THE MAIN PRINCIPLES OF TOTAL QUALITY MANAGEMENT

Andrei DIAMANDESCU*

Abstract
Nowadays the industry is one of the main economic sectors, with a major contribution to achieving and maintaining a
high rate of economic growth. The processing industry operation to high economic performance requires changes in structural
terms, the re-engineering of processes and management. In this regard, one of the main actions taken at the level of companies
in the manufacturing industry is the implementation of quality systems. Practicing quality management system not only allows
businesses to react to changes taking place in business, but also to inflict them by the controlling of the future. This paper aims
to analyze the principles of Total Quality Management – TQM and will highlight the advantages that organizations could
obtain by applying each principle separately in the process of management.

Keywords: Quality, Total Quality Management, Quality Assurance System, Quality Standards, Competitiveness.

principles of quality management considered being

determinant for continuous performance
1. Introduction improvement. Analyzed and interpreted today
The principles of total quality management (under the impact of the increasing number of
(TQM) can be defined as rules or fundamental and enterprises which have implemented ISO Standards
complete convictions in the management of an and the methods of Kaizen system), the eight quality
organization, oriented towards the continuous principles on which ISO 9001 is based are totally
improvement of performance in the long term, by the harmonized on the European Model of Excellence,
total customer orientation, while taking into Lean, Six Sigma and Business Process Management
consideration the needs of all other stakeholders. (BPM), but they are deficient when it comes to
Both in theory and in practice organizations it quality critical concepts such as social responsibility
is generally accepted that the conceptual basis of the and stakeholder needs, which are limited to
TQM philosophy is the principle of continuous customers.
improvement. To lead the continuous improvement
2.1. Customer Advocacy
process it is necessary to apply a number of
fundamental principles of TQM. There are different This principle is to relief the organization’s
formulations of the basic principles of TQM. For capacity to understand and meet the needs of its
example, R.J. Schonberger makes particular customers. For this, it is necessary, first, to identify
attention to the principles of continuous external customers and internal customers. Then the
improvement and quality assurance processes. G. requirements, the needs and the expectations are
Merli highlights the following basic principles: determined and then they are translated into
customer satisfaction, quality first, continuous specifications, based on which the products are made
improvement, involving all staff. Stora and with certain quality characteristics. The customers’
Montaigne1 believe that the basic principles of TQM needs knowledge through market research is done on
are: management implication, involving all staff and buyers, consumers and even competitors’ customers.
rational improving of quality. According to the Also, if customers of the organization are other
authors Haist and Fromm2, they highlight the organizations, the study should be extended to their
following principles: customer orientation, the ‘zero clients. Based on study results, a list is drawn up with
defects’ principle, continuous improvement, and the needs expressed by customers and the
focus on prevention. importance given to each need.
Then it will be determined the technology and
the processes required for the achievement of
2. The eight principles of TQM appropriate product requirements, and the
investments that are necessary to provide
Considering the different opinions expressed manufacturer technical equipment.
by specialists, as well as the stipulations of SR EN In developing forecasts of customer needs
ISO 9000: 2006 – Chapter 02, we support the organizations must cover both current interests and
assertion that the basis for TQM and the their evolution over time. Also, manufacturers can
development of family ISO 9000 were the eight even determine an orientation of future customer

*
Assist. Prof., PhD, Faculty of Economics, “Nicolae Titulescu” University, Bucharest (e-mail: [email protected]).
1
Stora, G., Montaigne, J. – La Qualité Totale dans l'entreprise, Les Editions d'Organisation, Paris, 2006.
2
Haist, F., Fromm, H. – Qualität im Unternehmen, Prinzipien - Methoden - Techniken, Carl Hanser Verlag, Műnchen-Wien, 2011.
Andrei DIAMANDESCU 673

