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Home » Operations Management » What is Total Quality Management?

What is Total Quality Management?

April 17, 2019 | By Hitesh Bhasin | Filed Under: Operations Management

The concept and methodology of Total Quality Management can be defined as an extensive and structured organization management approach that mainly focuses on the continuous quality improvement of products and services offered by the firm by using continuous feedback. Joseph Juran was one of the founders of Total Quality Management concept just like William E. Deming.

Table of Contents

  • Breaking Down Total Quality Management :
  • Primary Principles of Total Quality Management :
  • Industries Using Total Quality Management :
  • 8 Ways to Implement Total Quality Management  :
    • 1) Focus on the customer
    • 2) Involvement of the Employees
    • 3) Process-centered
    • 4) Integrated system
    • 5) The strategic and systematic approach
    • 6) Decision making based on facts
    • 7) Communication
    • 8) Continuous improvement
  • Practical approach of Total Quality Management :
    • The basic assumptions are:

Breaking Down Total Quality Management :

Total Quality Management originated in the industrial sector of Japan in the year of 1954 and since that time the concept has been developed and can be used for almost all types of organizations and industry domains such as schools, motorway maintenance, hotel management, and churches.

Nowadays, the approach is also used within the e-business sector and it perceives quality management entirely from the standpoint of the customer.

The vital objective of Total Quality Management is to do things right the first time and over and over again. This saves the time that is required to correct poor work and failed product and service implementations in the organization.

It can also be set up separately for an organization as well as for a set of standards that must be followed, for instance, the International Organization for Standardization (ISO) in the ISO 9000 series and is known worldwide. Total Quality Management concept aptly uses strategy, data, and effective communication channels to integrate the required quality principles into the organization’s work activities and the overall culture.

It is a structured approach to the overall organizational management and its main focus is on the process to improve the quality of an organization’s outputs, including goods and services, through continual improvement of internal practices and work procedures.

The standards set as part of the TQM approach can reflect in both internal priorities and the various industry standards currently in place.

Also Read  What is Operational Risk Management or ORM? Definition and Stages

Industry standards can be defined at multiple levels and may include adherence to various laws and regulations governing the operation of the business domain. Industry standards can also include the production of items to an understood custom, even if it is not backed by official rules and regulations.

Primary Principles of Total Quality Management :

Total Quality Management is considered a customer-focused approach and it mainly aims for continual improvement of business operations of the firm.

It strives to ensure all the associated employees work toward the common goals of improving product and service quality, as well as improving the work procedures that are in place for the production process.

Special emphasis is laid on the fact-based decision making, using performance metrics to monitor the progress on regular basis.

High levels of organizational communication are encouraged for the rationale of maintaining employee involvement and morale at work.

Industries Using Total Quality Management :

Total quality management - 1

While TQM actually originated in the manufacturing sector, its principles can be applied to the various organizations and industry domains.

With the focus on the long-term change over short-term goals, it is mainly designed to provide a cohesive vision for systemic change within the organization.

With this aspect in mind, the concept of Total Quality Management is used in various industries including manufacturing, banking and finance, and medicine among others.

These techniques can be applied to all departments within the organization and it helps to ensure all employees are working toward the same goals set forth for the company, improving work function in each area.

All the involved departments include administration, marketing, production, HR, and employee training.

8 Ways to Implement Total Quality Management  :

1) Focus on the customer

When using the approach of Total Quality Management it is very crucial to remember that only customers determine the level of quality of the products and services. Whatever efforts are made by the firm with respect to training employees or improving the work processes, only customers determine through evaluation or satisfaction measurement, whether your efforts have contributed to the continuous improvement of product quality and services or not.

2) Involvement of the Employees

Employees are an organization’s first and internal customers. Employee involvement in the development of products or services of an organization is quite imperative as it largely determines the quality of these products or services. Do ensure that you have created a work culture in which employees feel they are involved with the organization and its products and services offered to the market.

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3) Process-centered

Process thinking and process handling both are a fundamental part of the Total Quality Management approach. Processes work as the guiding principle and people support these processes based on the basic objectives that are linked to the mission, vision, and strategy of the company.

4) Integrated system

Following principles of process-centered, it is quite important to have an integrated organization system that can be modeled for example ISO 9000 or a company quality system for the understanding and handling of the quality of the products or services of the company.

5) The strategic and systematic approach

A well structured strategic plan must embrace the integration and quality development and the development or services of the firm.

6) Decision making based on facts

Decision-making within the firm must be based on facts and not on opinions such as emotions and personal interests. Data gathered should support this decision-making process.

7) Communication

A communication strategy must be formulated and structured in such a way that it is in line with the mission, vision, values, and objectives of the firm. This strategy comprises the stakeholders, the level within the company, various communications channels and the measurability of effectiveness, timeliness, and more.

8) Continuous improvement

By using the right measuring tools and innovative and creative thinking strategies, continuous improvement proposals will be initiated and implemented so that the organization can develop into a higher level of quality processes and products.

Practical approach of Total Quality Management :

When you implement the concept of Total Quality Management, you implement a concept and not just a system.

It is not a system that can be implemented but is a line of reasoning that must be incorporated into the overall organization and its work culture.

The practice has proved that there are a number of basic assumptions that contribute to a successful rollout of the process of the Total Quality Management within the firm.

The basic assumptions are:

  • Train senior management on the aspects of Total Quality Management principles and ask for their commitment with respect to its proper roll-out.
  • Assess the current culture of the firm, customer satisfaction, and the work quality system.
  • Senior management of the firm determines the desired core values and principles and communicates this within all the levels of the organization.
  • Develop a basic Total Quality Management plan using the basic starting principles and fundamentals mentioned above.
  • Identify and prioritize customer needs and of the market and determine the organization’s products and services to meet those specific needs and requirements.
  • Determine all the critical and imperative work processes that can make a substantial contribution to the quality of products and services.
  • Create teams that can work on process improvement for instance quality circles in the firm.
  • Managers support these teams using planning, resources, and by providing required training.
  • Management integrates all the desired changes for improvement in daily work processes. After the implementation of improved processes, work standardization takes place.
  • Evaluate progress on the continuous basis and adjust the planning or other issues, as and when necessary.
  • Stimulate employee involvement at a high level. Awareness and feedback lead to an overall improvement of the entire work process.
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This was a complete understanding of Total Quality Management.

Liked this post? Check out the complete series on Operations Management

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About Hitesh Bhasin

Hitesh Bhasin is the Founder of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

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