From Good to Great: What is Total Quality Management (TQM)?

Suppose you are in the business landscape in Singapore and are determined to have your business be successful and simultaneously provide ultimate customer satisfaction. 

In that case, you need to know what total quality management is. 

In this article, you will learn everything about total quality management and how it can be helpful for you and your business. 

Let’s start now!

Total Quality Management (TQM): Definition and Background

Total quality management (TQM) focuses on the systematic and structured approach to overall organizational management. TQM aims to improve quality in an organization or business’s outputs, including the services and goods, through continuous improvement of internal practices for each core component. 

But what is the background of total quality management? 

The origin of the phrase total quality management is unknown, but it all started when Walter A. Shewhart introduced “modern quality control.” He wrote a book entitled “Economic Control of Quality of Manufactured Products” in 1931.

Decades later, Joseph M. Juran further developed Shewhart’s work with his own management philosophy. Then, in the 1950s, the TQM framework was created by William Deming, a management consultant whose work contributed to Japanese manufacturing. 

In 1984, the US Navy asked some of its civilian researchers to assess statistical process control and recommend methods for improving the Navy’s operational effectiveness. Deming’s work was recommended and the Navy named their effort “Total Quality Management” in the following year.

In more defined terms, total quality management aims to improve quality and productivity. It examines the guidelines and strategies businesses use to extinguish manufacturing errors (important in the manufacturing sector), improve customer experience, streamline supply chain management, and ensure that employees in the organization are well-trained. 
Total quality management applies in any business, whether a service company or a big corporation. It is a strategic and systematic approach encompassing all factors of an organization. It aims to hold all the people involved in the production process accountable for the overall quality of the product or service.

The Core Principles of TQM

Every organization/business has its management techniques and methods, business processes, strategic planning, etc. Success varies from one company to another. 

Below, we will explore the eight guiding principles in TQM, regardless of the variables of the business endeavor. 

Customer focus and satisfaction

Customer focus and satisfaction is one of the core TQM principles. It puts the emphasis on the customers buying your high-quality products or services. 

On deeper meaning, it refers to paying attention to improving customer satisfaction and customer retention. Customer loyalty is really important to achieve success for your organization.

Continuous improvement (Kaizen)

With continuous effort, there would be continual improvement. 

Kaizen hails from Japanese with Kai (improvement) and Zen (good) combined; it translates to “continuous improvement.” 

This core principle of the TQM approach refers to activities that continuously improve all functions of the organization and involve all employees from all organizational departments and department levels. This includes everyone from CEOs to assembly line workers.

When the continuous effort is done right, there will be better processes that lead to improving quality and creating a humanized workplace.

Employee involvement and empowerment

If you want to see continuous improvement in work processes, you’ll need the total commitment of your employees. Total employee commitment can increase productivity, sales, and operations in cross-functional teams. 

To implement this principle of effective communication, active management participation, acknowledgment of success, and encouragement to your employees are essential. Make sure that you provide constant transparent updates on the development of the organization so all employees are on the same page.

Process excellence and waste reduction

Total quality management’s systematic approach always relies on process flowcharts. Process excellence helps continually improving business processes and operations’ effectiveness, efficiency, and quality through a strategic management framework. 

You need to take care of items that hinder operations like immediate process issues and quality-related issues in order to eliminate waste that can affect production, performance, and quality. Waste, in this matter, is defined as any actions that do not add any value to the process or the customers.

No management approach guarantees long-term success, but well-implemented TQM leads to quality improvement and continual progress.

Informed decision making

One of the key concepts in TQM is the dependence on empirical data and facts. Once implemented, new processes need to be configured and optimized based on data. This leads to more informed and usually, more productive decisions.

This data needs to be available to all relevant teams, steering committees, and even stakeholders.

Integrated systems

When a business is split into different departments, it’s often difficult to cater to interdependencies and function in parallel. 

Integrated systems ensure that departments are interconnected via horizontal processes so that everyone is properly trained to have a shared understanding of processes, quality standards, and KPIs.

Systematic and strategic approach

Every business should have a clear long-term vision and mission. Therefore, each design decision, actionable item, and process should be imbued with the company’s ethos.

Usually, this means having a long-term strategy plan and calendar, or a detailed business plan that dictates the organization’s approach in every aspect in the foreseeable future.

Effective communication

Every member of the organization should be kept in the loop with regard to current and future strategies and plans. 

Effective communication saves time from unnecessary back-and-forths, as well as eliminating errors, therefore reducing resource waste.

TQM Tools and Techniques

To solve almost any kind of problem that arises in an organization, quality management systems, tools, and techniques are created to help you eliminate those problems. 

Here are some of the TQM strategies and tools that you can use.

Quality control charts 

To achieve total quality control, there are seven basic tools that you must familiarize yourself with.

These tools were introduced by Dr. Kaoru Ishikawa in 1968: 

• Check sheet; 
• Graphs (Trend Analysis); 
• Histograms; 
• Pareto charts; 
• Scatter diagrams; 
• Cause and effect diagrams; 
• Control charts.

It is very essential to apply these statistical quality control (SQC) tools when troubleshooting issues within the production processes in the organization. 

Statistical process control (SPC) methods

Statistical process control method refers to using statistical techniques to control a production or process method. 

