Total Quality Management (2023)

Total Quality Management Definition (TQM)

Total quality management (TQM) is a standard management practice wherein each employee within an organization continually analyzes its production processes to improve the manufacturing quality of products and services and enhance customer satisfaction. It involves conducting management training and implementing analytical methods to identify and remove problem areas in business operations.

It is a successful management approach commonly employed in industries, such as manufacturing. As part of the quality improvement planning process, the executives train the workforce from different departments about the process standards and define business goals. Not only does TQM help an organization meet customer expectations, but it also helps them minimize operating costs by reducing resource waste due to insignificant practices.

Table of contents
  • Total Quality Management Definition (TQM)
    • How Does Total Quality Management (TQM) Work?
    • TQM Examples
      • Example #1
      • Example #2
    • Principles of TQM
      • #1 – Customer Focus
      • #2 – Employee Involvement
      • #3 – Integrated System
      • #4 – Process-Centric Approach
      • #5 – Systematic Flow
      • #6 – Continual Efforts
      • #7 – Factual Decision-Making
      • #8 – Relationship Management
    • Benefits of TQM
    • Frequently Asked Questions (FAQs)
    • Recommended Articles

Key Takeaways

  • Total quality management meaning refers to an approach wherein each employee at every level in a business is accountable for evaluating products and services per quality standards and customer needs.
  • TQM emphasizes that quality assurance is a shared responsibility that affects all aspects of a company or organization.
  • Customer focus, employee involvement, integrated system, process-centric approach, systematic flow, continual efforts, fact-based decision-making, and relationship management are the eight principles of TQM.
  • Guaranteed customer retention, increased productivity, enhanced stakeholder relationships, improved organizational culture, etc., are some of the benefits of adopting and implementing TQM.

How Does Total Quality Management (TQM) Work?

The ever-evolving and competitive global market make it difficult for a business to dominate the market. Also, the availability of the same types of products from different brands provides customers with multiple options. Therefore, consumers rely on some parameters, including cost, brand popularity, after-service, etc., to decide which product they should buy. Of these, quality always remains the deciding factor.

A quality product, in short, equals customer acquisition and retention. Since every organization adopts a customer-focused approach, quality assurance becomes essential in delivering the best product or service.

American statistician Dr. W. Edwards Deming, who proposed sampling-based quality inspection through his Statistical Quality Control theory, first conceptualized the TQM strategy. He also contributed toward introducing quality control in the quality management measures of the Japanese manufacturers in the 1950s post-World War Second. It became popularized as a total quality management concept in the later years.

(Video) What is Total Quality management (TQM)? | 7 Principles of Total Quality Management

Total Quality Management (1)

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TQM enables organizations to align their workforce with the manufacturing processes to find and eliminate errors to improve the overall quality of their outputs. In doing so, the top management, middle management, and executives assess the end products from every aspect and devise quality production plans accordingly. To prevent or eliminate errors caused by human mistake or faulty system, they take various measures, such as:

  • Detect the issue and prevent it from occurring.
  • Pass it on to the value-added chain for further quality inspection.
  • Stop the production if the errors recur at any stage.
  • Deploy the technological support.
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Aside from that, TQM assists organizations in streamlining supply chain management and checking for the legal compliance of the products manufactured. In short, they want to make sure that the final product is up to the market standards, legal requirements, and customer expectations.

TQM Examples

Example #1

Plasto Toys manufactures plastic toys for kids. The brand managed to acquire a good reputation in the market, and parents relied on it for quality products. However, the regular environmental campaigns on plastic pollution affected the sale of the toys to a great extent, causing the company to incur huge losses.

As a response to this, the company management and executives agreed to implement the TQM approach for manufacturing toys using biodegradable plastics. The marketing department started advertising and promoting how their toys are harmless to the environment. In just a couple of months, Plasto Toys regained its original position in the market.

Example #2

Thisworktalks about the “plan-do-check-act” cycle adopted by AtlantiCare, a healthcare provider in New Jersey. It helps one understand TQM at a deeper level.

(Video) What is Total Quality Management - TQM

With 5,000 employees spread across 25 locations, the firm implemented the TQM approach. It involved each individual from every level to provide vital feedback about the healthcare products manufactured. It led to the top-to-bottom improvement of the products as the concerned human resources took part in the quality assurance process. They observed each product from all perspectives, including customer service, people, process, workplace, etc.

