Total Quality Management

IVY MAR J. RAMOS, PIE, ASEAN ENG.

LEARNING
OBJECTIVES
When the students completed this
lesson, they should be able to:
• Explain the evolution of total
quality management (TQM).
• Understand the key principles and
key elements of TQM.
• Identify common barriers to the
implementation of TQM and
benefits.
 TQM describes a management approach to long-term success
through customer satisfaction. In a TQM effort, all members of an
organization participate in improving processes, products, services,
and the culture in which they work

WHAT IS TOTAL Total quality management (TQM) is the continual process of

QUALITY detecting and reducing or eliminating errors in manufacturing. It
streamlines supply chain management, improves the customer
MANAGEMENT experience, and ensures that employees are up to speed with
training. Total quality management aims to hold all parties involved
(TQM)? in the production process accountable for the overall quality of the
final product or service.

Total quality management is a structured approach to overall

organizational management. The focus of the process is to improve
the quality of an organization's outputs, including goods and
services, through the continual improvement of internal practices.
 Customer
Focus

Communications
Employee
Empowerment

The 8 Fact- 8
Elements of Based
Elements Process-
Decision centered
TQM Making of TQM

Continual Integrated
Improvement System
Strategic
and
Systematic
Approach
 • Customer-focused: The customer ultimately
determines the level of quality. No matter what an
organization does to foster quality improvement—
training employees, integrating quality into the
design process, or upgrading computers or

The 8 software—the customer determines whether the

efforts were worthwhile.
• Employee
Elements Empowerment: All employees
participate in working toward common goals. Total
employee commitment can only be obtained after
of TQM fear has been driven from the workplace,
when empowerment has occurred, and when
management has provided the proper
environment. High-performance work systems
integrate continuous improvement efforts with
normal business operations. Self-managed
work teams are one form of empowerment
The 8 Elements of TQM
• Process-centered: A fundamental part of TQM
is a focus on process thinking. A process is a
series of steps that take inputs from suppliers
(internal or external) and transforms them into
outputs that are delivered to customers (internal
or external). The steps required to carry out the
process are defined, and performance measures
are continuously monitored to detect unexpected
variation.
• Integrated system: Although an organization
may consist of many different functional
specialties often organized into vertically
structured departments, it is the horizontal
processes interconnecting these functions that
are the focus of TQM
The 8 Elements of TQM
• Strategic and systematic approach: A
critical part of the management of quality
is the strategic and systematic approach
to achieving an organization’s vision,
mission, and goals. This process, called
strategic planning or strategic
management, includes the formulation of
a strategic plan that integrates quality as a
core component.
• Continual improvement: A large aspect
of TQM is continual process improvement.
Continual improvement drives an
organization to be both analytical and
creative in finding ways to become more
competitive and more effective at
meeting stakeholder expectations.
The 8 Elements of TQM
• Fact-based decision making: To know
how well an organization is performing,
data on performance measures are
necessary. TQM requires that an
organization continually collect and
analyze data to improve decision making
accuracy, achieve consensus, and allow
prediction based on history.
• Communications: During times of
organizational change, as well as part of
day-to-day operation, effective
communications plays a large part in
maintaining morale and in motivating
employees at all levels. Communications
involve strategies, method, and
timeliness.
 Strengthened competitive position

Adaptability to changing or emerging market

conditions and to environmental and other
government regulations

Benefits Higher productivity

of TQM Enhanced market image

Elimination of defects and waste

Reduced costs and better cost management

 Higher profitability

Improved customer focus and

satisfaction
Increased customer loyalty and retention
Benefits Increased job security
of TQM Improved employee morale

Enhanced shareholder and stakeholder

value
Improved and innovative processes
 Implementing TQM
GENERIC STRATEGY MODEL FOR IMPLEMENTING TQM SYSTEMS
1. Top management learns about and decides to commit to TQM. TQM is
identified as one of the organization’s strategies.
2. The organization assesses current culture, customer satisfaction, and
quality management systems.
3. Top management identifies core values and principles to be used and
communicates them.
4. A TQM master plan is developed based on steps 1, 2, and 3.
5. The organization identifies and prioritizes customer demands and aligns
products and services to meet those demands.
6. Management maps the critical processes through which the organization
meets its customers’ needs.
 Implementing TQM
GENERIC STRATEGY MODEL FOR IMPLEMENTING TQM SYSTEMS
7. Management oversees the formation of teams for process
improvement efforts.
8. The momentum of the TQM effort is managed by the steering
committee.
9. Managers contribute individually to the effort through hoshin
planning, training, coaching, or other methods.
10.Daily process management and standardization take place.
11.Progress is evaluated and the plan is revised as needed.
12.Constant employee awareness and feedback on status are
provided and a reward/recognition process is established.
Implementing TQM
EXAMPLES OF TOTAL QUALITY MANAGEMENT SYSTEM STRATEGIES

Strategy 1: The The TQM element approach takes key business processes and/or organizational units
and uses the tools of TQM to foster improvements. This method was widely used in the
TQM element early 1980s as companies tried to implement parts of TQM as they learned them.
approach Examples of this approach include quality circles, statistical process control, Taguchi
methods, and quality function deployment.

