Concept of Total Quality Management

The Concept of Total Quality Management (TQM)

Total quality management is a comprehensive concept and not related only to the quality of goods and services. It suggests that high quality standards (e.g., ISO 9000) should be maintained in other aspects of management such as production cost, marketing, sales promotion, etc. For such quality/efficiency in all aspects of business management, consciousness/awareness needs to be developed at all levels and among employees working in all departments of the enterprise. Employees must be motivated for maintaining high quality standards. In addition, their cooperation/involvement is necessary for maintaining efficiency in all aspects of business management. In brief, quality management is not the responsibility of management alone. Participation/involvement of both parties (management and employees) is essential for achievement of quality and other benefits.

The concept of TQM is closely related to the concept of quality circles which is very popular and also successful in Japan. Quality circles are work groups that meet frequently to study the ways and means to improve quality, reduce cost, eliminate wastages and solve other production problems. Here, employees are associated with quality, cost, efficiency, productivity, consumer service and satisfaction. This creates background for the concept of TQM.

TQM aims at improving the total performance at the work place. It covers all functions, activities and people who are responsible for competitiveness of an Organisation. The employees are expected to participate not only in maintaining quality but also in improving their total performance so that the wastages will be avoided, production cost will go down and the enterprise can earn more profit.

TQM means strategic commitment to improving quality by combining statistical quality control methods with a cultural commitment to seeking incremental improvements that increase productivity and lower costs.

Total quality management reflects the culture of an Organisation. It indicates consumer oriented, quality-oriented management philosophy. It is a commitment to quality by all managers and workers. TQM is a philosophy for achieving customer satisfaction which involves all - managers, employees and users. It is management by commitment and not management by control. This technique is to be introduced through quality circles. The route to TQM is through application of simple tools followed by Organisation change and culture change.
Total quality management is based on the following four powerful elements:

1. Focus on customer expectations,
2. Employees' involvement,
3. Mastery of processes,
4. Team work.

Definition of TQM

According to John Gilbert,

Total Quality Management is "A process designed to focus on customer expectations, preventing problems, building commitment to quality in the workforce and promoting open decision-making."

Origin of TQM

1. Stress on quality management : In TQM, collective efforts are being made for improving quality of goods and services so as to give more satisfaction to consumers. Quality improvement is also useful for facing market competition and for creating market reputation. In brief, TQM involves steps for improving quality and productivity. There is total commitment to quality on the part of entire Organisation. TQM covers all functions, activities and people who are instrumental for raising the competitiveness.
2. Continuous process : TQM is a continuous process/activity as there is ample scope for using new methods and techniques for improvement in the quality standards and performance. "Steal ideas constantly and shamelessly" is the rule in TQM. Implementation of innovative ideas or taking benefit of new opportunities is an integral aspect of TQM. In fact, TQM is a never ending quest for achieving new levels of performance.
3. Stress on quality assurance system : The aim of TQM is to give maximum satisfaction to consumers by providing goods which are best in quality (zero defects). The present ISO9000 series is a set of well recognised standards for quality assurance system. The Japanese have been using quality assurance concepts and principles as a part of their TQM implementation programme even when specific name or number was not used. Thus, quality assurance system is an integral part of TQM.
4. Linkage of quality and productivity : The TQM technique is useful for improving quality as well as productivity. In a TQM programme, the focus is on quality improvement. However, such programme also raises productivity. The methods used in TQM programmes. E.g. stress on quality improvement, zero defects production, making all employees responsible for quality maintenance and improvement) are likely to bring quality improvement as well as yield improvement. Similarly, the TQM programme creates a feeling of participation among the employees. There is also positive improvement in the morale of employees.
5. TQM is a gradual process : Introduction of TQM is a gradual process. It is self improvement and group improvement programme through team building for raising quality and productivity. TQM is about the gradual change of people's behavior towards the tasks they perform and their attitude towards other people. A mental revolution among the employees is required for the execution of TQM. However, such change in the mental make-up of managers and employees requires long period. This suggests that TQM is a gradual process. There are, in fact, four broad phases in the introduction of TQM.
   
   These are:
   
   
   1. Awareness Phase,
   2. Planning Phase,
   3. Implementation Phase, and
   4. Institutional Phase.
      
6. Focus on customers : Customers are the source of all the revenue that flows through the corporation. Their satisfaction keeps the money flowing especially in an open market where competitors are wooing them too. The focus of TQM is on customer satisfaction on quality, cost and delivery through improved orgarnisational quality of processes. According to British Quality Association (BQA), TQM is a corporate business management philosophy which recognised that customers' needs and business goals are inseparable.
7. Employee involvement : Employees involvement is the most important recognised feature of TQM. In fact, quality's a team work of all employees. Their participation and co-operation are required to be taken at all levels. TQM is possible only through participative management. Under TQM, employees will be motivated to participate actively in the process of quality improvement through incentives and recognition of contribution for achieving quality standards.
8. Formation of quality improvement teams : A cornerstone of TQM is the team building that leads to commitment to improvement. Such teams include quality steering teams, corrective actions teams and so on. Such teams motivate employees and facilitate quality improvement.
9. Management's involvement : TQM is a systems approach in managing business and improving overall performance. It needs total commitment from the top management to provide viable leadership to the whole approach. Top level management has to take number of initiatives in order to start the process of TQM. In fact, TQM cannot have a good take off without total commitment of CEO and other senior executives.

Advantages of TQM

1. Customer satisfaction : TQM is basically for the satisfaction and welfare of customers. Needs and expectations of customers are given special attention in TQM. The attention is on customers and zero defect goods will be supplied to them. As a result, there will be reduction in the complaints of consumers/customers. TQM is not for profit-making at the cost of customers but it is for giving satisfaction and welfare to them.
2. Quality improvement : One major advantage of a TQM is quality improvement at all levels and in all activities. There is a systematic attempt to eliminate deficiencies such as production scrap or rework, customer complaints and material shortages. The cornerstone of any successful TQM system is the organised elimination of waste. The rejection rate in the production process will be low and this minimizes waste of materials and human efforts. Due to quality improvement, the sales and profits will also increase. The company will also develop goodwill and market recognition as supplier of quality goods.
3. Absence of additional investment : One advantage of TQM is that TQM does not require any additional investment. It improves operational quality as well as reduces cost. This technique is quite convenient to developing countries which are facing financial difficulties due to various reasons. TQM gives many benefits but without additional financial burden.
4. Raises competitiveness : TQM technique is useful for raising quality and reducing costs. This naturally raises competitiveness in the domestic as well as global markets. TQM technique is useful for exports by raising global competitiveness.
5. Facilitates expansion and diversification : TQM leads to large turnover and high profits along with market reputation and consumer support. The company can use this profit for the execution of its expansion and diversification programmes. In brief, TQM facilitates expansion and diversification of business.
6. Provides trained and motivated employees : TQM philosophy has its positive impact on employees. They are given proper training, monetary and non-monetary incentives, attractive working conditions and proper treatment. Workers take pride in manufacturing defect-free products.
7. Miscellaneous Advantages : TQM technique offers other advantages as noted below:- 
   
   
   1. Long-term consumer support,
   2. Prestigious position in international marketing,
   3. High standard of living to employees, and
   4. Cost control.