Principles of Total Quality Management & Eight Principles of TQM

Principles of Total Quality Management & Eight 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.

Quality Definition in Business

Quality in business means satisfying 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 customers’ requirements.” 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.

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 for customer gratifications. The employees have to be informed about the strategy before implementing it. 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, contributed to the practices and improved the content of Total Quality Management. The most important contributions of Total Quality Management are Deming Cycle, Juran quality trilogy, Ishikawa’s Fishbone diagram, and CWQC (Yang, 2012). For example, Netflix practices Total Quality Management, and Netflix organization changes confirm that the authority focuses on maintaining the TQM tools.

What are the Principles of Total Quality Management?

Principles of Total Quality Management

The 8 Principles of TQM are:
  1. Customer Focus
  2. Leadership
  3. Involvement of People
  4. Processes Approach
  5. System Approach
  6. Continual Improvement
  7. Factual Approach to Decision-Making
  8. Mutual Beneficial Supplier Relationship.
Principles of Total Quality Management (TQM)- 8 Principles of TQM
Principles of Total Quality Management (TQM)- 8 Principles of TQM

In the mid-1990s, the eight basic principle or elements of 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 yield customer satisfaction.

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. So, the company needs to ensure that the 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 needs. So, successful companies align their objectives with the client’s needs.

2. Leadership

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. So, leadership seems to be a significant principle of total quality management.

3. Involvement of People

People from every level give their all-out efforts and dedication to the organization’s profits. The total employee commitment enables the industry to develop products 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. Additionally, the industry needs to create a responsive environment where every employee will be motivated to complete the task correctly. The employees’ activeness, motivation, and retention can yield customer gratifications. The involvement of people can produce effective teamwork. According to Evans (2013), three types of cooperation are vertical, horizontal, and inter-organization.

4. Processes Approach

The company needs to improve the process consistently to yield sound output. A good result from the processes approach can bring customer satisfaction. Hence, TQM focuses on the process approach to assure the quality of the product or service.

5. System Approach to Management

The total quality (TQM) highlights executing the strategy systematically. The industry makes a proper implementation plan, and they collect data while applying those processes.

The International Organization for Standardization (ISO) describes this principle: “Identifying, understanding, and managing interrelated processes as a system contributes to the organization’s effectiveness and efficiency in achieving its objectives.”

6. Continual Improvement

Continual improvement of the process is an essential step for every industry to make their customer satisfied. Therefore, TQM assists the company in keeping watching the constant improvement of the system to improve the service and product of the industry. Above all, continual improvement assists the company in achieving competitive advantages, and it is the most critical principle among the eight principles of TQM.

7. Factual Approach to Decision-Making

A factual approach to decision-making is another crucial principle of TQM. It eases making decisions based on the information collected from data. Making a decision based on facts is an effective way to achieve customer satisfaction. This principle uses the actual method to collect and analyze data in order to make decisions for the company’s progress.

8. Mutual Beneficial Supplier Relationship

Mutual beneficial supplier relationship is another important principle of total quality management for building rapport with suppliers. It is also called reciprocity. 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 total quality management (TQM) is not easy; TQM represents a significant cultural shift, so the company needs to implement it slowly and accurately (Evans, 2013).

Conclusion

The Eight Core Principles of 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. These are examples of total quality management principles, also known as the eight pillars of total quality management. However, the eight principles of TQM are fundamental elements in driving a 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 not maintaining the principles of total quality management. So, the authority should ensure that every employee is aware of them. It will motivate the employees, letting them know that they contribute to the industry. Apart from that, effective communication reduces the risk of failure and increases coordination and cooperation.

Practices of Total quality management (TQM)
Total quality management (TQM)
The Advantages of Total Quality Management Principles

Although Japan identified total quality management (TQM) advantages in the mid-1950s, now the benefit of the TQM is disclosed worldwide. The most important benefits of the TQM are:

  • The TQM principles develop the quality of products and services to satisfy customers; because it motivates employees naturally and boosts their productivity in the organization.
  • Additionally, the principles of TQM reduce production costs and faults and make processes more efficient and reliable.
  • Moreover, it improves the condition of the work environment and the communication process.
  • Finally, the core principles of TQM raise profits margin.
Total Quality Management Tools

The researchers introduced many tools of the TQM that help the industry operate smoothly with profit. These tools can help the industry in many approaches. For example, the fundamental strategies are; identifying difficulties with quality, analyzing data, collecting information, identifying the leading causes of the problems, and assessing the results.

