Total Quality Management

Total Quality Management

Total Quality Management is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations.

TQM is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. Some of the companies who have implemented TQM include Ford Motor Company, Motorola and Toyota Motor Company.

TQM Defined

TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives.

TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers. The simple objective of TQM is "Do the right things, right the first time, every time". TQM is infinitely variable and adaptable. Although originally applied to manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service and public sector organizations. There are a number of evolutionary strands, with different sectors creating their own versions from the common ancestor. TQM is the foundation for activities, which include:

* Commitment by senior management and all employees

* Meeting customer requirements

* Reducing development cycle times

* Just In Time/Demand Flow Manufacturing

* Improvement teams

* Reducing product and service costs

* Systems to facilitate improvement

* Line Management ownership

* Employee involvement and empowerment

* Recognition and celebration

* Challenging quantified goals and benchmarking

* Focus on processes / improvement plans

* Specific incorporation in strategic planning

TQM must be practiced in all activities, by all personnel in a company.

The Principles of TQM are as follows:

1. Quality can and must be managed.

2. Everyone has a customer and is a supplier.

3. Processes, not people are the problem.

4. Every employee is responsible for quality.

5. Problems must be prevented, not just fixed.

6. Quality must be measured.

7. Quality improvements must be continuous.

8. The quality standard is defect free.

9. Goals are based on requirements, not negotiated.

10. Life cycle costs, not front end costs.

11. Management must be involved and lead.

12. Plan and organize for quality improvement.

Operation of TQM

Universal Fourteen Points (Deming):

Deming's universal fourteen points for quality management are the foundation of TQM and guide the entire TQM process.

1. Create consistency of purpose with a plan toward quality improvement of service.

2. Adopt the new philosophy of quality.

3. Cease dependence on mass inspections to achieve quality.

4. End the practice of choosing suppliers based solely upon price

5. Identify problems and work continuously to improve the system.

6. Institute training.

7. Teach and institute leadership.

8. Drive fear out of the workplace.

9. Break down barriers between departments.

10. Eliminate exhortations from the workplace.

11. Eliminate work standards and numerical quotas for production.

12. Remove barriers to pride of workmanship.

13. Institute and encourage vigorous programs of education, retraining, and self-improvement.

14. Act to accomplish the transformation

These fourteen points form the foundation of Total Quality Management. They are the cure for the five deadly diseases that can destroy an organization.

Five Deadly Diseases

There are five deadly diseases that must be eliminated from an organization before TQM implementation may be successful. If not eliminated, they may not only prevent the TQM transformation but may gradually destroy the organization.

1. Bottom-line management. An organization that is only concerned with the bottom line and manages solely by-the-numbers is doomed to failure. Management is difficult work; a manager who relies heavily on numerical objectives is taking the easy way out. Managers must know the process, get involved in the process, understand the issues, and set examples for their subordinates to follow.

2. Evaluation using organized by-the-numbers performance appraisals. Evaluation using organized performance appraisals, merit ratings, or annual reviews of performance sometimes result in rankings, forced quotas, and many grading categories that act to create competition, which causes a breakdown of teamwork within an organization. Instead of using performance appraisals, managers should provide individual, personal comments to employees