Total Quality Management
To understand the concept of Total quality management it’s better first to understand the three words constituting the concept, Total Quality, and Management.
- Total: Everyone in the organization is involved in creating and maintaining the quality of the service and products offered by the organization. It is a comprehensive way of dealing with complex sets of interacting issues involves everyone at all levels and addressing all major issues.
- Quality: The organization through individual and collective actions focuses on meeting customer’s needs at the lowest cost, first time and every time, and hence, recognizing that it is the customer’s perception that identifies Total quality, therefore, refers to the fact involved in achieving quality according to some requirements or laid down.
- Management: While managing the system, the emphasis should be towards continuous improvement and not on quick fixes. Then only Total Quality can be achieved. This requires everyone in the organization to be responsible for managing their own job. TQM portrays a whole systems view for quality management. TQM builds on the idea that an organization is an interactive network of communication and Control.
According to Professor Leopold S. Vasin___ “ TQM is the control of all transformation processes of an organization to0 best satisfy customer’s needs in the most economical manner“.
Total quality management is a management system for a customer-focused organization that involves all employees in continual improvement of all aspects of the organization.
TQM = Customer-Driven Quality Management
Total Quality Management concepts were originally developed in Japan. They are widely used in manufacturing and more recently in service firms, including educational institutions. TQM can help the organization to attain service excellence, increase the productivity of service delivery processes, and be a continued source of value creation through the feeding of innovative processes for the firm.
Principles of Total Quality Management
Chopin’s sixteen principles cover several broad features of TQM that are found in most descriptions of the initiative;
- Highest priority is given to quality throughout the organization.
- Quality is defined in terms of customer satisfaction.
- Customers are defined as those who have both internal and external relationships with the organization, including employees, shareholders, and the wider community.
- Customer satisfaction and the building of long-term relationships are at the nub of the organization.
- The organization’s aims will be clearly stated and accessible to all.
- The principles, beliefs, values, and quality are communicated throughout the organization.
- Total Quality Management creates an ethos that pervades all aspects of the organization’s
- The core values of honesty, integrity, trust, and openness are essential ingredients of TQM.
- The Total Quality Management is intended to be mutually beneficial to all concerned and operates in a climate of mutual respect for all stakeholders.
- The health and safety of all organization members and customers are given priority.
- Total Quality Management offers individuals the chance to participate and feel ownership for the success of the enterprise.
- Commitment is generated in individuals and terms through leadership from senior management.
- TQM result in an organization-wide commitment to continuous improvement.
- Performance measurement, assessment, and auditing of the organization’s activities is a common feature of TQM.
- TQM aims to use resources more effectively, and members are encouraged to consider better ways of using resources.
- TQM requires appropriate investment to ensure that planned activity can occur.
Advantages of Total Quality Management
- Better Employee Relations: One of the most important features in implementing a successful TQM system is attaining a highly involved and motivated workforce. Leading companies are using several key indicators to measure the extent o which their focus on quality leads to improvement in employee job satisfaction, attitudes, and behavior. These key indicators include employee satisfaction, employee attendance, employee turnover, safety and health, and a number of suggestions made to improve quality and /or lower costs.
- Improved Operational Performance: Organisation’s operational performance indicators measure the quality and cost of their products and services. Leading companies are using their measures to access the impact of quality management on their operations. These measures include reliability, timeliness of delivery, order processing time, production errors, product lead-time inventory turnover, quality costs, and cost
- Greater Customer Satisfaction: Many leading companies have changed their traditional view that quality involves merely meeting technical They now recognize that the customer defines quality and that companies must focus on meeting customer needs and expectations. Customer satisfaction is defined in terms of new customer referrals, fewer customers complaints, and high customer retention.
- Increased Financial Performance: The impact on a company’s “bottom line” or operating results was measured by several ratios. One important measure used is market share. Companies that build market-share on the basis of improved product/service quality and value believe it is the route to increased profitability. Other measures include productivity and profitability expressed as sales per employee and sales per a comparable retail store; return on the asset, and return on sales.
- Creates a Good Corporate Culture: Total quality management is an approach where the customer is the focal point of the business rather than the Therefore, quality is transformed from an issue of the production department to a strategic business entity to meet global challenges. The TQM philosophy revolves around developing a culture that advocates total commitment to customer satisfaction through continuous improvement.
- Increases Efficiency: The main aim of implementing total quality management in a business is to enhance process efficiency and system and processes. It addresses key areas that need modifications, unnecessary tasks, redundant processes, as well as unproductive activities.
Obstacles in Implementation of Total Quality Management
- Lack of Top Management Commitment and Vision: When the senior officers of the firm/company are not committed TQM cannot be implemented. The strength in the commitment is manifested during periods of trouble.
- Company Culture and Management Styles: When TQM is to be introduced, it needs adjustments in work practices and culture of the organization. Changing the company culture takes a long time. This can be achieved easily by taking the department and people into confidence.
- Lack of Structure for TQM Activities: Quality improvement techniques are not generally taught as part of the curriculum people learn it out of the experience. Lack of an organized training program and not assessing the need for various individuals and departments are the main obstacles to implementing
- Inability to Maintain Momentum: Inability to maintain momentum for the
- Fail to understand Relationship: In a lot of cases, manager fails to understand the angle of relationship with suppliers and customers. Mutual trust and support are the keys to success.