Quality Strategy to Profitability in the Organization

Since the 1980s, researchers have represented diverse quality management systems 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. The company has executed the most quality improvement strategies 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
References

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. (2022). Principles of Total Quality Management & 8 Principles of TQM. Newsmoor- Best Online Learning Platform. https://newsmoor.com/total-quality-management-tqm-eight-principles-and-practices-of-tqm/

Deming PDCA Cycle Four Stages, Advantages, and Disadvantages

Deming PDCA Cycle- Four Stages, Advantages, and Disadvantages. PDSA Cycle Pros and Cons. PDSA or Deming Cycle Revolution. 4 Stages of PDCA.

Deming PDCA Cycle

Deming PDCA cycle refers to a repeated four-step management model that ensures the continuous improvement of products and services in the industry. In the 1950s, a famous management scholar Dr. William Edwards Deming, introduced the PDCA method; therefore, it is also known as the Deming cycle or Deming Wheel. It is a very famous method to solve problems to yield the highest quality result. The full meaning of PDCA is the Plan–Do–Check–Act is a four-step action method. In addition, it has many names, such as the PDSA abbreviation of the Plan–Do–Check–Adjust, the Deming cycle or circle or wheel, the Shewhart cycle, and the control cycle or circle.

The Four Stages of the Deming Cycle

The Four Stages of the Deming Cycle are Plan, Do, Study or Check, and Act. These are the inevitable elements of the Deming cycle.

1. Plan

PLAN is the initial step of the four steps method that identifies the problem and opportunities to suggest recommendations. In addition, it analyzes and describes the overall current situation of the project. The authority recruits a team to understand the full process of the project in this stage; they will identify the problems that need to be changed and find solutions to fix the problems. You have to find out the answers to some basic questions regarding the project. The questions are as follows;

  • Firstly, what is the main problem that must need to be solved?
  • Secondly, what kind of resources do you have now?
  • In addition, what resources do you have to have?
  • Moreover, what is the solution that you have taken with resources?
  • Finally, how long will it take to analyze the problems and implement the planning?
2. Do

The DO phase is the second stage of the Deming cycle, where the testing of the solution starts to execute to identify the results. After completing the planning step, you have to take action to solve the problems. You will apply all plans that you have taken in the first stage. Some unwanted problems can emerge in this stage, so you have to be aware to confront them. For increasing your confidence level, you can apply your actions to a small arena in the project. It is a subtle way to control the situation properly as well as avoiding an unpredicted big mistake. All team members stay alert at this stage to play their roles and responsibility. In addition, you with your team members will take some initiatives mentioned below:

  • Keep a record of what happened and what is happened?
  • When do you apply the planning?
  • Collect data from the planning stage.
  • Try to use a check sheet, swim lane map, and flowchart to capture data.
3. Study or Check

Study or check is probably the most important step of the Deming cycle. You must pay attention to the CHECK stage if you want to scrutinize the output that yielded from the earlier stage. It will help you to avoid repeating mistakes and clarify the success of your planning and applying steps. This stage will allow you to audit your plan’s performance; you will be confirmed whether the plan works perfectly or not.  Additionally, your team will identify the problematic portion of the project to eliminate them in the future. You would be able to discover the root cause of the problem if something went wrong. In short, this stage will assess the system’s effectiveness and help you decide whether the theory is helpful or not.

Example: Appraisals or  Gap analysis.

  • In this stage, you have to answer some questions mentioned below.
  • Is the system effective or not?
  • Do you want to continue this system or need to change it?
  • Have you outlined a list including the unexpected results, failures, successes, and outcomes?
4. Act

ACT is the final stage of the system that finalizes the perfect solution to implement it. In this stage, your organization should follow adapt, adopt, and abandon factors. Adapt refers to changing and modifying the PDSA circle for the next test. Adopt indicates considering expanding the system to all departments in the organization. Abandon means modify your full approach and repeat the PDCA circle.  In sum, it is the step of standardization that is considered standardized when goals are exceeded.