requirements using intelligent advertising, like other  They were resolved all issues of contract?
channels offered by the media. The collaboration  Is the company able to meet customer
with the customer is recommended (‘partnering’) for requirements?
cases where customers’ real needs are different than  What happens if the customer changes the
those expressed in conducting the study. This can be order?
done either through a dialogue with customers either Finally, the standard tries to clarify if the
in an organized frame or by customer participation company has effective methods of contacting the
in developing processes for a new product required client in order to obtain: product information, call for
by him, or through customer engagement in internal tenders, orders and changes, customer response
activities processes of the company such as planning including complaints.
new product development, technological estimation Most companies have their own method of
etc. Thus may be introduced in product design receiving orders. ISO standards in this area are
features that meet the unexpressed needs. flexible, asking just to formalize and adapt them to
One method to correlate the customer cover all aspects of the standard.
requirements and expectations with the Since this principle is considered crucial to the
manufacturer’s possibilities is Quality Function present and future competitiveness of organizations
Deployment (QFD) developed by Yoji Akao and we have introduced questions in our studies about
Mizuno Shigheru. The method can be applied in the how the organization’s management understands
market research process planning and in the this principle in the current activity. When asked
customer-oriented production. The method is based ‘What consumers / customers want?’ The answer of
on the answers to the following questions: ‘What the most business representatives was limited to
will consumers?’ and how their requirements can be three requirements that they considered most
met? Based on analysis of customer requirements, common in relationships with customers: the best
the characteristics and technical specifications of quality; compliance with the delivery time; lowest
products designed to satisfy these requirements will price.
be set. But for this goal, the organization must Trying to make a summary of the benefits
provide the necessary information to knowledge generated by the application of this principle, they
needs. To this end it is necessary to adapt could be:
management subsystems, especially information  provide reliable information for knowledge
subsystem. This subsystem should be adapted to and understanding of customer needs and
allow the organization to retrieve and process all expectations
customer data. Thus, a customer-oriented  allow the establishment of appropriate
information system should enable the compilation of organizational objectives according to the customer
reviews, the analysis of the customer after their needs and expectations;
effectiveness etc. The system also must exchange  increase market share
information with upstream and downstream partners
 create the best conditions for customer loyalty;
of the organization.
 allow to measure and analyze customer
Regarding the acceptance of orders made by
satisfaction and initiate actions based on results;
the client, ISO Methods referring to the customer
 managing the client relationship, ensuring a
describe how to proceed to set a number of questions
balance between satisfying customers and other
that must be addressed by the manufacturer, for
direct stakeholders (shareholders, employees,
example:
suppliers, society etc.).
 What are the conditions specified by the
customer, including those related to shipping the 2.2. Ensuring leadership (management
product and support requirements? involvement)3
 What are the conditions unspecified by the This principle is to ensure the personal
customer but necessary for intended use (e.g. color)? commitment of the general manager and
 What are the rules on product (e.g. legal or management structure to be involved in the
otherwise)? implementation of the integrated approach to TQM.
Then the standard requires a review covering For this purpose, the organization management will
the following questions: adopt plans for the development of TQM, the
 It was well explained the requirement? management system of the organization, internal
 If the order was made verbally, it was training system, financial resources and personnel
confirmed by the client? etc. Leaders involve employees in the

3
This criterion covers both the capabilities of a leader and the organization management. Leaders have the mission to find solutions to
motivate employees and develop enthusiasm for quality. While managers are currently working, leaders are leading for future. In quality
management, the term refers to how all managers of an enterprise initiates, supports and ensures the promotion of TQM culture. Leadership
for Quality expresses the ability to positively influence people and systems under a single authority to have a significant impact and achieve
important results.
674 Challenges of the Knowledge Society. Economics

