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AddImageAddVideoAdvertisementRelated Terms: ISO 9000; Quality Circles; Quality ControlTotal Quality Management (TQM) refers to management methods used to enhance quality and productivity in business organizations. TQM is a comprehensive management approach that works horizontally across an organization, involving all departments and employees and extending backward and forward to include both suppliers and clients/customers.TQM is only one of many acronyms used to label management systems that focus on quality. Other acronyms include CQI (continuous quality improvement), SQC (statistical quality control), QFD (quality function deployment), QIDW (quality in daily work), TQC (total quality control), etc. Like many of these other systems, TQM provides a framework for
implementing effective quality and productivity initiatives that can increase the profitability and competitiveness of organizations.
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Total quality management (TQM)Total quality management is a management approach centred on quality, based on the participation of an organisation's people and aiming at long term success (ISO 8402:1994). This is achieved through customer satisfaction and benefits all members of the organisation and society.
In other words, TQM is a philosophy for managing an organisation in a way which enables it to meet stakeholder needs and expectations efficiently and effectively, without compromising ethical values.
TQM is a way of thinking about goals, organisations, processes and people to ensure that the right things are done right first time. This thought process can change attitudes, behaviour and hence results for the better.
What TQM is not
TQM is not a system, a tool or even a process. Systems, tools and processes are employed to achieve the various principles of TQM.
What does TQM cover?
The total in TQM applies to the whole organisation. Therefore, unlike an ISO 9000 initiative which may be limited to the processes producing deliverable products, TQM applies to every activity in the organisation. Also, unlike ISO 9000, TQM covers the soft issues such as ethics, attitude and culture.
What is the TQM philosophy?
There are several ways of expressing this philosophy. There are also several gurus whose influence on management thought in this area has been considerable, for example Deming, Juran, Crosby, Feigenbaum, Ishikawa and Imai. The wisdom of these gurus has been distilled into eight principles defined in ISO 9000:2000.
The principles of quality management:
There are eight principles of quality management:
customer-focused organisation - organisations depend on their customers and therefore should understand current and future customer needs, meet customer requirements and strive to exceed customer expectations
leadership - leaders establish unity of purpose, direction and the internal environment of the organisation. They create the environment in which people can become fully involved in achieving the organisation's objectives
involvement of people - people at all levels are the essence of an organisation and their full involvement enables their abilities to be used for the organisation's benefit
process approach - a desired result is achieved more efficiently when related resources and activities are managed as a process
system approach to management - identifying, understanding and managing a system of interrelated processes for a given objective contributes to the effectiveness and efficiency of the organisation
continual improvement - continual improvement is a permanent objective of an organisation
factual approach to decision making - effective decisions are based on the logical and intuitive analysis of data and information
mutually beneficial supplier relationships - mutually beneficial relationships between the organisation and its suppliers enhance the ability of both organisations to create value
How does TQM differ from the EQA model?
The European Quality Award model is used to assess business excellence. Business excellence is the result of adopting a TQM philosophy and realigning the organisation towards satisfying all stakeholders (customers, owners, shareholders, suppliers, employees and society). The quality award criteria offers measures of performance rather than a methodology.
Why should a company adopt TQM?Adopting the TQM philosophy will:
make an organisation more competitive establish a new culture which will enable growth and longevity provide a working environment in which everyone can succeed reduce stress, waste and friction build teams, partnerships and co-operation
When should a company adopt TQM?TQM can be adopted at any time after executive management has seen the error of its ways, opened its mind and embraced the philosophy. It cannot be attempted if management perceives it as a quick fix, or a tool to improve worker performance.
How should a company adopt TQM?
Before TQM is even contemplated
TQM will force change in culture, processes and practice. These changes will be more easily facilitated and sustained if there is a formal management system in place. Such a system will provide many of the facts on which to base change and will also enable changes to be implemented more systematically and permanently.
