8 Principles of TQM: The Eight Principles of Total Quality Management (TQM) are Customer Focus, Leadership, Involvement of People, Processes Approach, System approach to management, Continual improvement, Factual approach to decision-making, and Mutual beneficial supplier relationship.
Definition of the Quality
Quality means satisfying the demand of the customers by providing excellent products and services. Researchers defined quality in many ways, but the essence of the definition is almost similar. Edward described that “quality is the ability to exceed the customer’s satisfaction by providing service and product.” In addition, Crosby defined that “quality is conformance to the requirements of customers.” Moreover, Juran defined quality as being ‘fitness for use. So, quality is the standard or degree of the products or services that can differentiate them from others by measurement.
8 Practices of TQM
Total Quality Management (TQM)
Total Quality Management (TQM) refers to the management process that includes the commitment and dedication of every employee in the organization to maintain a high-level quality in every sector and attention to customer gratifications. The employees of the company have to be informed about the strategy before implementing it in the organization. In the mid-1980s, total quality management (TQM) was introduced based on the Company-Wide Quality Control (CWQC) and benchmarking process. Later, many scholars, such as Juran, Deming, and Ishikawa, gave their contributions to the practices and improved the content of TQM. The most important contributions of the TQM are Deming 14 points, Juran quality trilogy, and Ishikawa’s Fishbone diagram, and CWQC (Yang, 2012).
Figure-1: Total Quality Management
Many worldwide companies practice the Total Quality Management (TQM) strategy, for example;
- Ford Motor Company
- Phillips Semiconductor
- SGL Carbon
- Motorola and
- Toyota Motor Company.
The 8 Practices of TQM
The Eight Principles of Total Quality Management (TQM) are 1. Customer focus, 2. Leadership, 3. Involvement of people, 4. Processes Approach, 5. System approach to management, 6. Continual improvement,7. Factual approach to decision-making, and 8. Mutual beneficial supplier relationship.
In the mid-1990s, the eight basic principle or elements of the total quality management (TQM) was proposed by some well-known philosophers (Evans, 2013). These eight principles of TQM entirely work together to develop the process and to yield satisfaction for the customers.
Principle-1: Customer focus
The first and prime principle of total quality management (TQM) is to focus on the customers who are buying the products and services as well as potential customers. Customers are the people who justify the quality of the products and services. Customers will feel that they have spent their money on a quality product if it can last long to fulfill demands. You can exceed customer satisfaction only when you know their demands, so align company objectives with the client’s needs.
Leadership is essential in maintaining unity among employees to achieve interdependent goals (Evans, 2013). Although there are mainly three types of leadership in the industry, the democratic leadership style is the best to perform well. Leaders can form a convenient environment to work effectively inside the organization, in which all employees work to achieve the organization’s goal.
Principle-3: Involvement of people
People from every level in the organization give their all-out efforts, dedication to the organization’s profits. The total employee commitment enables the industry to develop productivity, process and raise sales growth. So, all the employees in the organization have to be well-trained, committed, and dedicated to achieving an interdependent goal on time. The industry needs to create a responsive environment where every employee will be motivated to complete the task properly. The activeness, motivation, and retention of the employees can yield customer gratifications. The involvement of people can produce effective teamwork. According to Evans (2013), three types of teamwork are vertical, horizontal, and inter-organization.
Principle-4: Processes approach
The company needs to improve the process consistently to yield good output. A good result of the business from the processes approach can bring customer satisfaction. Hence, TQM focus on the process approach strongly to assure the quality of the product or service.
Principle-5: System approach to management
The total quality (TQM) highlights executing the strategy in a systematic approach. The industry makes a proper plan of implementation, and they collect data while applying those processes.
The International Organization for Standardization (ISO) describes this principle as:
“Identifying, understanding, and managing interrelated processes as a system contributes to the organization’s effectiveness and efficiency in achieving its objectives.”
Principle-6: Continual improvement
Continual improvement of the process is an essential step for every industry to make their customer are satisfied. Therefore, TQM assists the company in keeping watching the constant improvement of the system to improve the service and product of the industry.
Principle-7: Factual approach to decision-making
It eases the way of taking the decision based on the information collected from data. Making a decision based on the fact is an effective way to customer satisfaction. This principle uses the actual method to collect and analyze data.
Principle-8: Mutual beneficial supplier relationship
Usually, a business is conducted by multiple combined departments, and each of the departments is assigned individual tasks, although the function of these departments is interconnected. The total quality management process helps all sections work combined to achieve an interdependent objective. The company uses visual aids and flowcharts to understand how employees perform perfectly. Executing the total quality management (TQM) properly is not easy; TQM represents a significant cultural shift, so the company needs to implement it slowly and accurately (Evans, 2013).
In addition to the eight principles, effective communication is the fundamental principle to conduct business successfully. Everybody in the company has to be conscious of the plan, method, and strategy to achieve a goal. The risk of failure can increase due to the communication gap. Make sure that every employee is aware of their duty and involve them in the decision-making session. It will motivate the employees, letting them know that they are contributing to the industry. However, Effective communication reduces silos and increases coordination and cooperation.
The advantages of the 8 Principles of TQM
At first, Japan identified the advantages of total quality management (TQM) in the mid-1950s. After a few decades, the benefit of the TQM had been disclosed all over the world. The most important benefits of the TQM are:
- Firstly, Develop the quality of products and services to satisfy customers.
- Secondly, Motivate employees morally.
- Thirdly, Boost productivity in the organization.
- Fourthly, Reduce production costs and faults.
- In addition, Raise profits margin.
- Further, Make processes more efficient and reliable.
- Moreover, it Involves employees.
- Additionally, it Improves the condition of the work environment.
- Finally, Improve the communication process.
Total Quality Management Tools
There are many tools of the TQM that help the industry to operate smoothly with profit. These tools can help the industry in many approaches. The most essential approaches are;
- Firstly, Identify difficulties with quality.
- Secondly, Analyze data.
- Thirdly. Collect information.
- Moreover, Identify the leading causes of the problems.
- Finally, Assess the results.
Quality Strategy to Profitability in the Organization
Since the 1980s, many quality strategies or quality management systems have been launched to maintain the quality of the products and services in the organization, such as total quality management system (TQM), Six-sigma, reengineering, skeletal system, and so on (Yang, 2012). Yang (2012) argued that most of the quality improvement strategies had been executed by the company worldwide to yield good results by solving problems or faults.
The History and Evolution of Quality Management Strategies
- Inspection quality control (IQC), since 1910
- Statistical process control (SPC), since 1930
- Total quality control (TQC), since 1950
- Company-wide quality control (CWQC), since 1970
- Total Quality Management (TQM), since 1985
- Six-Sigma (6σ), since 1986
- Business Excellence Model, since 2000
- The development and implementation system of the DMAIC Six Sigma program
Yang, C. C. (2012). The integration of TQM and Six-Sigma. Total Quality Management and Six Sigma, 219.
- Evans, J. R. (2013). Quality & performance excellence. Cengage Learning.
- Yang, C. C. (2012). The integration of TQM and Six-Sigma. Total Quality Management and Six Sigma, 219.
Citation for this Article (APA 7th Edition)
Kobiruzzaman, M. M. (2021). Total quality management (TQM): Eight Principles and Practices of TQM. Educational Website For Online Learning. https://newsmoor.com/total-quality-management-tqm-eight-principles-and-practices-of-tqm/