Strategy 2: The The guru approach uses the teachings and writings of one or more of the leading quality
thinkers as a guide against which to determine where the organization has deficiencies.
guru approach The organization makes appropriate changes to remedy those deficiencies. For example,
managers might study Deming’s 14 points or attend the Crosby College. Afterward, they
would work on implementing the approach learned.

Strategy 3: The In this approach, individuals or teams visit organizations that have taken a leadership role
in TQM and determine their processes and reasons for success. They then integrate
organization these ideas with their own ideas to develop an organizational model adapted for their
model approach specific organization. This method was used widely in the late 1980s and is exemplified by
the initial recipients of the Malcolm Baldrige National Quality Award.
Implementing TQM
EXAMPLES OF TOTAL QUALITY MANAGEMENT SYSTEM STRATEGIES

Strategy 4: Organizations using the Japanese total quality approach examine the detailed
implementation techniques and strategies employed by Deming Prize-winning
The Japanese companies and use this experience to develop a long-range master plan for in-
total quality house use. This approach was used by Florida Power and Light—among
others—to implement TQM and to compete for, and win, the Deming Prize.
approach

When using this model, an organization uses the criteria of a quality award (e.g., the
Strategy 5: Deming Prize, the European Quality Award, or the Malcolm Baldrige National Quality
The award Award), to identify areas for improvement. Under this approach, TQM implementation
focuses on meeting specific award criteria.
criteria
Although some argue that this is not an appropriate use of award criteria, some
approach organizations do use this approach and it can result in improvement.
 History and Evolution of TQM
Scientific Quality
Management ASQ (then ASQC Management
Principles formed) Systems

1920s 1946 1968

1930s 1950s Today

Shewhart TQM and Quality Quality Standards

develops SQC Concepts and SMS
methods developed
History and Evolution of TQM
• Some of the first seeds of quality management
were planted as the principles of scientific
management swept through U.S. industry.
• Businesses clearly separated the processes of
1920s planning and carrying out the plan, and union
opposition arose as workers were deprived of a
voice in the conditions and functions of their
work.
• The Hawthorne experiments in the late 1920s
showed how worker productivity could be
impacted by participation.
History and Evolution of TQM
• Walter Shewhart developed the methods for statistical analysis
1930s and control of quality.

• W. Edwards Deming taught methods for statistical analysis and

control of quality to Japanese engineers and executives. This
can be considered the origin of TQM.
• Joseph M. Juran taught the concepts of controlling quality and
managerial breakthrough.
1950s • Armand V. Feigenbaum’s book Total Quality Control, a
forerunner for the present understanding of TQM, was
published.
• Philip B. Crosby’s promotion of zero defects paved the way for
quality improvement in many companies.
History and Evolution of TQM
• The Japanese named their approach to total quality "companywide quality
control." It is around this time that the term quality management systems arises.
• Kaoru Ishikawa’s synthesis of the philosophy contributed to Japan’s ascendancy
1968 as a quality leader

• TQM is the name for the philosophy of a broad and systemic approach to
managing organizational quality.
• Quality standards such as the ISO 9000 series and quality award programs such
as the Deming Prize and the Malcolm Baldrige National Quality Award specify
principles and processes that comprise TQM.
Today • TQM as a term to describe an organization's quality policy and procedure has
fallen out of favor as international standards for quality management have been
developed. Please see our series of pages on quality management systems for
more information.
W. EDWARDS DEMING’S 14 POINTS FOR
TOTAL QUALITY MANAGEMENT
Summary
• TQM is an integrated effort designed to improve the
quality of performance at every level of the
organization. Product, process, system, people, and
leadership are the five pillars of TQM. TQM is a
comprehensive management system.
• The eight key elements of TQM are customer-
focused, employee empowerment, process-centered,
integrated system, strategic and systematic approach,
continual improvement, fact-based decision making,
and communication.
• The core concepts of TQM are used to drive the
process of continuous improvement. They are The
common barriers in the implementation of TQM are
systems and procedures, culture, organization design,
and management perspectives.
 References
• Oakland, John (2014). Total Quality Management and
Operational Excellence
• Pries, K.H. & Quigley, J.M. (2012). Total Quality
Management for Project Management ISBN 13 978-1-
4398-8505-5 Aurbach Publications, CRC Press
• Charantimath, P.M. (2017). Total Quality Management 3rd
Edition, ISBN 978- 93-325-7939-2 Person India Education
Services Pvt. Ldt.
• https://asq.org/quality-resources/total-quality-
management#Elements