implementation of quality management, with a  providing the necessary resources for the
decisive role in the operationalization of all the training and the freedom to act with responsibility
principles underlying quality management. Top and efficiency for the staff;
management of the organization is formulating the  build confidence and eliminate fear, by
vision, mission, strategy, policy and quality encouraging and recognizing personal contributions;
objectives and it is required to observe permanently
the realization of those, in all activities of the 2.3. The involvement of all staff in decision-
organization, and to react in case of nonconformities making
to remove them. This principle consists in developing the
The role of managers in promoting TQM to the capacity to act and to decide individually in solving
structural operating levels must be: problems, and to engage in quality improvement
 Top managers must focus their attention projects. The staff has the main role at all
throughout the organization. Activities in which they organizational levels and only by total and conscious
are directly responsible for quality must be: involvement and aware is possible that everyone’s
establishing the purpose of the implementation of the skills should be involved to achieve quality policy.
quality standard; direct involvement in solving the For this purpose it may act through measures to
problems that are generated by the achievement of ensure full motivation of all staff to permanently
the aim; allocation of resources required for participate to the process of improvement,
implementation and effective operation of the innovation and creativity, thus ensuring the
quality system; rewarding employees for organization’s objectives.
participation in continuous quality improvement; For the implementation of this principle it is
minimize problems of communication between very important to create an internal environment
organizational levels. based on the cult of quality, and for the ‘well done
 Middle level managers (heads of departments) work for the first time and every time’.
must focus their attention at process level to optimize If we refer again to the development projects,
the activities of the departments they lead. Activities to achieve this goal it is necessary that for all project
are evaluated, correlated and made in a unitary team members to be clearly defined the authority and
manner. responsibility to participate in the project. Employee
 Employees must understand and comply with involvement in improvement (quality, cycle-time
quality system at execution level: ‘well done the first and loss), usually by teams, can be achieved through
time and every time’ to remove non-quality and to various forms of training associated with
the compliance with the requirement of ‘zero participation in management decisions and actions
defects’. that give rise to employee empowering. The results
This principle plays a key-role in developing of applying this principle can be measured through
and implementation of projects. Project managers the quality indicators, among which the most
must act as leaders themselves, establishing unity of important are the quality and cost of labor
purpose of the project, project objectives and actions productivity.
of the project team. The project manager is the Among the advantages of applying this
person who has formal authority and responsibility principle we retain:
for project management and thus to ensure that  understanding by employees of the importance
quality management is established, implemented, of their role and contribution in the organization;
maintained and improved. He must assume  employees can evaluate their own performance
leadership, developing a favorable culture for the compared to their personal goals;
project quality.  employees will be permanently preoccupied to
To get the desired results, the project develop the knowledge and experience to enhance
manager's decision related to the implementation their performance;
and efficient operation of the quality management  it creates the framework in which employees
system must be taken in an effort to ensure the openly share their knowledge and experiences in
beneficiaries that there are conditions for it to be solving involving problems.
executed in conformity with the stipulations set by
2.4. Process approach to management
the contract.
 The benefits of applying this principle can be Principle ‘approach as a process’ for quality
summarized as follows: management system is reflected in clauses 4.1 and
 ensure compliance with the needs of all 4.2 of ISO 9001: 2008. This principle is a
stakeholders; fundamental concept underlying the international
 enable the development of the objectives that standard ISO 9000 family, each process having
will ensure increased competitiveness of inputs and outputs and involving people and other
organization and thereby will establish a clear vision resources. More resource-intensive activities that
of the organization’s future; contribute to achieving an output element (a blank,
Andrei DIAMANDESCU 675

