of the organisation as it is presently, should be the first step in introducing any new system. There is no step-by-step manual that will explain how to implement Total Quality Management for your company; it must be applied to the existing organisational structure. The fundamentals of TQM can serve as a framework for all decisions, even if every organisation is different and requires a customised strategy. 

After that, you can move forward with these opportunities.

1) Emphasise Client Satisfaction- Emphasising client satisfaction will alter how departments view their responsibilities. They are not moving in the correct way if what they are doing doesn't help raise the standard of the product or the quality of the customer experience. 

Each employee should be prepared to think about how they may enhance their own department and deliverables and take ownership of their work. 

2) Communicate with Everyone- To inform everyone about the upcoming changes and to provide a channel for feedback, communication across the business is crucial. Communication, as they say, is a two-way street. When they feel heard and have a say in how changes are made, employees will find it much simpler to develop a sense of ownership over the process. 

3) Manage Errors- Managing mistakes is one of the most crucial parts of providing quality. No matter how committed everyone is to promoting quality, problems will inevitably arise in IT businesses. For Total Quality Management to be successful, processes that reduce concerns must be developed. Naturally, errors should be handled and resolved as soon as possible, but they also need to be tracked and recorded.

Recurring problems could be a sign of a more fundamental problem that calls for significant adjustments to the way things are done now. A mistake offers the ability to evaluate a problem, but it also offers the potential to identify what is working. Practitioners of Total Quality Management should use mistakes as an opportunity to grow from them and figure out how to prevent them in the future. 

Total Quality Management Principles to Improve Processes

Implementation and performance will differ from firm to firm, as they do with most management systems and practices. Although there isn't a single method that everyone agrees on, the most popular Total Quality Management definition consists of the following eight concepts. 

1) Customer-centred

The first Total Quality Management (TQM) concept emphasises focusing on customers, as their satisfaction defines your product's quality. A product that meets or exceeds expectations ensures customer loyalty and positive recommendations.

To Apply This Principle:

a) Understand customer needs and align organisational goals with them

b) Communicate regularly, asse

c) ss satisfaction, and improve processes based on feedback

d) Balance customer needs with those of stakeholders like employees and investors

Benefits:

a) Increased sales, revenue, and market share

b) Strong customer loyalty and repeat business

c) Higher chances of referrals from satisfied customers

2) Employee Commitment

Employee commitment is vital for improving productivity, processes, and sales. To achieve this, employees must understand the organisation's vision, be well-trained, and have access to the right resources to meet goals effectively.

To Apply This TQM Principle:

a) Clearly communicate each employee's role in the final product.

b) Assign responsibility and empower teams to solve issues.

c) Encourage self-assessment and workflow adjustments.

d) Recognise achievements to build confidence and motivation.

e) Provide training, optimise resource use, and promote learning opportunities.

Benefits:

a) Higher employee retention due to motivation and involvement.

b) Enhanced creativity and innovation in process improvement.

c) Increased accountability and enthusiasm for continuous improvement

3) Process Strategy

Adhering to processes is crucial for quality management, ensuring consistency and efficient production by completing tasks at the right time.

To Apply This TQM Principle:

a) Clearly define roles and responsibilities using tools like process flowcharts.

b) Create a visual action plan to outline required tasks.

c) Analyse current processes to identify areas for improvement or bottlenecks.

d) Assess the impact of operations on stakeholders, suppliers, and customers.

Benefits:

a) Faster development cycles, reduced costs, and higher profits.

b) Greater consistency and predictable outcomes

c) Improved focus on success and continuous improvement

4) Integrated System

Firms often have distinct departments with unique goals, which can lead to siloed operations. Total Quality Management (TQM) focuses on integrating these functions through horisontal processes, fostering collaboration and alignment.

To apply this TQM principle:

a) Promote a quality-driven workplace culture

b) Use flowcharts to help employees understand their roles in the organisation's structure

c) Conduct as-is process analysis to identify improvements

d) Provide training for employees to learn new procedures and advance their careers

Benefits:

a) A focus on quality helps the business succeed and exceed customer expectations

5) Strategic Approach

This principle, as defined by the International Organisation for Standardisation (ISO), emphasises managing interrelated processes as a system to improve an organisation’s efficiency and effectiveness in achieving objectives.

To apply this TQM principle:

a) Equip staff with the knowledge and tools to excel in their process phases.

b) Continuously enhance processes and upgrade hardware to meet objectives.

c) Set measurable goals for sustaining progress.

d) Recognise and reward innovations and process improvements.