The first steps
In order to focus all efforts in any TQM initiative and to yield permanent benefits, a company must answer some fundamental questions:
what is its purpose as a business? what is its vision for the business?
what is its mission? what are the factors upon which achievement of its mission depends? what are its values? what are its objectives?
A good way to accomplish this is to take top management off site for a day or two for a brainstorming session. Until management shares the same answers to these questions and has communicated them to the workforce there can be no guarantee that the changes made will propel the organisation in the right direction.
There are a number of approaches to take towards adopting the TQM philosophy. The teachings of Deming, Juran, Taguchi, Ishikawa, Imai, Oakland etc can all help an organisation realign itself and embrace the TQM philosophy. However, there is no single methodology, only a bundle of tools and techniques.
Examples of tools include:
flowcharting statistical process control (SPC) Pareto analysis cause and effect diagrams employee and customer surveys
Examples of techniques include:
benchmarking cost of quality quality function deployment failure mode effects analysis design of experiments
After using the tools and techniques an organisation needs to establish the degree of improvement. Any number of techniques can be used for this including self-assessment, audits and SPC.
TQM initiatives have been prone to failure because of common mistakes. These include:
allowing external forces and events to drive a TQM initiative an overwhelming desire for quality awards and certificates
organising and perceiving TQM activities as separate from day-to-day work responsibilities
treating TQM as an add-on with little attention given to the required changes in organisation and culture
senior management underestimating the necessary commitment to TQM
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Total Quality Management
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Length: 1090 words (3.1 double-spaced pages)Rating: Red (FREE) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total Quality Management Introduced in the 1950s and made more popular in the 1980s Total Quality Management is a very radical management style. A strong Total Quality Management plan relies on internal as well as external team building. A mistake to avoid before the implementation of a Total Quality Management strategy is an inaccurate analysis of the precondition and current state of an organization. Leadership styles and the organizations culture need to work well together. If they do not, this process should be delayed until an accurate assessment and favorable conditions exist. This paper defines Total Quality Management and examines the impact of globalization on quality. In addition, traditional management styles and quality focused management styles are compared and contrasted. Finally, how Federated Department Stores applies Total Quality Management is explained. Total Quality Management Defined Total Quality Management is the techniques an
organization uses to improve the quality and production level. This technique involves teamwork and is used horizontally across an organization. Internally all departments and employees are included. Externally all suppliers and clients/customers are included. The most important objective of Total Quality Management is to implement effective quality and productivity plans that will raise profits and give an organization a competitive boost. According to Hashmi (2006), "Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations" (Paragraph 2). To be effective Quality Management must be continuously improved upon by management and employees. Companies that have initiated the Total Quality Management process include; Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company (Hashmi, 2006). Currently a broad range of organizations use Quality Management; originally designed for manufacturing and for many years only used in that area. Today, Quality Management is considered an extremely adjustable strategy and has become a basic management tool in service and public organizations. Traditional Management vs. Quality Management Traditional management styles place an emphasis on the internal work environment. If an organization has done the best job possible to produce a product or service it is assumed to be of good quality. Total Quality Management looks at the end user to determine the quality. The important decider is the customer; quality management focuses on the customer. A strong Total Quality Management plan must be built into the system; quality is assured
instead of checked. If a product or service is a bad quality, traditional management believes the employees are not doing the job correctly. The big difference with Quality Management is the responsibility goes to middle management in operations area (Lean Manufacturing, 2006). Teamwork is the main building block in Quality Management; if the company is not unified Total Quality Management will not work. Lean Manufacturing states (2006), that "Unlike in traditional management style, total quality management makes decisions on facts and figures. Therefore, problems are identified correctly. Therefore solutions are well planned" (Paragraph 6).
Continuous thinking and improvements are a piece of the Total Quality Management plan. Constant improvements are necessary but should be small and stable. Many differences exist between traditional and Total Quality Management. Total Quality Management has changed the culture and the way organizations think.