subassembly products, part of a service, important prerequisite for the subsequent formulation of the
activities of a project, etc.) can be considered a process improvement solutions.
process. In this interpretation, the process means a Another solution is recommended by a
set of activities that relate and interact to transform document of ISO TC 176 Secretariat / SC 2 which
inputs into outputs. We observe that most times the specifies four categories of management processes:
output elements are elements of a process of entry processes for management of the organization;
into the next process. Applying a system of resource management processes; product
processes within an organization, including development processes; measurement, analysis and
identification and interactions between them and improvement processes.
their management may be considered a ‘process  processes for management of the organization
approach’. This type of approach is aimed at include processes referring to strategic planning,
fulfilling a dynamic cycle of continuous determining quality policy and quality objectives,
improvement and enable significant gains for the ensuring communication between functions and
organization by reducing costs, shortening the processes in the organization, ensure availability of
implementation process by efficient use of resources the resources for quality objectives and the analyzes
and better results based on focusing to consistent and of the quality management system;
predictable opportunities of process improvement.  Resource management processes are those
This approach requires, in particular, processes that provide resources, and they are
identifying processes that an organization should necessary for the organization’s management
implement to keep them under control and processes for realization and measurement of the
continuously improve their efficiency. Such an product.
approach will allow management to focus on those  Processes for implementation (product
processes and not every activity that takes place development processes) are those which result in the
within an organization. It will also facilitate the intended outcome and refer to the product or
focusing on customers and increasing their production process of service. These processes
satisfaction by identifying the key-processes in the include: planning processes of product realization,
organization and their further development towards processes related to customer care, processes of
continuous improvement. design and development of the product or service,
By knowing the main processes of the production process or service provision, the supply
company we can determine precise responsibilities process control measurement devices and
for the management and identify process interfaces monitoring. Product realization processes can be
with the organization functions to be pursued adapted in quality management system
consistently. documentation and implementation to the specific
To identify the processes needed for quality needs of the organization. Document specifying the
management system and their application in quality management system processes, including
organizations we need to know what processes is product realization processes and resources to be
required for the proper functioning of the quality applied to a product, project or contract is called
system and which are inputs and outputs of each ‘Quality Plan’.
process, if there are processes subcontracted and, of  The measurement, analysis and improvement
course, who are customers for these processes and processes are necessary to measure and collect data
what are their requirements. Generally, the to analyze performance and to improve the
processes-chain includes processes of management, effectiveness and efficiency of quality management
execution of works processes, support processes and system. These include processes for measuring,
monitoring and measurement processes. For the monitoring and auditing, performance analysis and
needs of quality management the identified improvement processes (e.g. for corrective and
processes system should include all production preventive actions) and constitute an integral part of
processes, execution and customer service provided management processes, resource management and
by the administration that product or service quality realization processes.
and customer satisfaction. These four categories of quality management
The process identification may be performed processes can be considered as typical processes, but
by more than one solution – for example, the outline it can be identified also specific processes for each
of broad processes or simply by listing the organization.
departments of the organization, e.g. purchasing, To implement the processes, the organization
receiving, production control, sales and marketing, must develop draft-implementing activities that
customer service, production, quality control, compose processes and measurement processes,
expeditions. Then it will be shown the correlation projects that include: communications in the
between the processes, by using a flow chart or organization, awareness, training, re-engineering
diagram representing visually the sequence of management, involvement of top management,
interfaces between them. This activity is a applicable analysis activities. Implementation
676 Challenges of the Knowledge Society. Economics

projects must include measurements, monitoring system processes are managed as a system by
processes and achieving planned inspections creating, understanding and conducting network-
Every part of the processes-system has clients processes and their interactions. Consistent
(internal or external to the organization) and other operation of this network of processes is often called
stakeholders who are influenced by the process and a ‘systemic approach’ management and applies to
determine the desired outputs, according to their the entire quality management system. ‘The process’
needs and expectations. To ensure the operation and is related to the activities carried out and results
monitoring of these processes there are necessary obtained intermediate to produce the desired result
information about the required resources for each for the client. Every process in the system processes
process, about the characteristics outcomes, criteria has clients (internal or external to the organization)
for monitoring, measurement and analysis and also and other stakeholders who are influenced by
determine how these criteria can be included in the process and defining the desired outputs according
quality management system and in the works. to their needs and expectations.
Among the advantages derived from this Applying this principle has as results:
principle, we mention:  better achieve of the objectives pursued by
 defining systematic activities necessary to integration and alignment of processes
obtain the desired result and formalization of their  it provides confidence to the stakeholders on
main processes. the existence, effectiveness and consistency of the
 setting clear and quantifiable responsibilities organization;
for the process management and identifying process  understanding the interdependencies between
interfaces with functions of the organization that will processes within the organization;
be tracked constantly;  a structured approach to harmonization and
 analyze and measurement of key processes integration of processes;
capability;  achieving a better understanding of roles and
 identifying interfaces between key-activities responsibilities;
and the other organization’s functions;  understanding the organization’s capabilities
 focusing on factors that can lead to improving and prioritization of actions according to material
the organization’s activities (resources, methods and constraints;
materials);  defining how specific activities will take place
 risk assessment, consequences and processes within the system;
impact on all stakeholders;  pursuing permanently the system improvement
by measurement and evaluation;
2.5. System approach to management
The principle of the system approach for 2.6. Continuous improvement in performance
quality management system is reflected in clauses This principle consists in involving all staff at
4.1 and 4.2 of ISO 9001: 2008. The principle all levels and in all entities in activities to improve
requires global approach to quality management, the organization’s distinctive capabilities.
including all structures of the company and all Responding to the requirements of this
employees. A perfect work performed by a principle it was invented in Japan and applied by
department of the company, but neglected to Masaaki Imai (2006) a new strategy of continuous
another, loses all value. In fact, all departments of a improvement, named in Japanese ‘Kaizen’ which
company are, in one way or another, customers or involves continuous improvement and involving
suppliers to one another, as are the customers and everyone from managers to workers. In his turn,
external suppliers to the company. The qualitative W.E. Deming has developed a continuous
approach will not bring positive results than improvement process called ‘P-D-C-A Cycle‘,
respecting the condition that the entire company to introduced in Japan in 1950 and called ‘the Deming
align this approach that quality management is an Cycle’.
organic component of the overall management of the The four phases of this cycle are:
company. Quality management system is part of the  Plan (P) – Planning activities for the
overall management of the organization, along with improvement plan. At this stage the goals and
other parties such as human resources management necessary processes are determined to obtain results
subsystems, suppliers, health and safety etc. Even if in accordance with customer requirements and the
these subsystems are not enough visible, they are organization’s policies.
found in every organization.  Do (D) – Implementation of the improvement
The principle involves understanding and plan. This stage consists in implementing in fact the
conducting the quality management system in the processes.
company, given that its activities are embodied in  Check (C) – Checking the performed work.
interrelated processes, so as to ensure efficiency This stage consists in monitoring and measuring
improvement organization. Quality management processes and products against policies, objectives
Andrei DIAMANDESCU 677