SPC tools can help you monitor the behavior of the process, identify internal system issues, and create solutions for production errors. 

Quality function deployment (QFD)

Quality function deployment, or QFD, is a TQM tool that provides a graphical methodology for digging up customer needs and expectations – both the stated and unstated.

It is used to make decisions in case the needs and expectations conflict with each other. Its other aim is to drive the customers’ requirements into product development and manufacturing.

Six Sigma methodology

Six Sigma methodology gives you the tools and techniques to identify what’s slowing the production process. It shows you how to improve the process, eliminate delays, and fix issues. 

The Six Sigma aims to reduce the variability, time, and defects experienced in processes in your organization. Six Sigma also increases customer loyalty toward your product.

These tools and techniques are essential in the TQM framework. This arsenal embodies a widely agreed-upon approach to reaching operational excellence and customer satisfaction. 

PDCA Cycle

The PDCA cycle is built upon four basic steps for ensuring continuous improvement: Planning, Doing, Checking, and Acting. 

They can be described as follows:

• Planning: Recognizing an opportunity for improvement and laying out the steps to achieving it.

• Doing: Implementing the steps. This includes employee training and scheduling. If the improvement is not achieved, it can be dismissed or abandoned.

• Checking: Look at the results of the improvement. Analytical data can assist in assessing the value and impact of the changes.
  
• Acting: The organization acts on the results. Depending on the results, the cycle can restart or the results can be standardized.

Implementing TQM: Processes and Best Practices

If you want to implement total quality management processes in your organization, you must follow these basic steps:

• Have a clear mission, vision, goals, and core values.
• Find ways to measure your version of success. You can start by determining how your company is doing regarding market share, financial performance, production quality, customer satisfaction, and employee satisfaction.
• Identify your target market and seek feedback on your product or services.
• Develop a strategic plan and a comprehensive business strategy.
• Make sure you implement consistent monitoring of data and use it for improvement.

The role of the top management system is crucial in the implementation of TQM in the entire organization. The reason is that they are the ones who will make sound and strategic decisions that could help the organization achieve its goals, missions, and objectives. 

Measuring and Monitoring Quality: How to evaluate your success

When measuring success, many companies use internal tools to assess the efficiency, quality, and reliability of their services or products. Measuring the quality of operations and products can lead to an organization continuously improving. 

Here are some tools you can use to measure and monitor quality within the organization.

Key performance indicators (KPIs) for quality

In terms of quality assurance, one of the best tools to use to ensure the quality of the organization is the Key performance indicator or KPI. Any particular business, but not all, uses KPIs to ensure that the organization is delivering quality. 

KPIs are business performance metrics; in the case of Quality KPIs, the metrics are related to quality issues. 

Here are the quality KPIs that you can choose and focus on: 

• Risk; 
• Cost of quality; 
• Quality response; 
• Quality culture; 
• Productivity.

Quality audits and assessments

Quality audits and assessments are independent and systematic examinations of an organization’s integrated systems for quality management. 

The quality audit has two factors:

• Quality system audit: analysis of the internal system which the products are being brought into;
• Service quality audit: analysis of the item or service itself.

Quality audit is typically conducted by an external or internal quality auditor or quality circles at agreed schedules or time intervals, ensuring that the business or organization has a defined total quality management system.

Customer satisfaction surveys and feedback analysis

Collecting customer feedback or surveys is 50% of the job; what makes it 100% is the complete feedback analysis. Customer input and feedback analysis looks into quantitative and qualitative feedback data and creates actionable and valuable interpretations and insights. 

One of the best solutions is to provide on-demand products whenever the customer demands are half met. 

The customers are your decision-making unit (DMU); they are the ones that pour profit into your business, so you have to let them have decision-making accuracy.

Continually analyzed and integrated customer feedback improves customer experience and creates customer retention.

Benchmarking and comparative analysis

Benchmarking and comparative analysis are the two best tools for business control and setting strategic goals. 

In quality planning, benchmarking is essential because it compares your business practices, services, products, or results with other organizations that are best in their niche or leading the industry. 

Comparative analysis is the process of analyzing your competitor’s SWOT (strengths, weaknesses, opportunities, and threats) compared to yours. 

Total Quality Management oversees all organizational development, management, activities, and tasks integral to maintaining a desirable level of excellence in your business and its operations. 
That is why if you have a business or are starting your own business, you should implement TQM as one of your business processes.

Benefits and Business Impact of TQM

Integrating quality in your organizational culture means that Total quality management is undeniably the best tool for organizational advancement. 

Here are some of the benefits that TQM involves:

• It leads to improved quality and creates an integrated system.
• It produces a high productivity rate.
• Allows you to remain competitive in the market, enabling you to adapt quickly to changes in the market.
• It helps eliminate waste and errors, reduces cost, and allows better cost management and higher profitability assurance.
• It increases job security and helps you motivate employees.
• It’s improving processes and increases customer loyalty and retention.

TQM’s focus is on fostering robust and incredibly effective processes, especially when implemented correctly. It would also help enhance your shareholder and stockholder value, giving your brand more awareness to the public and the business landscape. 

Total quality management may have originated in manufacturing, but any business can use its principles.