Total Quality Management and Globalization Expanding globalization means stiff competition in the international markets. Some of the reasons for this competition include developing and former communist countries entering the marketplace, the introduction of new products and procedures, old material being efficiently used and innovations in technology. These are some of the reasons that have shifted markets that were once considered reliable. The global economy demands more innovation, higher quality and increased productivity.
Japan was the first to lead the quality initiative in the 1950s, during this time American organizations were producing mass quantities the traditional way. America thrived on the war damaged European countries. By the 1970s Asian competitors began to
surpass America; the American industries were considered inferior. As globalization increase the U.S. manufacturing industry-decreased because of more competitors, especially Japan. By the late 1980s the U.S. market scrambled to retrieve some of the market back from Japan. They began to adopt quality and productivity procedures to restore their competitiveness. In the 1990s the U.S. manufacturing industry began to retrieve gains in quality and productivity. Total Quality Management and Federated Department Stores Total Quality Management at Federated is applies to the logistics and Operations department. The most important responsibility of Logistics and Operations is the efficient and timely flow of new receipts to the sells floor; the right merchandise must be delivered to the right locations at the right time. Other responsibilities of this division include small-ticket and large-ticket distribution centers, coordinating transportation and shuttle deliveries, handling vendor returns, merchandise liquidation, delivering merchandise, primarily furniture and other large-ticket items, to customers' homes, and fulfill Internet and catalog orders (Federated Department Stores, 2006). To support all of the above functions Logistics and Operations aggressively implement new systems and up to date technology. They also diligently work with vendors to preserve the high standards of Federates supply chain. Management's objective is to constantly improve people, procedures, and technology; this enables the organization to advance service, speed and accuracy. With this in place, supply chain and logistic cost should decrease. In 2001, Federated was one of the first retailers to assume the Six Sigma quality improvement techniques to create and drive a focused culture, expand operating capabilities and improve processes (Federated Department Stores, 2006).
The organization was a leader in the EDI (electronic data interchange) this system sends purchase orders over the web instead of by fax. Federated distribution centers employs state of the art material handling systems and is a leader in RFID (radio frequency identification) to help speed the flow of merchandise through the distribution centers. TQM promotes involvement between all workers and management. A strong Total Quality Management plan relies on internal as well as external team building. The most important objectives of Quality Management are planned and continuous improvement. A successful TQM plans needs a combinations of quality systems as well as a strong culture between management and employees. If these conditions are not met the process should be delayed until the proper circumstances exist.
References Federated Department Stores, (2006). Logistics at Federated. Store Operations instruction manual, 2006. Hashmi, Khurram, (2006). Introduction and Implementation of Total Quality Management (TQM). Retrieved on March 24, 2007, from www.isixsigma.com.
Lean Manufacturing, (2006). Quality Management. Retrieved on March 25, 2007, from www.leanmanufacturingconcepts.com
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Total Quality Management Impact Of Globalization Department Stores Current State Team Building Management Process
ORIGINSTQM, in the form of statistical quality control, was invented by Walter A. Shewhart. It was initially implemented at Western Electric Company, in the form developed by Joseph Juran who had worked there with the method. TQM was demonstrated on a grand scale by Japanese industry through the intervention of W. Edwards Deming—who, in consequence, and thanks to his missionary labors in the U.S. and across the world, has come to be viewed as the "father" of quality control, quality circles, and the quality movement generally.Walter Shewhart, then working at Bell Telephone Laboratories first devised a statistical control chart in 1923; it is still named after him. He published his method in 1931 as Economic Control of Quality of Manufactured Product. The method was first introduced at Western Electric Company's Hawthorn plant in 1926. Joseph Juran was one of the people trained in the technique. In 1928 he wrote a pamphlet entitled Statistical Methods Applied to Manufacturing Problems. This pamphlet was later incorporated into the AT&T Statistical Quality Control Handbook, still in print. In 1951 Juran published his very influential Quality