As soon as they implemented the TQM strategy, the healthcare unit initiated its orientation and training program for the new employees. Also, it introduced a crash course to ensure that they understand the company strategy to maintaining quality standards.

This structured approach boosted the company revenueRevenueRevenue is the amount of money that a business can earn in its normal course of business by selling its goods and services. In the case of the federal government, it refers to the total amount of income generated from taxes, which remains unfiltered from any deductions.read more, which rose from $280m to $650m. It further indicated the increased level of satisfaction among the patients.

Principles of TQM

Total Quality Management (3)

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#1 – Customer Focus

Every organization strives to serve only one purpose, i.e., customer satisfaction through quality products and services. Hence, the first among thetotal quality management principlesis customer focus. It means the end product must meet the demands and needs of the customers.

#2 – Employee Involvement

When implementing TQM, organizations need to create an environment where their employees will feel empowered. They, along with management, become responsible for assessing the quality of the products and services at their levels. Here, organizational communication plays a vital role in boosting employee morale.

#3 – Integrated System

Having an integrated system is a must for an organization to implement a TQM strategy across its business processes. Therefore, incorporating quality standards like ISO 9000 standards could help produce quality products and services. It will lead to meeting or exceeding consumer expectations as well.

#4 – Process-Centric Approach

A product or service reaches the market after passing through different processes. It means it is monitored and assessed at each production level and not only at the final stage. Process-led thinking is a sign of effective TQM.

(Video) Total Quality Management (TQM)

#5 – Systematic Flow

TQM is all about strategic planning to achieve quality excellence and business objectives. Thus, considering a systemic flow would ensure the products and services are passing through every stage in the quality production process.

#6 – Continual Efforts

Quality improvement should be a continuous process. Once done and then left would only mean gradual deterioration in the manufacturing standards. For the TQM approach to prove effective, people at every level need to be alert in being regular with quality checking.

#7 – Factual Decision-Making

The organization must make fact-based decisions because every employee is participating in the quality evaluation processes. Analyzing the organizational performance using performance data, such as sales, profit, and customer retention could result in more accurate decision-making.

#8 – Relationship Management

A well-maintained relation with stakeholders like customers and employees will ensure proper quality control procedures and honest feedback. With TQM, organizations can establish effective communication with all of them and implement result-oriented changes.

Benefits of TQM

Let us have a quick look at the benefits of the TQM:

  • Error prevention and elimination
  • Guaranteed customer retention
  • Reduced service costs and increased profits
  • Feedback from all stakeholders
  • Involvement and empowerment of employees at every production level
  • Improved market image
  • Customers becoming the main focus
  • Meeting consumer expectations leads to increased customer satisfaction
  • Improved organizational culture
  • Enhanced stakeholder relationships
  • Boost in employee morale
  • Continuous efforts to meet the quality standards
  • Increased stakeholder value
  • Innovative strategies and creative ideas

Frequently Asked Questions (FAQs)

What is Total Quality Management or TQM?

(Video) Total Quality Management

TQM is a business management approach that entails every employee at every level of the organization feeling accountable for removing the production errors and ensuring the quality of the products and services per customer needs. The error-free production process reduces product and service costs.

What are the eight principles of TQM?

The eight principles of TQM are customer focus, employee involvement, integrated system, process-centric approach, systematic flow, continual efforts, fact-based decision-making, and relationship management. An organization must understand them to achieve excellence in manufacturing processes.

What is the main focus of TQM?

TQM aims to assist organizations in understanding that quality assurance is everybody’s responsibility and is not limited to any one segment. Its main aim is to develop quality products and services, retain customers in the competitive market, increase sales revenueSales Revenueread more, and boost profitabilityProfitabilityProfitability refers to a company's abilityto generate revenue and maximize profit above its expenditure and operational costs. It is measured using specific ratios such as gross profit margin, EBITDA, andnet profit margin. It aids investors in analyzingthe company's performance.read more.