The Pros and Cons of Deming Cycle or PDSA / PDCA

Firstly, PDSA is a simple and effective process to resolve a new and recurring problem in the industry. In addition, it is a repeated approach that will allow you to measure results without a waste of time. Moreover, it is a risk-free cycle to apply a small scale in the project; therefore, no need to change the full process if it doesn’t work.

In contrast, the full process of the PDSA is slow when applying the four steps in the industry to yield the final result. It is not a straightforward execution process that can apply to urgent problem-solving issues. Additionally, you need to use some resources, including effective team members, to ensure that each circle step is directed perfectly.

The Evolution of the Deming Cycle or PDSA

The Deming cycle has been evolved from time to time to make it an effective process. I will discuss how the Deming cycle came to be and how it has evolved from time to time.

Dr. W. Edwards Deming

Deming was an American management consultant who graduated as an electrical engineer, later concentrating on mathematical physics. He has become a famous person in the Japanese industry for his work and initiatives after WWII. In addition, Dr. W. Edwards Deming got recognition as one of the most influential Japanese manufacturing industries who are not Japanese but American. He championed the work of Walter Shewhart, including total quality management, statistic process control, and renamed the Shewhart Cycle. After all, He had a great contribution to the rise of the post-war economic growth in Japan.

The Shewhart Cycle

Deming had been inspired by an American engineer Walter Andrew Shewhart who was also a physicist and statistician. In 1939, Shewhart published a book on the Viewpoint of Quality Control. It was the first book that articulated a three-stage systematic process of specification, production, and inspection. These three stages were developed to test the hypothesis of experiments. Finally, he mentioned that these stages should not go straight, but they should go in a cycle. Thus, the Shewhart Cycle came up with the process of a circle.

The Deming Wheel

In 1950, Deming analyzed Shewhart’s Cycle to modify it. He introduced a new version of Shewhart’s Cycle: a four-step of design, production, sales, and research. This cycle has been known as the Deming’s Circle or Deming Wheel.

PDCA

Some Japanese executives probably modify the Deming cycle or Deming wheel into Plan, Do Check, Act (PDCA), although the exact reason for changing the term name is unclear. This four-step cycle was introduced to identify the problems in the industry and solve them by applying four steps together. The prime objective of this cycle is to standardize if the results are satisfying.

Deming Cycle- Four Stages of Deming Cycle & PDSA Cycle Pros and Cons
Deming PDCA Cycle or PDSA Cycle
PDSA
Deming was not satisfied with the name of PDCA; therefore, he amended it in 1986. He emphasized the core meaning of checking, and he mentioned that checking is not incorporate the cycle. Hence, the PDSA emerged with the recommendation of Deming.
When to Apply PDSA

The PDSA or PDCA framework can develop any process or product by splitting it into a shorter steps. This cycle can be used in every kind of organization in many aspects such as changing management, new service or product deployment, product lifecycle, and so on. This framework is beneficial for assisting the improvement of the six sigma and total quality management process. It is the best option to dig out problems and practical solutions.

Deming Cycle or PDSA Quality Improvement

The Deming cycle is one of the essential parts of the quality improvement process in the big industry. Apart from that, organizations apply other quality improvements program that is much complex QI processes.

  • Continuous Quality Improvement: It is also known as the CQI process that organizations apply to reduce waste, increase efficiency, and increase internal and external satisfaction. It is a management philosophy that assesses how the industry works to develop its process. These more complex quality improvement programs include the following:
  • Lean: The lean process is a manufacturing program that effectively improves efficiency and reduces wasteful practices. This program focuses more on improving services and products based on customer’s demands.
  • Six Sigma: The six sigma process is the set of tools and techniques that develop the quality of a process by eliminating defects and minimizing variability in manufacturing.
  • Total Quality Management: It is a process of a management system based on practicing a principle that instills good business culture where every employee maintains a high standard of work. It influences the organization to maintain a high quality of service in every aspect of the company.
  • Quality Improvement Collaboratives: It is a process that usually applies to the healthcare center in which many organizations work together to develop services for patients.
Conclusion

Deming cycle refers to a repeated four-step (PLAN, DO, STUDY, ACT) that ensures the continuous improvement of products and services in the industry. Today, many organizations worldwide use this method to improve the product and service by solving problems.