Total Quality Management - Concepts, Principles, and Implementation

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) Implementing Total Quality Management 

7) 8 TQM 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.

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- 
 

Year	History of Total Quality Management
1920s	As the ideas of scientific management spread throughout American business, some of the first roots of quality management were established.
	Businesses distinctly separated the planning and execution of plans, which led to union hostility because workers were denied a say in the details of their jobs.
	The Hawthorne trials from the late 1920s demonstrated how participation may affect worker productivity.
1930s	The techniques for statistical analysis and quality control were created by Walter Shewhart.
1950s	Japanese engineers and executives were taught statistical analysis and quality control techniques by W. Edwards Deming. This can be seen as the start of Total Quality Management.
	Teachings of Joseph M. Juran focused on managerial innovation and quality control.
	Total Quality Control, a precursor to how TQM is currently understood, was written by Armand V. Feigenbaum.
	The promotion of zero defects by Philip B. Crosby cleared the door for quality improvement in numerous businesses.
1968	"Companywide quality control" is how the Japanese refer to their methodology to total quality. The phrase “quality management systems” first appeared at this point.
	The philosophy's synthesis by Kaoru Ishikawa assisted in Japan's rise to prominence as a top leader.
Present	The notion of a comprehensive and systemic approach to controlling organisational quality is known as Total Quality Management.
	TQM's guiding concepts and procedures are defined by quality standards like the ISO 9000 series and award programmes like the Deming Prize and Malcolm Baldrige National Quality Award.
	As worldwide standards for quality management have been created, the word "TQM" has lost appeal as a way to refer to an organization's quality policies and practices.

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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Implementing Total Quality Management

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 concept returns the focus to the customers who will be using your good or service. Your product's quality is decided by your customers. Customers will recognise they spent their money on a high-quality item if your product meets a requirement and lasts as long as or longer than anticipated. 

When you understand what your customer wants or needs, you have a better chance of figuring out how to get the right materials, people, and processes in place to meet and exceed their expectations.  

In order to apply this TQM principle- 

A) Discover and comprehend the needs and expectations of your customers 

B) Synchronise your organization's goals with client demands 

C) Consult with customers, gauge their level of satisfaction, and make process improvements in light of the findings 

D) Maintain communication with customers 

E) Create a balance between the needs of customers and other interested parties (such as owners, employees, suppliers, and investors) 

Benefits include- 

A) More sales, more revenue, more market share, more mindshare 

B) Sustained client loyalty that generates more business 

C) Increased likelihood that content customers will recommend your goods and services to others 

2) Employee Commitment

You can’t increase productivity, processes, or sales without the total commitment of all employees. They need to understand the vision and goals that have been communicated. They must be sufficiently trained and given the proper resources to complete tasks to be committed to reaching goals on time. 

In order to apply this TQM principle-

A) The importance of each individual effort to the finished product should be expressed clearly 

B) Reiterate that each individual or team accepts responsibility and offer them the duty and chance to address issues as they arise 

C) Encourage workers to assess their own performance in relation to their own goals and objectives and make adjustments as needed to enhance workflow  

D) Build employee and stakeholder confidence by recognising accomplishments and improved performance 

E) Clarify roles, offer sufficient training, and ensure that resources are used as effectively as possible 

F) Encourage individuals to look for new opportunities to learn and take on new responsibilities to expand their knowledge, skill, and experience 

G) Establish a setting where employees feel free to discuss issues and offer solutions 

Benefits include-  

A) Increased employee retention as a result of staffs' increased motivation, dedication, and involvement in achieving customer satisfaction  

B) Innovative thinking and creativity, both individually and collectively, in process improvement  

C) Individuals who are accountable  

D) Enthusiasm for participating actively and helping to improve things constantly 

3) Process Strategy

Process adherence is essential to quality management. To assure consistency and speed up production, processes assure that the necessary steps are completed at the right time. 

In order to apply this TQM principle- 

A) Clearly define and outline roles and responsibilities so that everyone is aware of who is responsible for what. Use Total Quality Management tools like process flowcharts 

B) Make a visual action plan so that everyone can easily see the precise tasks that must be carried out to attain the intended outcome 

C) Determine where improvements might be made or which steps in the process are causing constraints by analysing and measuring present activity 

D) Consider the effect your procedures and operations may have on your stakeholders, suppliers, and consumers 

Benefits include-

A) shorter development and manufacturing cycles, cheaper prices, and higher profits

B) greater consistency and predictability of results

C) better focus on success and ongoing progress

4) Integrated System

A firm typically contains a large number of distinct departments, each with its own unique tasks and objectives. The horizontal procedures that should be the emphasis of Total Quality Management should connect these departments and functions. But occasionally, these divisions and tasks work in separate compartments. 

