Total quality management (TQM) strategy. The Principles and Practices of Total Quality Management (TQM). The advantages of TQM. Total Quality Management Tools.
Total quality management (TQM) strategy
Yang (2012) proposed that the 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 the customer gratifications. He also said that the employees of the company have to be informed about the strategy before implementing it in the organization. In the mid-1980s, the total quality management (TQM) was introduced based on Company-Wide Quality Control (CWQC) and benchmarking process. Later, many scholars, such as Juran, Deming, and Ishikawa gave their contributions to the practices and improve 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: The Definition of TQM in Total Quality Management.
The example of the company that practices the Total Quality Management (TQM) strategy:
- Ford Motor Company
- Phillips Semiconductor
- SGL Carbon
- Motorola and
- Toyota Motor Company.
The Eight Principles and Practices of Total Quality Management (TQM)
In the mid-1990s, the eight basic principle or elements of the total quality management (TQM) was proposed by some well-known philosophers (Carson, 2019). These eight principles entirely work together to develop the process and to yield satisfaction for the customers.
Figure-2: The Definition of TQM in Total Quality Management.
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 the product can last long to fulfill demands. You can exceed customer satisfaction only when you will know their demands, so align company objectives with the client’s demands (“Total Quality Management Principles to Improve Processes,” 2019, October 2).
Leadership is an important role to maintain unity among employees to achieve the interdependent goal (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 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), there are three types of teamwork such as vertical, horizontal, and inter-organization.
Principle-4: Processes approach
The company needs to improve the process consistently to yield good output. A good output 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 management (TQM) highlights executing the strategy in a systematic approach. The industry makes a proper plan of implementation, and they collect data during 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 important step for every industry to make their customer satisfied. TQM assists the company to keep watching the continual 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 actual fact is an effective way to customer satisfaction. This principal uses the actual method to collect and analyze data.
Principle-8: Mutual beneficial supplier relationship
Usually, a business is conducted by combined multiple departments, and each of the departments is assigned with the individual tasks. 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 employees on how to perform perfectly. The execution of the total quality management (TQM) properly is not an easy task; TQM represents a big cultural shift so the company needs to implement it slowly and accurately (Carson, 2019).
In addition to the eight principles, effective communication is the key principle to conduct business successfully. Everybody of the company has to be conscious about 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. Effective communication reduces silos and increases coordination and cooperation.
The advantages 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:
- Develop the quality of products and services to satisfy customers.
- Motivate employees morally.
- Boost productivity in the organization.
- Reduce production costs and faults.
- Raise profits margin.
- Make processes more efficient and reliable.
- Involves employees.
- Improves the condition of the work environment.
- 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 important approaches are:
- Identify difficulties with quality.
- Analyze data.
- Collect information.
- Identify the main causes of the problems.
- Assess the results.
Carson, S. (2019, September 19). ISO 9001:2015 and the 8 Quality Management Principles to Take You… Pilgrim Quality Solutions Blog | Quality Management Blog. https://www.pilgrimquality.com/blog/iso90012015-quality-mgmt-principles/
Evans, J. R. (2013). Quality & performance excellence. Cengage Learning.
Total Quality Management Principles to Improve Processes. (2019, October 2). Lucidchart. https://www.lucidchart.com/blog/8-total-quality-management-principles/
Yang, C. C. (2012). The integration of TQM and Six-Sigma. Total Quality Management and Six Sigma, 219.