and requirements for products, and reporting results.  requires staff training methods and tools for
It is check therefore whether or not the continuous improvement;
implementation is on schedule and where the  continuous improvement of products and
activities are, comparing to the planned activities. processes is a goal of every person in the organization;
 Act (A) – Action to correct the process. The  establishment of measures for continuous
stage includes actions to continuously improve improvement and its tracking;
process performance based on the findings of the  recognition and distribution of the
previous stage. It aims at conducting and achieving improvements.
standardization of the new procedures to prevent
recurrence of nonconforming problems or to set 2.7. Management by facts
goals for further improvements. PDCA cycle This expression signifies that each person
continuously spins given that once an improvement involved in the organization must ensure that any
is made the resulting state becomes another target for decision is based on facts. Management decisions
improvement. and actions on quality management system is based
Current standards will be improved by on the analysis of ‘facts’ that represent data and
KAIZEN activities, which will make it possible by information on the performance levels of current
passing from maintenance stage to improve stage. products or services provided by the organization
Corresponding to this principle, the and which are obtained from information contained
organization’s overall performance should be a in the audit reports, corrective actions, non-
permanent objective of management. The phrase conforming products, customer complaints, etc.
‘continuous quality improvement’ can be used only Analysis of relevant data based on information
when, as specified in ISO 9000: 2005, quality reduces the risk decisions based on personal
improvement is permanent, temporary actions to ‘opinions’. All documents, information, procedures
improve quality do not meet this principle. constitute a proper quality management information
Although most experts consider to be the most system that intertwines, in some areas, with general
important principle of TQM, understanding its information system existing in the organization.
importance and how it applies is very different in the Those managers must be reserved in making
world. The greatest interest is granted by the quality decisions for which there are no verified information
management system practiced in Japan. We retain in in practice
this regard, Kaizen system practiced in this country, The benefits of the principle can be:
which is a concretization of the principle.  decisions are pertinent and reliable because
In our assessment, the inclusion of this they are based on accurate and verified data and
principle in the 2000 edition of the standard 9001 by information;
dropping the phrase ‘quality assurance’ and  data and information analyzing is made using
replacing it with the phrase ‘continuous quality established methods;
improvement’, targeting the excellence, was correct.  making decisions and setting up actions based
It can be considered that the implementation and on an analysis of the facts, balanced with experience
efficient operation of the quality management and intuition;
system presumes that was effectively ensured  providing access to data to those who need them.
quality in all activities of the organization. Therefore
the concern of management and employees must 2.8. Mutually advantageous relations with
focus on continuous quality improvement, i.e. suppliers
towards excellence, as required by the guidelines The latter implies definition and proper
provided by ISO 9004: 2011, which was designed to documentation requirements that must be met by
pair with ISO 9001. The observation is consistent suppliers. It is necessary to analyze and assess their
with requirements for continuous quality performance to control the supply of quality
improvement, which is manifested in the European products or services.
Union. Currently, the requirements for product At the same time the manufacturer must also
quality and service have increase beyond the level take account of the interests of the supplier, so both
implied by the phrase ‘quality assurance’, and have benefited from business conducted jointly.
believe that customer satisfaction is no longer Relations beneficial win-win between the
sufficient to overcome expectations by promoting organization and suppliers increases the capacity of
the concept of ‘Beyond Customer Satisfaction’ both entities to create added value. This principle
according provided that the product must exceed includes relationships with domestic suppliers.
customer requirements, to enthuse him. Mutually beneficial relations between all processes
 Among the advantages of organizations undertaken within the organization and between
applying this principle, we remember: them and external partners contribute to an osmosis
 continuous performance improvement becomes between internal activities, on the one hand, and
a permanent approach across the organization between the organization and working environment
678 Challenges of the Knowledge Society. Economics