Control Handbook.W. Edwards Deming, trained as a mathematician and statistician, went to Japan at the behest of the U.S. State Department to help Japan in the preparation of the 1951 Japanese Census. The Japanese were already aware of Shewhart's methods of statistical quality control. They invited Deming to lecture on the subject. A series of lectures took place in 1950 under the auspices of the Japanese Union of Scientists and Engineers (JUSE). Deming had developed a critical view of production methods in the U.S. during the war, particularly methods of quality control. Management and engineers controlled the process; line workers played a small role. In his lectures on SQC Deming promoted his own ideas along with the technique, namely a much greater involvement of the ordinary worker in the quality process and the application of the new statistical tools. He found Japanese executive receptive to his ideas. Japan began a process of implementing what came to be known as TQM. They also invited Joseph Juran to lecture in 1954; Juran was also enthusiastically received.Japanese application of the method had significant and undeniable results manifesting as dramatic increases in Japanese product quality—and Japanese success in exports. This led to the spread of the quality movement across the world. In the late 1970s and 1980s, U.S. producers scrambled to adopt quality and productivity techniques that might restore their competitiveness. Deming's approach to quality control came to be recognized in the United States, and Deming
himself became a sought-after lecturer and author. Total Quality Management, the phrase applied to quality initiatives proffered by Deming and other management gurus, became a staple of American enterprise by the late 1980s. But while the quality movement has continued to evolve beyond its beginnings, many of Deming's particular emphases, particularly those associated with management principles and employee relations, were not adopted in Deming's sense but continued as changing fads, including, for example, the movement to "empower" employees and to make "teams" central to all activities.TQM PRINCIPLESDifferent consultants and schools of thought emphasize different aspects of TQM as it has developed over time. These aspects may be technical, operational, or social/managerial.The basic elements of TQM, as expounded by the American Society for Quality Control, are 1) policy, planning, and administration; 2) product design and design change control; 3) control of purchased material; 4) production quality control; 5) user contact and field performance; 6) corrective action; and 7) employee selection, training, and motivation.The real root of the quality movement, the "invention" on which it really rests, is statistical quality control. SQC is retained in TQM in the fourth element, above, "production quality control." It may also be reflected in the third element, "control of purchased material," because SQC may be imposed on vendors by contract.In a nutshell, this core method requires that quality standards are first set by establishing measurements for a particular item and thus defining what constitutes quality. The measurements may be dimensions, chemical composition, reflectivity, etc.—in effect any measurable feature of the object. Test runs are made to establish divergences from a base measurement (up or down) which are still acceptable. This "band" of acceptable outcomes is then recorded on one or several Shewhart charts. Quality control then begins during the production process itself. Samples are continuously taken and immediately measured, the measurements recorded on the chart(s). If measurements begin to fall outside the band or show an undesirable trend (up or down), the process is stopped and production discontinued until the causes of divergence are found and corrected. Thus SQC, as distinct from TQM, is based on continuous sampling and measurement against a standard and immediate corrective action if measurements deviate from an acceptable range.TQM is SQC—plus all the other elements. Deming saw all of the elements as vital in achieving TQM. In his 1982 book, Out of the Crisis, he contended that companies needed to create an overarching business environment that emphasized improvement of products and services over short-term financial goals—a common strategy of Japanese business. He argued that if management adhered to such a philosophy, various aspects of business—ranging from training to
