To view bigger version of the TQM on the right, click here.

What is Total Quality Management?

Total Quality Management is “a philosophy that stresses three important principles: customer satisfaction, employee involvement, and continuous improvements in quality.” (Ritzman, Krajewski, Malhotra, & Klassen, 2007)

Total Quality Management is a management approach that originated in the 1950’s and its use has been growing since the early 1980’s. Total Quality is an explanation of the culture, attitude and organization of a firm that works towards satisfying customers with desired products and services. The Total Quality Management integrates other areas essential to quality, such as product and service design, process design, purchasing, and problem-solving tools.

Many individuals, such as Edwards Deming, Joseph Juran and Philip Crosby, have contributed to develop an understanding and meaning of quality management over the last 80 years.

TQM is a method that can be used by management and employees to develop continuous improvement in the production of goods and services. It is a mix of quality and management tactics intended at benefiting the business and decreasing product waste and associated costs.

TQM Broken Down

To understand the TQM concept with ease, it is important to understand what each word of the acronym means.

Total = Quality involves everyone and all activities in the company

Quality = Conformance to requirements (meeting customer requirements)

Management = Quality can and must be managed

Quality

Quality is a major aspect of TQM and it is one of the key aspects of customer value. However, each customer develops a personal definition of quality, depending on whether the customer is internal or external to the firm. On a general base, quality can be defined as meeting or exceeding the expectations of the customer.

Principles of TQM

• Management Commitment

1. Plan - drive, direct
   
2. Do - support, participate
3. Check - review
4. Act - communicate, revise

• Employee Empowerment

1. Training
2. Suggestion system - employees contribute their opinions
   
3. Measurement of success and recognition
   
4. Excellence teams

• Continuous Improvement

1. Cross-functional process management
2. Improve standards
3. Team productivity

• Customer Focus

1. Supplier partnership
2. Service relationship with internal customers
3. Customer driven standards
4. Maintain quality performance

Plan for a Change

This diagram shows a step-by-step process of how you would plan for a change. Each step requires its own activities, identifying the problem and its causes. To view a more detailed chart of the planning process, please go here.

To view this diagram in a bigger version, click here.


Importance of Continuous Improvement by TQM

The major concept of TQM is to maintain improvement in all work, starting with high level strategic planning and decision-making, to precise implementation of work elements in a firm. TQM carries a base belief that mistakes can be avoided and deficiencies prevented. With this concept, the goal of TQM is to further develop and improve people, processes, technology, and capabilities of employees and machines.

Continuous improvement is not focused on improving results, but how to achieve better results in the future with specific improving capabilities and developments. There are five areas of focus for capability improvement: demand, supply, technology, operations and people capability.

TQM: Foundation of activities

• Meet customer requirements and standards

• Reduce product development times

• Maintain “just in time” delivery for all customers

• Demand based manufacturing
  

• Develop product and service improvement programs/personnel

• Decrease product and service costs

• Improve administrative systems training

Implementation Principles


The simplest model of TQM is shown in the diagram above. It begins with understanding customer needs and changes that need to be assessed. TQM organizations have processes that constantly collect, analyze and act on customer changing information. Also, such processes are furthered to understand competitor's customers. Developing an understanding of customer needs allows TQM organizations to forecast future customer behavior.

TQM organizations use customer knowledge with other information to implement the planning process of managing day-to-day activities and attain future goals. Such plans are reviewed periodically and are adjusted if necessary. The planning process is a cornerstone that holds the whole TQM process together.

Consistent quality, price and on-time delivery of products and services are a big component for all customers. TQM organizations use techniques of process management to maintain cost-controlled processes that are stable and competent of meeting customer expectations.

Process improvement is a daily activity for TQM organizations, because the accepted performance today may not be the standard in the future. This understanding is important, so organizations can improve and maintain continuous internal stability.

The final step of the TQM model is total participation, because all work within any organization is performed through people and employees. This stage begins with leadership where top management takes responsibility to implement and change TQM activities. They make sure that employees are properly trained and are capable in reaching organizational success. Management and employees work together to develop a strong environment of value and respect.

On the right is another TQM diagram, outlining an
in-depth process.
To view a bigger version, click here.



Further Reading

Total Quality Management

Applying Total Quality Management in Academics

Reducing IT User Downtime Using TQM – a Case Study

Eight Elements of TQM

External Links

OPMAN Course Website
BCIT Website
www.searchcio.techtarget.com
http://dictionary.reference.com


References

Christian, C. (2007, June 11). Retrieved February 25, 2008, from Total Quality Management: http://www.qi.org.tw/tqm/tqm.asp#fnd

Hashmi, K. (2008). SixSigma. Retrieved February 23, 2008, from Introduction and Implementation of Total Quality Management : http://www.isixsigma.com/library/content/c031008a.asp

Ritzman, L., Krajewski, L., Malhotra, M., & Klassen, R. (2007). Foundations Of Operations Management. Toronto: Pearson Education Inc.

Wikipedia. (2008, 25 February). Retrieved February 25, 2008, from Total Quality Management: http://en.wikipedia.org/wiki/TQM

Helping Organizations Improve Effectiveness . (2007). Retrieved February 27, 2008, from Total Quality Management: http://www.tqe.com/tqm.html