total quality management -j. oyetade

8/3/2019 Total Quality Management -j. Oyetade

1/10

TOTAL QUALITY MANAGEMENT

BY

J.O. OYETADE

B.SC., FCA, MBA

BEING A PAPER PRESENTED AT A WORKSHOP ON:

COST REDUCTION AND COST CONTROL

ORGANISED BYTHAMESMEAD CONSULTANCY

LIMITED AT AVALON HOTEL,OFFA, KWARA STATE6TH -8TH AND 13TH AND 15TH OCTOBER 2007


2/10

INTRODUCTION

If the management of any company has it imperative to perform effectivelyand efficiently, there is need for change. This is because there is no

condition that is permanent in life except for a change. Business

environment that is full of opportunities and threats must also strive for

change. To achieve this goal in the face of competitive activities, the idea of

Total Quality Management must be evolved people and the organization

themselves will not be satisfied.

Total Quality Management which is often referred to as TQM is a modern

management technique and philosophy aimed at satisfying the customers

always in a highly competitive world of business. It applies to all the variousorganizations, public and private enterprise where their objectives include

serving the people maximally from the available resources. Thus, the

ultimate goal for business is to ensure that their customer or target public get

the best possible to satisfy their wants. To accomplish this goal, most

companies have embarked on full-scale TQM programme so as to really

prove the quality of their management. The advent of modern management

technology, therefore, made use of Management by Objective, Strategy

Planning, Effective Communication, Participative Management, Delegation

of Representatives and Authority among others as relevant tools orinstruments. From these analyses, it would easily be seen that TQM is a

catalyst for the achievement of the objective of any organization.

TOTAL QUALITY MANAGEMENT

TQM is a technique and form of management which was developed in

America and France by Management Practitioners a long time ago. But in

todays competitive market, successful businesses have learnt that customer

satisfaction derived from excellent service is the key to their successes. Tom

Peters (1991). Author of In search of Excellence, has said that Excellence

in service should be thought of as the product of any company orinstitution.

Both manufacturing and service organization must re-focus their efforts to

achieve excellence in service if they are to survive. When it comes to

customer service, even a small failing can prove costly if not fatal. National

and international competitions have raised the stakes. Organization in both


3/10

the public and service sectors are now struggling to re-tool to change

excellence in service. Business lenders are looking for new models that will

help them reorganize their approach to management and undo long habits of

indifference to customers. The senior executives have realized that

development and implementing a management strategy that ensures a high

performance at work place is paramount. The most insightful, know that real

change means as organization wide shift in management strategy

commitment to excellence of the organization from top management to the

mail-room staff.

DEFINTION

TQM is a form of management, and is a concept focused on how to satisfy

the customer constantly. Such satisfaction is viewed un terms of issues like

the quality of the product, its involves making constant effort to identifywhat the customer wants from time to time and determining how best to

cater for such wants. This is in recognition of the fact that the customers

need and desire normally change over time in time with the changes which

may occur in some key aspect of the technological changes.

Hence TQM further implies a culture of continuous improvement which, in

turn implies continuous learning and adaptation to change in both customer

demand and the concomitant product or operation methods. From this

assertion, TQM attempt to make optimum use of all available resources by

dedication of the highest possible standards in all external and internal

process therefore, leading to customer satisfaction, improvement market

share and profit growth.

However, TQM focus on the customer does not mean it neglects the

interests of other stakeholders such as the entrepreneur, labour and

environment. These other factor too contributes immensely to the success

which is overlooked may cause failure. But the placement of more premium

on customer satisfaction than on short term profits in its daily operationindicate the uniqueness and importance of the customer.


4/10

WHAT DOES IT MEAN TO AN INDIVIDUAL?

The modern business world is a competitive environment, we know only the

best wins and only a winner will be able to use commensurate reward to

their winners. TMQ if properly implemented will enable the organization to

be a winner, and a winner will be able to continue to provide job security,

opportunities and rewards for its employees. That means for the workers and

his family but security taste only if the organization win in market place. It

has to be an emotional experience, either positive or negative, TQM requires

a cultural change.

WHY TOAL QUALITY MANAGEMENT IN NIGERIA

TQM is strategic and represents organization response to present market

realities characterized by:-

I. Increasing competitionII. Standards of technology

III. Continuous changes in consumer demand

IV. Raising costs of factors input resulting from wastages

V. Increase in consumer protection.

However, faced with this scenario, service organization and manufacturers

like any other player in the market were left with two basis of competition

namely:-

- service

-

priceThe choice of service excellence is a strategy for gaining competitive

advantage and this hinged on fact that price competition cannot be sustained

in a high regulated economy like Nigeria. But in the long run, excellent

service can influence prices in a manner that facilitates the objective of any

rational firm.

Thus, their commitment to service excellence is a testimony to their

corporate philosophy of TQM which is adopted to achieve other desirable

ends. These include improving staff moral, customer retention and costreduction.