Recommended Articles

This has been a guide to Total Quality Management and its definition. Here we discuss key elements, examples, principles, and how does TQM work, along with its benefits. You may learn more about financing from the following articles –

(Video) Total Quality Management in the Field of Organizational Behavior

  • Cost of Quality
  • Quality of Conformance
  • Economic Inequality

FAQs

How does TQM improve quality? ›

Use TQM to Improve Customer Satisfaction

A primary focus of TQM and most Quality Management Systems is to improve customer satisfaction by having a customer focus and consistently meeting customer expectations. Customers are almost always satisfied when their expectations are met.

Why is total quality management important? ›

Importance of TQM

TQM can have an important and beneficial effect on employee and organizational development. By having all employees focus on quality management and continuous improvement, companies can establish and uphold cultural values that create long-term success to both customers and the organization itself.

How can TQM make your business successful? ›

Total Quality Management is a philosophy that articulates unvarying commitment to quality in all fields of an organization and promotes an organizational culture to meet consumers' perceptions of quality” With implementation of TQM; organizations lead to improve customer satisfaction, reduce costs, and foster team work ...

How can you apply TQM in your daily life? ›

Highlight what your habits were BEFORE and what CHANGES you will do to live a meaningful life after studying TQM.
  1. LIFE BEFORE AND AFTER TQM:
  2. Sort — Eliminate whatever is not needed.
  3. Straighten — Organize whatever remains.
  4. Shine — Clean the work area.
  5. Standardize — Schedule regular cleaning and maintenance.
13 May 2017

How quality is important? ›

Good quality management can enhance your organisation's brand and reputation, protect it against risks, increase its efficiency, boost its profits and reduce waste, and position it to keep on growing. All while making staff and customers happier.

What is total quality management in simple words? ›

Total quality management (TQM) is the continual process of detecting and reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience, and ensuring that employees are up to speed with training.

How can TQM help you as a student? ›

Adapting to TQM (Total Quality Management) will make important changes in classroom. By the help of this method, the communication distance between student and teacher will disappear. Therefore, student and their self-confidences will increase within guidance.

What is the main focus of TQM? ›

TQM focuses on the creation and implementation of processes that provide organizations with the ability to find success and repeat it. Quantifying success and defining the steps taken to get there are essential for successful implementation of TQM. System integration.

How do you achieve quality performance? ›

Read on to learn strategies you can start implementing today to improve your job performance.
  1. Stop Multitasking and Start Focusing. ...
  2. Set Goals and Personal Benchmarks. ...
  3. Determine Your Strengths and Weaknesses. ...
  4. Volunteer to Do More. ...
  5. Foster a Healthy Work-Life Balance. ...
  6. Practice Clear Communication.

How can TQM help to improve the products and services? ›

Total quality management (TQM) is a management strategy that emphasizes a continuous, organization-wide effort to maintain quality customer service and satisfaction. The goal of TQM is to foster customer loyalty by delivering service levels that keep customers coming back again.

How TQM affects the performance of an organization? ›

The findings of this study reveal that the implementation of TQM improves the operational performance of organisations, which ultimately affects the other dimensions of performance such as financial performance, customer satisfaction, and other stakeholders' performance. The study conducted by O'Neill et al.

How does TQM reduce errors? ›

While an approach like Six Sigma looks at reducing defects through a methodological process, TQM focuses on combining people and processes to reduce errors. It takes a preventative approach to quality, usually through error-proofing or early error detection.

What is critical to the success of TQM? ›

The critical success factors of TQM are management commitment and leadership; continuous improvement; total customer satisfaction; employee involvement; training; communication and teamwork.

How TQM helps in reducing cost? ›

TQM helps in reducing total quality costs. It is based on the principle of preventing defective products/services rather than being at an expense of quality failure cost. So basically, it aims to manufacture zero defect products/services. Consequently, this brings in cost reduction and thus increased profitability.

Why is quality important in everyday life? ›

High-quality goods can help you feel better about yourself; they will be more fit for purpose, look better and be more reliable.

Can quality management systems be applied to our daily activities? ›

You use quality management within your improvement strategies, but did you know it can also be used across many other parts of everyday life as well as work? These principles may seem to only apply to certain areas of business, helping your company improve on a continuous scale.

How can TQM help the hospitality industry in our current situation give examples? ›

They are: increased quality of product and of service • increased customer satisfaction • better company competitive ability and market strength • reduced business costs • increased business profits • increased employee satisfaction • increased management quality • improved company reputation and reliability.

