TQM AND ITS PRINCIPLES.

A core definition of total quality management (TQM) describes a management approach to

long-term success through customer satisfaction. In a TQM effort, all members of an
organization participate in improving processes, products, services, and the culture in which
they work.

PRIMARY ELEMENTS OF TQM

TQM can be summarized as a management system for a customer-focused organization that

involves all employees in continual improvement. It uses strategy, data, and effective
communications to integrate the quality discipline into the culture and activities of the
organization. Many of these concepts are present in modern quality management systems, the
successor to TQM. Here are the 8 principles of total quality management:

1. Customer-focused: The customer ultimately determines the level of quality. No

matter what an organization does to foster quality improvement—training employees,
integrating quality into the design process, or upgrading computers or software—the
customer determines whether the efforts were worthwhile.
2. Total employee involvement: All employees participate in working toward common
goals. Total employee commitment can only be obtained after fear has been driven from
the workplace, when empowerment has occurred, and when management has provided the
proper environment. High-performance work systems integrate continuous
improvement efforts with normal business operations. Self-managed work teams are one
form of empowerment.
3. Process-centered: A fundamental part of TQM is a focus on process thinking. A
process is a series of steps that take inputs from suppliers (internal or external) and
transforms them into outputs that are delivered to customers (internal or external). The
steps required to carry out the process are defined, and performance measures are
continuously monitored in order to detect unexpected variation.
4. Integrated system: Although an organization may consist of many different
functional specialties often organized into vertically structured departments, it is the
horizontal processes interconnecting these functions that are the focus of TQM.
 Micro-processes add up to larger processes, and all processes
aggregate into the business processes required for defining and implementing strategy.
Everyone must understand the vision, mission, and guiding principles as well as the
quality policies, objectives, and critical processes of the organization. Business
performance must be monitored and communicated continuously.
 An integrated business system may be modeled after the Baldridge
Award criteria and/or incorporate the ISO 9000 standards. Every organization has a unique
work culture, and it is virtually impossible to achieve excellence in its products and
services unless a good quality culture has been fostered. Thus, an integrated system
connects business improvement elements in an attempt to continually improve and exceed
the expectations of customers, employees, and other stakeholders.
5. Strategic and systematic approach: A critical part of the management of quality is
the strategic and systematic approach to achieving an organization’s vision, mission, and
goals. This process, called strategic planning or strategic management, includes the
formulation of a strategic plan that integrates quality as a core component.
6. Continual improvement: A large aspect of TQM is continual process improvement.
Continual improvement drives an organization to be both analytical and creative in finding
ways to become more competitive and more effective at meeting stakeholder expectations.
7. Fact-based decision making: In order to know how well an organization is
performing, data on performance measures are necessary. TQM requires that an
organization continually collect and analyze data in order to improve decision making
accuracy, achieve consensus, and allow prediction based on past history.
8. Communications: During times of organizational change, as well as part of day-to-
day operation, effective communications plays a large part in maintaining morale and in
motivating employees at all levels. Communications involve strategies, method, and
timeliness

These elements are considered so essential to TQM that many organizations define them, in
some format, as a set of core values and principles on which the organization is to operate.
The methods for implementing this approach come from the teachings of such quality leaders
as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa,
and Joseph M. Juran. 

BENEFITS OF TOTAL QUALITY MANAGEMENT

Total quality management benefits and advantages are as follows:

 Strengthened competitive position

 Adaptability to changing or emerging market conditions and to environmental and
other government regulations
 Higher productivity
 Enhanced market image
 Elimination of defects and waste
 Reduced costs and better cost management
 Higher profitability
 Improved customer focus and satisfaction
 Increased customer loyalty and retention
 Increased job security
 Improved employee morale
 Enhanced shareholder and stakeholder value
 Improved and innovative processes

GENERIC STRATEGY MODEL FOR IMPLEMENTING TQM

SYSTEMS

1. Top management learns about and decides to commit to TQM. TQM is identified as
one of the organization’s strategies.
2. The organization assesses current culture, customer satisfaction, and quality
management systems.
3. Top management identifies core values and principles to be used, and communicates
them.
4. A TQM master plan is developed on the basis of steps 1, 2, and 3.
 5. The organization identifies and prioritizes customer demands and aligns products and
services to meet those demands.
6. Management maps the critical processes through which the organization meets its
customers’ needs.
7. Management oversees the formation of teams for process improvement efforts.
8. The momentum of the TQM effort is managed by the steering committee.
9. Managers contribute individually to the effort through hoshin planning, training,
coaching, or other methods.
10. Daily process management and standardization take place.
11. Progress is evaluated and the plan is revised as needed.
12. Constant employee awareness and feedback on status are provided and a
reward/recognition process is established.

