Definition:
Total quality management (TQM) has developed the traditional
ways of doing business. It helps organizations to survive and
compete in the domestic and global competitive market.
Total – the whole
Quality – the degree of excellence a product or
service provides
Management – the art of handling, controlling and
directing
TQM is defined as both a philosophy and a set of principles that
provide the foundation for continuously improving the organization.
It is the application of quantitative methods and human resources
for continuously improving all the processes of the business and
also continuously developing the products/services of the
organization that can meet customers’ current and future potential
needs.
Basic Approaches / Basic Concepts of TQM (6):
1. Commitment from the management to provide long-term top-
to-bottom organizational support: Management must
participate in the quality program, quality council, develop a
clear vision, set long-term goals, lead the programs. As TQM is
a continuous process, management must entrench it into the
culture of the organization. Always talk about TQM with the
workforce of the organization.
2. Focus on customers both internal and external: The key to an
effective TQM program is to focus on the customers.
3. Utilize the entire internal workforce: TQM is an organization-
wide program, so every one of the organization must
participate in this program. This must be everyone’s
responsibility. They must be provided with appropriate training,
resources, motivation so that they spontaneously and
effectively participate in this long-term continuous program.
4. Continuous improvement of all the business and production
processes: Quality improvement projects such as on-time
delivery, customers satisfaction, supplier management, billing
error rate, cycle time, scrape reduction, etc.
5. Treat suppliers as partners: Business organizations must focus
on the quality of supplies, not on the price of supplies. Focus
on building partnering relationships with suppliers not on the
number of suppliers.
6. Establish performance measures for the process: Performance
measures such as absenteeism, customer satisfaction should
be measured for each functional area. Quantitative data are
used to measure processes.
Purpose:
The purpose of TQM is to provide a quality product and/or service
to customers. This helps the following:
1. Increase productivity
2. Reduce cost
3. Enhance competitive position in the marketplace
4. Generate desired profit
5. Grow
6. Increase job security
Gurus of TQM:
1. Shewhart
2. Deming
3. Juran
4. Feigenbaum
5. Ishikawa
6. Crosby
7. Taguchi
Awareness:
Today’s customers at first consider the quality of products and then
they consider the price of the product. Many quality improvement
projects can be achieved by using the same workforce, using the
cost structure, without making new investments. Quality
improvement doesn’t mean only the development of products or
services, instead, it means the development of every part, process,
system, individual, team, department, product and service of the
organization. Quality improvement is more concerned about
preventing product/service/process defects over correcting
problems after they occur. TQM is a long process.
Dimensions of quality:
1. Performance
2. Service
3. Features
4. Reliability
5. Durability
6. Response
7. Reputation
8. Aesthetic
9. Conformance
Obstacles:
1. Lack of management commitment
2. Inability to change organizational culture
3. Improper planning
4. Lack of continuous training and education
5. Incompatible organizational structure and isolated individuals
and departments
6. Ineffective measurement techniques and lack of access to data
and results
7. Paying inadequate attention to internal and external customers
8. Inadequate use of empowerment and teamwork
9. Failure to continually improve
Benefits:
1. Improved quality
2. Increase productivity
3. Increase sales
4. Increase operating income
5. Profitability
6. Decrease cost
7. Increase market share
8. Increase stock price
9. Improve financial performance
10. Increase total asset
11. Increase customer satisfaction
12. Increase employee satisfaction
13. Employee participation
14. Increase teamwork
15. Improve relationships among workers
16. Communication