How do you manage quality issues? ›

quality problems.
  1. Identify the problem or symptom. You shouldn't assume that everyone knows the problem. ...
  2. Identify the root cause. Try to identify the root cause of the problem and explain. ...
  3. Determine alternatives and impacts. Once the cause is identified, you should look at the. ...
  4. Select the best alternative. ...
  5. Execute. ...
  6. Monitor.
25 Jul 2006

What quality means to you? ›

Report Ad. In business, quality means the standard of a product or service when compared to other products or services of a similar kind. You can think of quality as being a measure of the degree of excellence of something.

What is quality performance? ›

1. A numerical measurement of the performance of an organization or process assessed through measurement of physical products and statistical sampling of the output of processes.

Who is responsible for total quality management? ›

There are costs involved with the entire process of total quality management. It is the manager's responsibility to allocate budgets for TQM at the beginning of every financial year.

What is total quality management example? ›

Total Quality Management Example:

TQM Example: One of the most famous examples of total quality management is Toyota. Toyota implemented Kanban System to make its assembly line more efficient. The company decided to keep just enough inventories to fulfill customer orders as they were generated.

Which of the following best describes total quality management? ›

Which of the following best describes total quality management? the sum of all activities involved in getting high-quality products into the marketplace.

Why Total quality management is important in education? ›

Peak maintains that TQM improves educational organizations in many ways, such as improving education process, making the educational environment motivating, improving educational curriculum, boosting the speed of training services and reducing costs [31].

Why is quality management important in education? ›

Due to the fact that the educational system management is said to be market-oriented activity, total quality management can be considered as the effective technique which will constantly push organization to the improvement on all of its levels and will help to create a place of trust, respect and collaborative work.

Why quality management is necessary in education? ›

It enhances a feeling of confidence and trust and alleviates insecurity and fear among members of an institution. It helps an institution to work within its budget and predetermined time limit;; and to establish a flexible design and infrastructure so as to enable the institution to fulfill changing societal demands.

Why is teamwork so important in TQM? ›

Teamwork – To become successful in business, teamwork is also a key element of TQM. With the use of teams, the business will receive quicker and better solutions to problems. Teams also provide more permanent improvements in processes and operations.

How do you improve employee quality? ›

Other 18 areas of improvement at work
  1. Improve your time management. ...
  2. Try to do important tasks first. ...
  3. Set clear goals. ...
  4. Improve your communication skills. ...
  5. Don't try to do your own, delegate. ...
  6. Make use of the right tools. ...
  7. Give yourself down time. ...
  8. Encourage desk cleanliness and organization.
17 Jan 2022

How can quality control be improved? ›

For a proven method of enhancing quality control and meeting these various objectives in your organization, follow these five key tips:
  1. Build Proper Processes. ...
  2. Keep a Clean Workspace. ...
  3. Hold Unscheduled Equipment Use Tests. ...
  4. Identify Essential Spare Parts. ...
  5. Ensure Managers are Properly Trained.
30 Nov 2016

How can I improve my process at work? ›

How To Improve Your Work: 7 Steps To Improve Processes
  1. Select a process to improve. ...
  2. Assign responsibility for the change effort. ...
  3. Write down your current steps within that process. ...
  4. Identify bottlenecks, roadblocks, and issues. ...
  5. Find ways to resolve the issues. ...
  6. Test your new process.

How can TQM improve the profitability of organizations? ›

TQM increases profits by concentrating on quality advancement and focuses on related challenges.
...
TQM is used for:
  1. Increase in production.
  2. Reduced rework and scrap.
  3. Improved production consistency.
  4. Reduced client service issues.
  5. Increased advantage in competition.
2 Jan 2011

How does TQM results in employee satisfaction? ›

TQM practices such as teamwork, reward and recognition, organizational culture, customer focus and organizational trust are positively associated with job satisfaction within their organization.

Why does total quality management lead to performance improvements? ›

TQM practices also allow firms to improve their production processes and product designs and reduce the process complexity, which improves the operational (Franco et al., 2020) and financial and nonfinancial performance (Sila, 2020; García-Bernal and Ramírez-Ales on, 2015) .