EXAMPLES OF TOTAL QUALITY MANAGEMENT SYSTEM

STRATEGIES

Imprints of TQM concepts can be found in modern approaches to quality management, such as
the Malcolm Baldridge National Quality Award (MBNQA) criteria, ISO 9001, Six
Sigma and lean manufacturing, as well as the examples below.

HISTORY OF TOTAL QUALITY MANAGEMENT

The history of total quality management (TQM) began initially as a term coined by the Naval
Air Systems Command to describe its Japanese-style management approach to quality
improvement.
1920s  Some of the first seeds of quality management were planted as the principles of scientific management swept through U.S. indu
 Businesses clearly separated the processes of planning and carrying out the plan, and union opposition arose as workers were
 deprived of a voice in the conditions and functions of their work.
 The Hawthorne experiments in the late 1920s showed how worker productivity could be impacted by participation.

1930s  Walter Shewhart developed the methods for statistical analysis and control of quality.

1950s  W. Edwards Deming taught methods for statistical analysis and control of quality to Japanese engineers and executives.
 This can be considered the origin of TQM.
 Joseph M. Juran taught the concepts of controlling quality and managerial breakthrough.
 Armand V. Feigenbaum’s book Total Quality Control, a forerunner for the present understanding of TQM, was published.
 Philip B. Crosby’s promotion of zero defects paved the way for quality improvement in many companies.

1968  The Japanese named their approach to total quality "companywide quality control." It is around this time that the term
  quality management systems arises.
 Kaoru Ishikawa’s synthesis of the philosophy contributed to Japan’s ascendancy as a quality leader.

Today  TQM is the name for the philosophy of a broad and systemic approach to managing organizational quality.
 Quality standards such as the ISO 9000 series and quality award programs such as the Deming Prize and the
  Malcolm Baldrige National Quality Award specify principles and processes that comprise TQM.
 TQM as a term to describe an organization's quality policy and procedure has fallen out of favor as international standards for q
 management have been developed.

BARRIERS TO TQM IMPLEMENTATION

1. Lack of management commitment

In order for any organizational effort to succeed, there must be a substantial management
commitment of management time and organizational resources. The purpose must be clearly
and continuously communicated to all personnel management must consistently apply the
principle of TQM.

2. Inability to change organizational culture

Changing an organization's culture is difficult and will require as much as five years.
Individuals resist change--they become habituated to doing a particular process and it
becomes the preferred way. Management must understand and utilize the basic concepts of
change. They are;

1. People change when they want to and to meet their own needs
2. Never expect anyone to engage in behaviour that serves the organization's values
unless adequate reason (why) has been given.
3. For change to be accepted, people must be moved from a state of fear to trust.
It is difficult for individuals to change their way of doing things; it is much more difficult for
an organization to make cultural change. Organization that spend more planning for the
cultural aspects of implementing a TQM program will improve their chance of success.

3. Improper planning

All constituents of the organization must be involved in the development of the

implementation plan and any modifications that occur as the plan evolves. The Two-way
communication of ideas is the matter of great importance and should be taken by all
personnel during the development of the plan and its implementation. Customer satisfaction
should be the goal rather than financial or sales goals.

4. Lack of continuous training and education

Training and education is an ongoing process for everyone in the organization. Needs must
be determined and a plan developed to achieve those needs. Training and education are most
effective, when senior management conducts the training on the principles of TQM. External
trainer can be hired for communicating the TQM effort to all personnel on a continual basis.
Lack of training in group discussion and communication techniques, quality improvement
skills, problem identification, and the problem-solving method was the second most
important obstacle.

5. Incompatible organizational structure and isolated individuals and departments

Difference between departments and individuals can create implementation problems. The
use of multifunctional teams will help to break down long-standing barriers. Restructuring to
make the organization more response to customer needs may be needed. Individuals who do
not embrace the new philosophy can be required to leave the organization.

6. Ineffective measurement techniques and lack of access to data and results

Key characteristics of the organization should be measured for effective decision making. To
improve a process are you need to measure the effect of improvement ideas. Access to data
and quick retrieval is necessary for effective processes. Find the root cause, correct the
problem and eliminate the root cause to prevent recurrence of the problem.

7. Paying inadequate attention to internal and external customers

Organizations need to understand the changing needs and expectations of their customers.
Effective feedback mechanism that provide data for decision making are necessary for this
understanding. Give the right people (who are directly working on the product) direct access
to the customers. When an organization fails to empower individuals and teams, it can't hold
them responsible for producing results.

8. Inadequate use of empowerment and team work

Teams need to have the proper training and at least in the beginning by a facilitator.
Individuals should be empowered to make decisions that affect the efficiency of their process
or the satisfaction of their customer.
9. Failure to continuously improve

It is tempting to sit back and rest on your laurels. However, a lack of continuous
improvement of the process, product and service will even leave the leader of the pack in the
dust.