on the other. So the management of relations with reduce inventory, related costs, increase quality,
suppliers focuses on providing quality and productivity and adaptability to changes.
performance of services, involvement and During the process of choosing suppliers to
integration provider (supplier partnership) and the establish relations of partnership, companies pursue
capability of providing improvements in its work. objectives such as:
In practice, we noticed that there are few  the possibility of establishing relationships that
companies that were aligned to the requirements of balance short-term gains with long-term;
stakeholders in the supply chain, manufacturing  mutual consent providers and beneficiaries on
processes and solutions capabilities to achieve this resource gains;
"best practice" deeply rooted in quality standards.  identification and selection of major suppliers
Therefore, we consider it necessary to reconsider the able to make improvements in their own activity;
customer-supplier relationship, often adverse  setting common activities to improve quality.
positions they were in traditional models of
management in achieving the idea of partnerships
throughout the supply chain. 3. Conclusions
As said Professor Daniel T. Jones, co-author of
the paper ‘The Machine That Changed the World’, Analyzing the above principles, we believe
‘No organization is like an island. Your customers that the basic principles of TQM must be included in
depend on the excellence of your supplies ... The best the organization’s culture to generate a climate of
companies create alliances with suppliers to ensure open cooperation and teamwork between members,
their customer retention’4. customers and suppliers. Managers must understand
In fact the application of quality management that by implementing total quality management
in terms of efficiency is impossible without the principles can improve considerably the
existence of these alliance relationships with competitiveness of organizations. We consider that
suppliers. One example is enough to confirm this the implementation of generalized systems of quality
assertion: the method Just In Time, which aims "zero management, organizations can record a short-term
inventories and total quality" means that the product benefits such as winning new business, increasing
must reach exactly when the client needs it. customer demand and protect business reduce costs
However, a prerequisite in this regard is thus by continuously improving efficiency and reducing
synchronizing the production may be achieved only losses and increasing labor productivity.

References:
 Haist, F., Fromm, H. (2011) – Qualität im Unternehmen, Prinzipien - Methoden - Techniken, Carl Hanser
Verlag, Műnchen-Wien;
 Imai, Masaaki (2006) – KAIZEN: The Key to Japan's Competitive Success New York Random House;
 Imai, Masaaki (2013) – Gemba Kaizen, Edited by Kaizen Institute Romania, Bucarest;
 Daniel T Jones, James P Womack, Daniel Ross (2007) The Machine that Changed the World Publisher
Harper Collins;
 Juran, J.M. (1991) – Quality Control Handbook Mc Graw-Hill New York;
 Stora, G., Montaigne, J. (2006) – La Qualité Totale dans l'entreprise, Les Editions d'Organisation, Paris;
 ISO Standards editions 2001-2011.

4
Daniel T Jones, James P Womack, Daniel Ross (2007) The Machine that Changed the World Publisher Harper Collins.