system improvement to manager-worker relationships—would become far healthier and, ultimately, more profitable. But while Deming was contemptuous of companies that based their business decisions on numbers that emphasized quantity over quality, he firmly believed that a well-conceived system of statistical process control could be an invaluable TQM tool. Only through the use of statistics, Deming argued, can managers know exactly what their problems are, learn how to fix them, and gauge the company's progress in achieving quality and other organizational objectives.MAKING TQM WORKIn the modern context TQM is thought to require participative management; continuous process improvement; and the utilization of teams. Participative management refers to the intimate involvement of all members of a company in the management process, thus de-emphasizing traditional top-down management methods. In other words, managers set policies and make key decisions only with the input and guidance of the subordinates who will have to implement and adhere to the directives. This technique improves upper management's grasp of operations and, more importantly, is an important motivator for workers who begin to feel like they have control and ownership of the process in which they participate.Continuous process improvement, the second characteristic, entails the recognition of small, incremental gains toward the goal of total quality. Large gains are accomplished by small, sustainable improvements over a long term. This concept necessitates a long-term approach by managers and the willingness to invest in the present for benefits that manifest themselves in the future. A corollary of continuous improvement is that workers and managers develop an appreciation for, and confidence in, TQM over a period of time.Teamwork, the third necessary ingredient for TQM, involves the organization of cross-functional teams within the company. This multidisciplinary team approach helps workers to share knowledge, identify problems and opportunities, derive a comprehensive understanding of their role in the overall process, and align their work goals with those of the organization. The modern "team" was once the "quality circle," a type of unit promoted by Deming. Quality circles are discussed elsewhere in this volume.For best results TQM requires a long-term, cooperative, planned, holistic approach to business, what some have dubbed a "market share" rather than a "profitability" approach. Thus a company strives to control its market by gaining and holding market share through continuous cost and quality improvements—and will shave profits to achieve control. The profitability approach, on the other hand, emphasizes short-term stockholder returns—and the higher the better. TQM thus suits Japanese corporate culture better than American corporate culture. In the corporate environment of the U.S., the short-
term is very important; quarterly results are closely watched and impact the value of stocks; for this reason financial incentives are used to achieve short term results and to reward managers at all levels. Managers are therefore much more empowered than employees—despite attempts to change the corporate culture. For these reasons, possibly, TQM has undergone various changes in emphasis so that different implementations of it are sometimes unrecognizable as the same thing. In fact, the quality movement in the U.S. has moved on to other things: the lean corporation (based on just-in-time sourcing), Six Sigma (a quality measure and related programs of achieving it), and other techniques.PRACTICING TQMAs evident from all of the foregoing, TQM, while emphasizing "quality" in its name, is really a philosophy of management. Quality and price are central in this philosophy because they are seen as effective methods of gaining the customer's attention and holding consumer loyalty. A somewhat discriminating public is thus part of the equation. In an environment where only price matters and consumers meekly put up with the successive removal of services or features in order to get products as cheaply as possible, the strategy will be less successful. Not surprisingly, in the auto sector, where the investment is large and failure can be very costly, the Japanese have made great gains in market share; but trends in other sectors—in retailing, for instance, where labor is imposed on customers through self-service stratagems—a quality orientation seems less obviously rewarding.For these reasons, the small business looking at an approach to business ideal for its own environment may well adapt TQM if it can see that its clientele will reward this approach. The technique can be applied in service and retail settings as readily as in manufacturing, although measurement of quality will be achieved differently. TQM may, indeed, be a good way for a small business, surrounded by "Big Box" outlets, to reach precisely that small segment of the consuming public that, like the business itself, appreciates a high level of service and high quality products delivered at the most reasonable prices possible.BIBLIOGRAPHYBasu, Ron, and J. Nevan Wright. Quality Beyond Six Sigma. Elsevier, 2003.Deming, W. Edwards. Out of the Crisis. MIT Center for Advanced Engineering Study, 1982.Juran, Joseph M. Architect of Quality. McGraw-Hill, 2004."The Life and Contributions of Joseph M. Juran." Carlson School of Management, University of Minnesota. Available from http://part-timemba.csom.umn.edu/Page1275.aspx. Retrieved on 12 May 2006.Montgomery, Douglas C. Introduction to Statistical Quality Control. John Wiley & Sons, 2004.
"Teachings." The W. Edwards Deming Institute. Available from http://www.deming.org/theman/teachings02.html. Retrieved on 12 May 2005.Youngless, Jay. "Total Quality Misconception." Quality in Manufacturing. January 2000.