What is Total Quality Management (TQM)?
→ TQM is a continual process improvement approach.
→ With the help of TQM implementation, any business can improve customer satisfaction.
→ Total Quality Management is a management approach for long-term success with the help of customer satisfaction.
→ TQM is more about the culture.
→ In this, all members of the organization take part in various improvement activities such as process, product, service, and system improvement.
History of Total Quality Management
→ TQM is a management philosophy that emerged in the mid-20th century.
→ The main goal of this philosophy is to improve the quality of products and services through continuous improvement.
→ During year 1930s to 1950s:
→ Dr. Walter Shewhart has developed methods for statistical analysis and control of quality.
→ Dr. W. Edwards Deming implemented statistical analysis methods for quality control during the redevelopment of Japanese Industries.
→ Philip B. Crosby has promoted the zero defect concept and that was accepted by many companies.
→ Shewhart has developed statistical control charts as a QC tool.
→ During year 1950s to 1960s:
→ The Principles of TQM gained significant traction in Japan with the help of W. Edwards Deming.
→ Japanese companies such as Toyota Motor Corporation incorporated TQM principles and found remarkable success in terms of quality and efficiency.
→ The concept of TQM gained popularity in the West during the 1980s.
→ This was partly due to the success of Japanese companies and their adoption of TQM principles.
→ Total Quality Management is continually accepted globally.
→ Also modern business has well accepted this concept to fulfill customer's requirements and improve efficiency and productivity.
→ Quality Award Programs such as the Deming Prize and the Malcolm Baldrige National Quality Award have been started globally to promote quality culture.
⏩Dr Juran has developed the Juran Trilogy which involves three stages:
1. Quality planning:
→ In this stage, we need to set goals and objectives, identify customers’ needs, and develop products and processes.
2. Quality control:
→ In this stage, performance is evaluated and then compared with the goals and objectives set in the previous stage, and finally, based on requirements necessary implementations are made.
3. Quality improvement:
→ In this stage, resources and training are provided, and controls are put in place.
Eight Principles of Total Quality Management
⏩Refer to the below-mentioned 8 fundamental principles of TQM.
- Customer Focus
- Effective Leadership
- People Involvement
- Process-Centric Approach
- System Approach
- Continual Improvement
- Fact Based Decision-Making
- Relationship Management
1. Customer Focus:
→ The fundamental goal of TQM is to meet customer's needs and expectations.
→ In other words, we can say that our final product or process shall meet the customer's requirements and expectations.
→ By customer focus any business can get the loyalty of the customers.
2. Effective Leadership:
→ The role of leadership is important in TQM implementations.
→ Implementing different initiatives and strategies will help leaders to achieve the business goals.
→ Leaders at each level can establish a direction that is in line with the business objectives and goals.
→ They ensure the training of all people before implementation starts.
3. People Involvement:
→ While implementing TQM, organizations need to create a comfortable environment where people will feel motivated and empowered.
→ People along with management are responsible for the quality of the product or service.
→ With the help of this a business can significantly improve productivity and, consequently, the quality of output.
→ On a regular basis, relevant training is given to the people for their skill and knowledge improvement.
→ This will improve the morale and motivation of the people.
→ Eventually, it will help to grow the business.
4. Process-Centric Approach:
→ The process-centric approach means we need to focus on process improvement to improve the overall quality of products and processes.
→ The product or service passes through different QC checks before it reaches the end user.
→ That means it is monitored and assessed at each production level.
→ So the process approach of TQM focuses on inspecting and improving the process to improve the product and service quality.
→ Understanding the inputs and outputs of each process allows businesses to identify the potential bottlenecks and implement the necessary improvements.
5. System Approach:
→ In the system approach, need to standardize the processes.
→ We can implement a good system by reducing the different wastes from processes.
→ A good process has less variation and more stability.
→ We can monitor the process to identify different abnormalities from the process.
→ Successfully implementing the above-mentioned points will improve the product and service quality.
6. Continual Improvement:
→ Quality improvement should be a continual process.
→ We need to effort continually for product and service improvement for long-term business growth.
→ If we are not focussing on continual improvement then over the period of time the quality will be degraded.
→ Continual improvement will help the organization to achieve the goals and objectives of the business.
7. Fact-Based Decision-Making:
→ The business must make decisions based on the collected data.
→ That is also known as the fact-based decision.
→ All people from various departments should participate in the quality improvement program.
→ TQM adopts a culture of fact-based decision-making, in fact-based decision making the decisions are supported by facts and data rather than assumptions or perception.
→ Fact-Based Decision-Making approach ensures that decisions are objective, reliable, and effective.
→ We can also identify improvement opportunities based on data or facts.
8. Relationship Management:
→ Relationship management is very important for increasing trust between each party.
→ A well-maintained relationship with different stakeholders such as suppliers, customers, and employees will ensure proper quality control procedures and honest feedback.
→ With TQM, organizations can establish effective communication between all stakeholders.
→ That will help to achieve the organizational goals and objectives.
→ Better relationship management leads to transparent communication, fair dealings, and a commitment to meeting each party’s needs and expectations.
→ Successful relationship management can boost reputation, and increase customer retention.
→ With good relations, we can ensure the sustainable growth and success of our organization.
Benefits of Total Quality Management:
→ Improved Customer Satisfaction and Retention
→ Reduce waste, improve processes, and increase efficiency
→ Improve employee morale, motivation, and job satisfaction.
→ Improved competitiveness of the business.
→ Improve business's profitability
→ Reduction in Production Cost
→ Higher Productivity
Case Study of TQM Implementation at Toyota Motors:
→ Toyota Motor Corporation has been started as a small car manufacturer around the year 1937.
→ Toyota is known for its quality.
→ Also, Toyota Motor's main focus is on customer first, careful customer targeting and product offering across the different categories, and continuous improvement (Kaizen).
→ This has made Toyota a global and trustable player and its car is well-accepted across the world.
→ Toyota Motors Corporation introduced statistical quality control (SQC) in 1949 and later the "creative idea suggestion system" to encourage workers to contribute ideas to help solve company problems.
→ These concepts are at the core of the Toyota Production System (TPS), also called the “Toyota Way,” which has led to some stunning successes.
→ Refer to the below mentioned some of the remarkable successes of Toyota.
→ With an annual sale of more than $225 billion, It rose to the status of the world’s largest auto manufacturer, beating General Motors in 2007.
→ The company groomed a set of creative, multi-skilled, and highly motivated employees who became dedicated to improving the company’s performance.
→ In its history, it has received various prestigious awards for quality management.
→ Among them is the Deming Application Prize in 1965, and the Japan Quality Control Award in 1970.
Conclusion:
→ Total Quality Management (TQM) is a comprehensive and systematic approach.
→ It focuses on continuous improvement in different aspects of an organization.
→ It aims to enhance the quality and performance of the processes, products, and services.
→ This methodology helps to meet or exceed customer expectations.
→ It focuses on customer satisfaction, continuous improvement, employee involvement, process optimization, and data-driven decision-making.
→ All TQM aspects help us to improve competitiveness.
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