Total Quality Management (TQM)

The success of the firm is relied on the prospect of it providing quality and standard
goods and services to its customers. Hence for this to be achieved, quality has to be a
matter of concern for every person who has an impact on the organisation. Attempts by
management to sustain quality can be proven futile if all stakeholders are not doing their
part. The aspiration to accomplish quality in all aspects of the business has given rise to
the philosophy of Total Quality Management.
TQM is a management philosophy which ensures that quality is preserved in all areas of
the organisation in order to meet customers’ expectations. All workers, of all levels
accept that the quality of the work they perform is important. Improvements in quality is
a company- wide policy.
Objectives of TQM:
 One of the main objectives of TQM is customer satisfaction as firms aim to satisfy
its customers by building quality into its product and every aspect of the business.
 The improvement of performance in terms of quality, speed or response, cost and
flexibility.
 To foster a customer-focused organisation instead of one concentrated on
functions.
 Enhancement in the business’s versatility and capability to adapt to the evolving
environment.
 To empower workers to perform in teams focused on improving quality as it
builds trust, morale, boosts communication and develops interdependence. TQM
stresses the roles of the individual and aims to ensure everyone accountable for
their own performance.
 To produce a product of zero defects; a policy that aims to manufacture every
product free from faults and inadequacy. A business that achieves this in
customers’ orders is likely to gain a reputable image resulting in new clients and
improved sales.
Total Quality is a description of the culture, attitude and organisation of a company
that aims to provide, and continues to provide, its customers with products and
services that satisfy their needs. To improve total quality we must give mention to
William Edwards Deming, an American management consultant who proposed these
14 principles to effectively increase quality and productivity:
 Creation of a consistency of purpose to improving quality and customer
satisfaction.
 Adopting a philosophy of leadership to promote change.
  Cease dependence on inspection
 Establishing long-term relationships with suppliers.
 Constantly improving quality, production and service with the aim of reducing
costs.
 Implement on-the-job training.
 Changing the focus of the leadership to promote quality
 Driving fear out of employees
 Break down barriers of staff by encouraging teamwork and synergy
 Eliminating criticism of workers and unrealistic targets/ slogans
 Eradicating work standards such as numerical quotas or goals for factory
workers.
 Remove barriers of assessment on output for workers
 Educate workers and encourage self-improvement.
 Encourage everyone in the organisation to work on the transformation process.
Features of TQM:
 Consumer inputs- Information is gathered frequently about customer’s needs and
expectations hence the firm must adjust its products and processes to cater for the
customer’s desires.
 Teamwork/Quality circles- Teamwork is the most effective method used in TQM
to solve problems. It is important to TQM since suggestions for repairing
problems with quality will come from the workers manufacturing the product and
have day to day interactions with.
 Control Strategies- Proper control strategies create an effective TQM system to
monitor quality and the processes that are utilized which can assist the firm to
identify areas that can be improved. Total satisfaction of customers can only occur
if the firm has control over the factors that influence the quality of the product
such as technology, the workforce and materials.
 Company culture and policies- TQM is fully supported by top management and
filtered down throughout the organisation. There must be a culture of
accountability among every individual of the organisation.
 Quality chains- referring to the relationship between suppliers and customers (both
internal and external). It can be broken at any point if a person or piece of
equipment fails to produce goods in line with the requirements of customers. TQM
places great emphasis on this chain as it is the only way quality will be maintained
throughout the organisation.
The Roles of Internal Parties
 Managers- Quality improvement can only occur if there is a strong, active
commitment from top management. Management needs to be willing to listen to
the ideas of employees.
 Workers- Employees must be well trained and coached in order to make quality
improvements in their work processes. There must be continuous learning regime
for all employees.
 Trade Unions- The union system can provide an additional, useful channel of
communication with workers in the sense that worker’s problems can be raised
with management by the union and the plans of the employees can be discussed
via the union before their actions can affect quality and productivity.
The Roles of External Parties
 Suppliers- Relationships with suppliers have to be close since they must always be
prepared to supply high quality components when required. As such the firm often
will have only one or at most two suppliers for each component so that a
relationship of mutual benefits can be built.
 Customers- Firms using TQM must be committed to their customers. They must
be responsive to changes in individual’s needs and predictions. Since the goal of
TQM is ultimately to satisfy customers and building loyalty, it is essential to gain
insight into customer’s desires and satisfaction levels by systematically gathering
customer data.
 Consultants- They can provide important facilities to achieve the desired quality.
These firms may have already identified the best practices and approaches both
within and outside the industry.
Benefits of implementing TQM
 Promotes an improvement in quality and achievement of zero defects.
 Results in the continuous upgrade of the products, processes and competitiveness.
 Development of a team approach to problem solving.
 Helps firms to identify areas of waste and inefficiencies and ways to correct them.
Possible Drawbacks of TQM
 There will be training and development costs of the new system.
 TQM will only work if there is commitment from the entire business
 There will be a great deal of bureaucracy, documents and regular audits needed
which can be an issue for small businesses.
 If not handled properly can lead to labour management problems.