Total Quality Management
Total Quality Management was developed out of Total Quality Control Technique, developed by Armand Feigenbaum in 1954. The concept of TQM was developed by W. Edward Deming, Joseph Juran and Philip Crosby. It focuses on allround development in an organisation to give maximum satisfaction to its customers through quality products and services. The TQM philosophy leads to superior product and process design. As per the concept, the organisations are required to be consumer focussed rather than product focussed.
Meaning and Definition
"Total Quality Management (TQM) is a management philosophy and technique that strives to achieve the best possible results by centering all business activities and processes on customer satisfaction. It is a strategic approach of providing the best to the customers through continuous innovations and improvements in all products, services and processes with the involvement of everybody.
Confederation of Indian Industry (CII) has defined TQM as "meeting the retirements of internal and external customers consistently by continuous improvement in the quality of work of all the employees".
Objectives/Benefits of TQM
1. Defect rectification: The main aim in implementing TQM in an organisation is to detect any defect in the products and services and their rectification. It leads to improvement in the quality of products and services.
2. Mistake prevention: As an initial step to TQM the organisation fixes a day as Zero Defects Day on which the supervisors in the organisation explain programmes to their team members to attain zero defects. It helps to prevent occurrence of mistakes.
3. Avoidance of waste: All-round improvements in operations of the organisation reduces, minimises and in certain cases eliminates wastages of men, materials and time.
4. Reduction of the lead time: Total quality management reduces idle time and wastages of all types, which may, in turn reduces the time and cost required to bring out the product.
5. Increases flexibility and profitability: Flexibility in planning, decision making and implementation avoids wastages of all kinds and improves the quality of products and services. It enhances customer satisfaction, which intern leads to greater profitability.
6. Contended customers: Regular discussion within the organisation helps to understand the varying needs of the customers. Considering their needs, quality goods and services can be provided. It helps to gain more satisfied customers.
7. Improved goodwill: By providing quality products and services through continuous improvements to processes, systems, people, suppliers, etc., the hearts of more satisfied customers are gained. It helps in improving the value of goodwill of the firm, as goodwill of a concern is the value of its satisfied customers.
Characteristics of TQM
1. Totality: Total quality management is expected to give total improvement in all areas, functions and activities of an organisation to provide optimum quality products and services to customers.
2. Improvements: There should be an endeavour to improve the activities of the business. This will help in achieving highest levels of quality and completeness in operations, products and services.
3. Documentation: Documentation helps in dissemination of information to all persons. The information helps persons in visualising their work assignment and responsibilities in quality activities.
4. Foundation: Good organisational system with solid foundation equip the management and employees to provide steady supply of quality products and services as per the requirements of customers.
5. Integrated efforts: Inorder to achieve the benefit of total quality management, there should be integrated efforts from all groups and departments of the organisation.
Elements of TOM
i. Ethics: Ethics is the study of right and wrong, TQM places importance on understanding what is ethical and unethical thing to be done by an organisation as well as by the employees of an organisation. An organisation is expected to institute
. a clear code of conduct to the organisation as well as to its employees inorder to achieve the desired goal.
ii. Integrity: Integrity focuses on acting according to the company values in a honest and open and transparent environment.
iii. Trust: The successful implementation of TQM requires a relationship of trust among individuals who are part of the organisation. The members of the team need to work together, in an atmosphere of trust inorder to provide high quality products or services to the customers.
iv. Training: Training is essential for employees to be able to achieve high levels of quality and efficiency. TQM requires all participants to get the needed training from their superiors.
v.Team work: Inorder to achieve common goals and providing higher level of customer service, team should work efficiently together. Individuals should show how to work together and the team environment should facilitate open discussions about both problems and solutions.
vi. Leadership: Leadership has a crucial role to play in making a team member a valuable part of an organisation. All supervisors and managers should understand the TQM philosophy and should be able to implement them while clearly transmitting values, strategies, direction and goals to the team.
vii. Communication: The only way to continually improve and reach optimal performance is through free flow of information and ideas. Communication should be ever present in the organisation. But it should also involve all external entities like customers, partners, suppliers and stakeholders.
viii. Recognition: This element involves the positive feedback and encouragement within the organisation. All supervisors should identify the contributions made by the members of their team and they should be properly recognised. This boosts both morale and performance.