Everyone in every department should completely comprehend the policies, standards, goals, and procedures in an integrated system. Integrated systems assist the business in looking for ongoing improvements to gain a competitive advantage. 

In order to apply this TQM principle- 

A) Promotes a quality-oriented workplace culture 

B) Helps employees understand how their roles fit into the overall structure of the organisation by using flowcharts and other visual aids 

C) Use as-is process analysis to identify areas for improvement 

D) Make training accessible to employees who desire to learn new procedures and pursue career growth opportunities 

Benefits include-

A) Place an emphasis on quality to help your company succeed and meet or surpass customers' expectations. 

5) Strategic Approach

This principle is defined as follows by the International Organization for Standardization (ISO)- 

“Identifying, understanding and managing interrelated processes as a system contributes to the organization’s effectiveness and efficiency in achieving its objectives.” 

In an effort to improve efficiency, many processes within a development or manufacturing cycle are controlled as a system of processes. 

In order to apply this TQM principle- 

A) Give your staff the knowledge and tools they need to successfully complete their respective process phases 

B) To achieve objectives, continuously enhance procedures and outputs and upgrade hardware as required 

C) Make sustaining progress a measurable goal for every worker 

D) Recognize innovations, process advancements, and reward them 

Benefits include- 

A) An aptitude for recognising, responding to, and resolving process bottlenecks or failures promptly 

B) Enhanced organisational capacity and performance overall 

6) Continuous Growth

A firm must always look for ways to streamline operations and modify its products and services in response to changing client demands if it wants to maintain maximum productivity and total customer happiness. The other Total Quality Management principles, as previously mentioned, should assist your company in keeping a close eye on ongoing development. 

In order to apply this TQM principle- 

A) Implement policies to define quantifiable goals for people, teams, and divisions for product, process, and system improvements 

B) Encourage innovation to enhance development and processes by recognising it 

C) Encourage staff members to take advantage of any training opportunities so they can grow professionally 

Benefits include- 

A) Enhanced capabilities and knowledge to boost performance 

B) Strategically aligned improvement objectives with organisational capabilities and objectives 

C) Rapid response to identify and correct process bottlenecks and flaws 

7) Making decisions based on facts

Based on the knowledge at hand, analysis and data collection result in improved decisions. Making educated selections helps you gain a deeper understanding of your market and clients. 

 In order to apply this TQM principle- 

A) Make sure the data is correct and dependable by analysing and verifying it 

B) Make pertinent data available to interested parties 

C) Use reliable techniques to collect and analyse data 

D) Make conclusions based on your experience and instinct as well as the facts you've gained from the data 

Benefits include-

A) Ability to make intelligent choices  

B) Capability to evaluate and defend previous actions using factual records 

C) Potential to alter past choices considering data evaluation 

8) Communication

Effective communication is crucial for preserving employee morale and inspiring workers at all levels, both in times of organisational change and in regular operations. Communication requires timing, methods, and strategies. 

In order to apply this TQM principle- 

A) Establish a formal channel of communication to ensure that all staff members are informed of updates, changes to policies, and new procedures 

B) Include employees in decision-making whenever possible 

C) Ensure that every employee in every department is aware of their responsibilities and how they fit in with the rest of the business 

Benefits include- 

A) Employee morale and motivation are boosted when they realise how their work contributes to the company's success 

B) Cooperation and coordination between departments  

C) Ability to monitor effectiveness of present rules and procedures more precisely  

D) Employees are more motivated to attain goals because they participate in the decision-making process. 

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:  

A) When developing new products and procedures, decrease and mitigate risk 

B) Fix issues before they arise 

C) Fix issues that arise during operations  

D) Boost supplier efficiency  

E) Even while scaling up, control operations to reduce risk  

F) Improve output from all staff 

G) Reduce the cost of quality overall, not simply the costs associated with low-quality products 

Conclusion

We’ve provided you with an overview of Total Quality Management. Clearly, Total Quality Management is necessary as its main goals are to eliminate errors, streamline procedures, and increase productivity. Now, you can refer to this blog and make an informed decision about how you can entail Total QM in your organisation or learn more about the concept through our Quality Management Training Courses!