5/10

ELEMENTS OF SERVICE QUALITY

A company that wishes to provide consistently good service quality has to

commit itself to incorporating the following key efforts:-

a) Quality care

b) Customer care

c) Flip ( frontier people) care

d) Communication care

e) Leadership care

However, as the focus is mostly on customer, a pertinent question which

may be asked is what special service do consumers and other stakeholder

enjoy under TQM? To do so, Ajani E.O (2002:43) provide a clue by saying

that the TQM addresses, first and foremost, the issue that is most important

to every customer namely, how to obtain relevant goods and services at the

particular time or time they are needed, in the right quantity and quality, andat the minimum cost possible.

Hence, TQM identify what is required and proceeds to produce and deliver

them as required, making sure that they are durable, safe and reasonable up

to date. All these imply, among other things, constant adaptation to changes

and providing consumer with all the information required for the maximum

enjoyment of relevant goods and services. In the case of machines and

equipment for instance, consumers would be informed about components,

usage and maintenance approaches. They would also be provided at once

with all complementary or auxiliary items that may be needed.

Similarly, with the TQM adoption, business owners and shareholders will

get returns on their investments through increased operation efficiency, just

as labour will obtain adequate compensation for that contribution to

corporate achievements. Operation generally would be strained less and

exposed to less danger through constant work study, leading to improvement

in work methods and procedures, coupled with the provision of necessary

training, tools and materials. People are, thus, enabled to benefit materiallyfrom the operations of enterprises.

STRATEGIES OF TOTAL QUALITY MANAGEMENT

TQM as a business strategy implies, that many Nigerian firms now adopt

this approach to succeed and survive. And to embrace the idea of delivering

superior quality to their customers and clients, the principle of business


6/10

strategy will serve as important link of superior quality and low cost. This

can be argued that quality of any features of a product or service costs

money and the more quality in a product, the higher the cost of the product

according to the Economists. Since many managers relied on inspection after

production to achieve high quality, the economists were correct in observing

that quality costs money conversely, it may be viewed in another way that

when quality of goods/services is improved, costs decreased because of less

work. With fewer mistakes fewer delays and better use of machine, time and

materials, productivity would inevitably improved and the organization

would capture the market with better quality and lower price. But quality is a

strategy that must permeate an organization throughout its business

activities. Firms nowadays pay attention to designing the product to

eliminate recurring defects in production and also manufacturing processes

are designed to reduce errors. The continuous improvement of

products/services will yield greater value to customers by paying attention toquality. The cost of quality is the cost incurred in producing poor quality

goods and services and continuous improvements, the cost of quality are

driven down. And with lower costs and higher quality, the firms can provide

more value to customers.

Total quality is, therefore, different from other strategies and systems. This

management systems and behaviors require firms to focus on external

customers and on cross functional horizontal systems and/or process cross

functional systems are activities and resources that are linked to provide

value to customers and that span at least two of the functions of design,

production, marketing and finance as well as personnel (human resource)

with fewer levels of management less direct supervision, continuous process

improvement, cross-function teams and more employee training, Quality

improvement is the fundament business strategy of this 21st century. No

business without it will survive in the global market place.

Total Quality Management shows the managers how to operate within a

business by focus on customers. Consistently satisfying their needs

companies which adopt quality management practice, are said to beexperiencing over all improvement in corporate performance, better

employee relations higher productivity, greater customer satisfaction,

increased market share and improved profitability. But there is a positive

relationship between quality and profitability, and for measures of

profitability return on sales and return on investment. Return on is a

measure of profitability in which profit are expressed as a percentage of


7/10

sales. Return on investment is a measure of profitability in which profits are

expressed as a percentage of investment. As from customer satisfaction, it is

also very important to focus on competitors in the formulation and

implementation of business strategy. This is because it helps the firm find

ways to improve process and systems through the activity of market. It

should be noted that some competitors pursue a follower strategy because

they are not the first to market a new product and therefore destined to

realize below average financial terms. Since, other set of firms pursue leader

strategy, a good company with TQM needs to study and possibly even

emulate the best processes and systems. Thus, analyzing what the best

competitor or leading companies in the industries are doing in order to

discover the products, processes and practices that satisfy customer needs. It

is in this regard that value quality is being imbibed as a culture in

organization. The business objective is to move the firms customers to a

position of higher value realized and lower value sacrificed so that the bestnet value in the industry is offered. For new product development systems,