Benefits:

a) Quick identification and resolution of process bottlenecks.

b) Overall improvement in organisational capacity and performance

6) Continuous Growth

To maintain productivity and customer satisfaction, a firm must continuously streamline operations and adapt to changing client needs. TQM principles help monitor and drive ongoing improvement.

To Apply This TQM Principle:

a) Set measurable goals for individuals, teams, and departments to improve products, processes, and systems.

b) Foster innovation by recognising and encouraging new ideas.

c) Provide training opportunities for staff to enhance professional growth.

Benefits:

a) Improved capabilities and knowledge to boost performance

b) Alignment of improvement goals with organisational objectives

c) Faster identification and resolution of process bottlenecks

7) Making Decisions Based on Facts

Data analysis and collection lead to better decision-making, helping you understand your market and clients more deeply.

To Apply This TQM Principle:

a) Ensure data accuracy and reliability by analysing and verifying it.

b) Share relevant data with stakeholders.

c) Use reliable methods to collect and analyse data.

d) Make decisions based on both data and experience.

Benefits:

a) Improved decision-making capabilities.

b) Ability to justify actions with factual records.

c) Opportunity to adjust past decisions based on data analysis.

8) Communication

Effective communication is key to maintaining morale and motivating employees, especially during changes or routine operations.

To Apply This TQM Principle:

a) Establish formal communication channels to keep staff informed about updates and changes.

b) Involve employees in decision-making where possible.

c) Ensure everyone comprehends their roles and how they contribute to the business.

Benefits:

a) Boosted morale and motivation as employees see their impact on company success.

b) Improved cooperation and coordination across departments

c) Better monitoring of the effectiveness of policies and procedures

d) Increased motivation from employee involvement in decisions

Why Follow Total Quality Management Principles?

Many businesses have a quality department that is primarily concerned with the supply chain and only accountable for the product quality. Customer service is a prime illustration of how an organisation may influence customer experience beyond products even when it plays no part in ensuring quality across the board. 

The job and function of the quality department are now carried out by all divisions in a Total Quality Management approach, as competitive pressures have imposed a theme stretching much beyond traditional quality control, inspection, quality engineering, and reliability engineering. 

Your organisation will transition from its current "small Q" or product emphasis to "big Q, enterprise-focus" thinking if quality is managed in a Total Quality Management system. The greatest advantage is lowering the total cost of quality by enhancing all goods, services, and procedures—not just those that are being produced.

Additional Advantages of Total Quality Management Include:  

The following are the additional advantages of the Total Quality Management:

a) Improved Customer Satisfaction: This shows that TQM pays a lot of attention on the quality and its improvement, consequently customer satisfaction and loyalty will be improved as well. 

b) Increased Efficiency: Efficiency, minimisation of waste generates improve resource, shortened product cycle time and lower overheads. 

c) Enhanced Employee Morale: Powerfully, employee’s involvement within the quality improvement activities motivates and increases their pride in their job tasks. 

d) Stronger Competitive Advantage: Organisational quality improvements and orientation towards the needs of consumers makes it possible for firms to retain a requisite market competitiveness. 

e) Better Decision Making: QC plays a vital role in TQM, and important decisions are made based on the data received, which helps to improve the organisation’s performance. 

f) Sustained Business Growth: Since there are constant improvements of processes and products of TQM, business benefits from long term results by enriching its profitability and market share.

Conclusion

In conclusion, Total Quality Management is a transformative approach that goes beyond merely meeting standards; it embeds a culture of excellence across every level of an organisation. By focusing on customer satisfaction, continuous improvement, and collaborative problem-solving, TQM not only enhances operational efficiency but also drives long-term success. Embracing its principles enables organisations to stay competitive, adapt to evolving market demands, and deliver consistent value to stakeholders.

Frequently Asked Questions

What are the Main Tools and Techniques Used in TQM? faq-arrow

The main tools and techniques used in TQM include Pareto Analysis, Cause and Effect Diagrams, Flowcharts, Control Charts, Histograms, and Scatter Diagrams. These helps identify issues, analyse processes, monitor performance, and drive improvements for consistent quality.

How Does TQM Impact Organisational Culture? faq-arrow

Total Quality Management (TQM) is an organisation-focused development approach that promotes a culture of ongoing improvement, teamwork, and shared responsibility. It emphasises active participation in decision-making, prioritises quality across all activities, and aligns goals with customer satisfaction. 

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Our Business Improvement Blogs cover a range of topics related to Quality Management, offering valuable resources, best practices, and industry insights. Whether you are a beginner or looking to advance your Total Quality Management Skills, The Knowledge Academy's diverse courses and informative blogs have got you covered.
 

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