Relevance of total quality management in business management?

TQM is a management methodology that focuses on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organisation and to society.

The principles of TQM:

·Quality can and must be managed.

·Everyone has a customer and is a supplier.

·Processes, not people are the problem.

·Every employee is responsible for quality.

·Problems must be prevented, not just fixed.

·Quality must be measured.

·Quality improvements must be continuous.

·The quality standard is defect free.

·Goals are based on requirements, not negotiated.

·Life cycle costs, not front end costs.

·Management must be involved and lead.

·Plan and organize for quality improvement.

Total Quality Management is an organisation-wide management of quality. Management consists of planning, organising, directing, control, and assurance. The methodology is based on :

·Kaizen – Focuses on "Continuous Process Improvement", to make processes visible, repeatable and measurable.

·Atarimae Hinshitsu – The idea that "things will work as they are supposed to" (for example, a pen will write).

·Kansei – Examining the way the user applies the product leads to improvement in the product itself.

·Miryokuteki Hinshitsu – The idea that "things should have an aesthetic quality" (for example, a pen will write in a way that is pleasing to the writer).

TQM Examples

Companies who have implemented TQM include Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.

The Ten Steps to TQM:

·Pursue New Strategic Thinking

·Know your Customers

·Set True Customer Requirements

·Concentrate on Prevention, Not Correction

·Reduce Chronic Waste

·Pursue a Continuous Improvement Strategy

·Use Structured Methodology for Process Improvement

·Reduce Variation

·Use a Balanced Approach

·Apply to All Functions

History

The term TQM was coined by a US Navy Officer in the early 80s. TQM also owes its origin to Dr. Armand Feigenbaum and his book 'Total Quality Control'. This term was immediately taken up in Japan and is to this day, the term used to describe their approach to Quality Management. It is quite different to the interpretation implied in TQM and embraces both Six Sigma and Lean Manufacturing. TQM is an approach for continuously improving the quality of goods and services delivered through the participation of all levels and functions of the organisation.

Each organisation must tailor its approach to exploit strengths and concentrate on weaknesses. Activities that are necessary include:

·A realization that in a global marketplace, customer satisfaction is the key to survival and success.

·Understanding that quality improvement is key to increased customer satisfaction, increased productivity and reduced cost. Have a clear well-defined objective.

·The commitment of a leader to the philosophy of TQM.

·A change in the organisation's culture to accept the tenets of TQM. Beware of people who use quality to establish fiefdoms and people who remain in powerful positions but don't get with the program.

·Training from top to bottom. Use the "five-why's". Use statistics wisely and where appropriate.

·Try not to do too much too soon.

·Don't take a cookie-cutter approach. Limit the number of consultants and train your employees internally.

·Focus on the low-hanging fruit.

TQM is "A process for managing quality; it must be a continuous way of life; a philosophy of perpetual improvement in everything we do."