TQM firm frequently utilize personnel from most of the function areas in the

company to work together on the design of new products. The design

engineering department of the company develops product quality

programmes. Such department addresses issues affecting the customer,

quality of the product, better quality service and improvement on past

production as well as after sales satisfaction, But as consumers demand high

quality at low prices consideration must be given to customers

characteristics vis a viz customers attitudes, beliefs, expectation etc as

quoted by some authors, a customer-service audit asks managers the

following questions:-

1. What are customers objectives?

2. What services are provided

3. How does your firm compare with competitors?

4. What services do customers want?

5. What are customers service patterns of demand

6. What trade offs are your customers prepared to make?

The following guiding for effective customers service progrmmes

implementation are provided:-

I. Educate customers

II. Educate employees

III. Be efficient first, nice second.

IV. Standardize service response system


8/10

V. Develop a pricing policy

VI. Involve subcontractors of necessary

VII. Evaluate customer service

TQM strategies are derived basically from the realization that output is

strictly a function of input and that quality is the result of the result of inputs

and their manner of usage. In practical operations, this spells out into the

following issues (Ajanji, E.O 200:44 quality Drummond, 1994: 14)

a) The quality and sustainability of inputs

b) The manner in which inputs are delivered stored, and transformed into

a product or service.

c) The manner in which the product or service is delivered to the

customer used and installed.

QUALITY TOOLS

The Total Quality Management makes use of different instrument in arrivingat good decision and effecting employee performance. These tools comprise

of:-

Flow chart: this is one of the most important actions in bringing

process control to both administration and operations. It helps in

defining, understanding and solving management problems.

Control chart: it is a method of statistic process control (SPC) that can

be used in the service industry to control any process. It uses statistics

to tell which to adjust the process and when to leave it alone, and also

recognizes that variations always exists and helps in controlling thedistribution rather than individuals.

Histogram: This is a graph that shows how variable measurement of a

given object or process are, if depicts the frequency distribution of

data collected on a given process.

Brainstorming: It is an organized process and techniques used for

generating situations. It believes in collecting efforts: team or group

work that produces greater and better results than single or individual

efforts as it provides opportunity for creative thinking, or ideas and

also promotes effective joint decision making.

Cause and effect Diagram: This is a structural diagram used to

separate and defined causes. The effects are the symptoms which

enable one know the problems at hand and how to solve them.

Pareto Diagram: This is a universal tool and a principle that can be

applied in any field. It visualizes data to assist investing and analysis


9/10

and also for establishing priorities, showing percentages,

communication aids, and showing recurring changes.

Statistical Technology: It should be recognized that statistics play a

vital role in quality improvement. This is because the change that

occurs must be based on facts and not opinions. Facts, therefore,require data which must be analyzed to determine variation and

prompt reactions to the problem. And a tool used extensively in

research, the total quality management involves all business functions

that make use of or refer to research and development.

CONCLUSION

There are many businesses that fail because of managerial inexperience or

ineptitude. This is a as a result of poor management decision making and

poor planning especially with regards to the quality of service or product

provided. The adoption of a TQM approach in the administration of all typesof business will help to promote excellence, enhance the quality of service

provided and ensure sustainability and growth of the business. The concept

of quality in business must, therefore, start with Quality Control System;

control of quality during an operation process and at the past process stage.

This gives credence to Quality Assurance by removing root causes of poor

quality and move on to Total Quality that apply the quality assurance to

every company activity so that zero defects are achieved. Lastly, is the idea

of Total Quality Management that ensures continuing improvement process

and getting things done correctly first time. It also calls for participation ofevery and maintenance of good relationship and team spirit. This must

reflect the efforts to satisfy customers or the relevant public in all situations.

In achieving this goal and that of the other objectives of the business,

continuous changes are inevitable. Thus, living in an environment of

constant changes require creativity flexibility and open mindedness of the

management as well adaptation of quality standards in the companys

product and/or changes require creativity flexibility and open mindedness of

the management as well adaptation of quality standards in the companys

product and/or performance. The business activities and programmes orplans will succeed better if the principles of TQM, are acceptable and

adopted by both the planners and executors of relevant programmes.


10/10

REFERENCES

Ajayi, E. O. (2002) Total Quality Management as a Catalyst for National

Prosperity Management in Nigeria Journal of Nigerian Institute of

Management January, March, Vol.

Drummond, it (1994) Total Quality Management: What Quality is all about.

London Kogan Page Ltd.

Ojo, Elizabeth Fadeke etal (1995) Total Quality Management andorganization Effectiveness in the Manufacturing Sector. A case study of

NNPC being a research project submitted to secretary studies Department in

school of Management and Business studies Lagos State Polytechnic in

December

Udeh, John O. (1999) Entrepreneurship in the 21st century. Enugu the

Catholic institute for Devept. Justice and Peace.

Witcher, Barry J. (1990) Total Marketers: total Quality and the marketing

Concept QRM: The quarterly Review of marketing published by London:

the Chartered institute of Marketing (CIM) Vol. 15 No 2.

Sannie, M.B.A (2000) Customer Relation in total quality management

(TQM)

A paper presented at a seminar organized by DTS Consultancy Services in

Lagos, Otta December 3-5, 2001.

total quality management -j. oyetade

Documents