Is Total Quality Management helps in traditional way of management? ›

Traditional quality management requires the reproduction of any product with defects. It addresses problems as they arise, resolving them on a case-by-case basis. Total quality management, on the other hand, emphasizes eliminating waste and increasing efficiencies so that a product is produced correctly the first time.

How can TQM improve productivity? ›

TQM is basically formed to increase quality goods and services, through continuous improvement so that increasing productivity. Productivity can be measured based on its type, namely total productivity and partial productivity is productivity of each resource includes human resources.

What are the limitation of TQM? ›

These disadvantages may include high implementation costs, unseen benefits early on, and resistance to change from employees. Companies must weigh the benefits against the disadvantages to assess whether or not total quality management will work in the business.

What do you mean by quality management? ›

Quality management is the act of overseeing all activities and tasks needed to maintain a desired level of excellence. Quality management includes the determination of a quality policy, creating and implementing quality planning and assurance, and quality control and quality improvement.

What are the human aspects for success in TQM projects? ›

The following factors are considered as essential and crucial for achieving successful TQM execution within any company.
  • Management commitment and understanding: ...
  • Customer focus: ...
  • Employees involvement and participation: ...
  • Training and education: ...
  • Communication: ...
  • Culture:
2 Aug 2019

Why quality cost is important? ›

The true concept of cost of quality is a financial measure of the quality performance of an organization, helping to optimize the various costs to achieve the best quality achievable at a more reasonable price. In order to cut internal and external failure costs, prevention and appraisal costs must be increased.

What is the purpose of total cost quality? ›

The goal of calculating the cost of quality is to create an understanding of how quality impacts the bottom line. Whether it's the cost of scrap and rework associated with poor quality, or the expense of audits and maintenance associated with good quality, both count.

What is TQM and its importance essay? ›

Total Quality Management (TQM) is a set of quality and management tools employed in order to increase the performance of a business by reducing losses and increasing turnover. It aims at continually improving the quality of delivery of goods, services and all the functions of a business venture.

How can TQM reduce the cost of quality? ›

Ways in which TQM can reduce the cost of quality

Train employees at all levels, so that everyone understands their role in quality management. Develop work systems that empower employees to find new ways of improving quality. Work closely with suppliers to improve the quality of raw materials/inputs.

How TQM helps in continuous improvement? ›

Total quality management is widely recognized as an effective method to achieve continuous quality improvement by enhancing the overall performance of an organization. It refers to the collection of efforts aimed at improving customer satisfaction using an integrated system of techniques, tools, and training sessions.

How can TQM improve productivity? ›

TQM is basically formed to increase quality goods and services, through continuous improvement so that increasing productivity. Productivity can be measured based on its type, namely total productivity and partial productivity is productivity of each resource includes human resources.

How does TQM reduce errors? ›

In manufacturing, using a TQM approach ensures that internal practices are set up to reduce errors and streamline processes. While an approach like Six Sigma looks at reducing defects through a methodological process, TQM focuses on combining people and processes to reduce errors.

What is the conclusion of quality management? ›

Conclusion. Total Quality Management is practiced by many business organizations around the world. It is a proven method for implementing a quality conscious culture across all the vertical and horizontal layers of the company.

What are the benefits of good quality? ›

Reduced costs and better cost management. Higher profitability. Improved customer focus and satisfaction. Increased customer loyalty and retention.

How TQM affects the performance of an organization? ›

The findings of this study reveal that the implementation of TQM improves the operational performance of organisations, which ultimately affects the other dimensions of performance such as financial performance, customer satisfaction, and other stakeholders' performance. The study conducted by O'Neill et al.

What is total quality management in simple words? ›

Total quality management (TQM) is the continual process of detecting and reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience, and ensuring that employees are up to speed with training.

What is quality mindset? ›

In order to improve continuously, you need a quality mindset. Which means you're always willing to go the extra mile, growing every day. To do that, you have to start with improving something small. After each improvement, reflect on what you've accomplished and how this makes you feel.

How TQM can improve profitability? ›

TQM increases profits by concentrating on quality advancement and focuses on related challenges.
...
TQM is used for:
  1. Increase in production.
  2. Reduced rework and scrap.
  3. Improved production consistency.
  4. Reduced client service issues.
  5. Increased advantage in competition.
2 Jan 2011

How can TQM help you as a student? ›

Adapting to TQM (Total Quality Management) will make important changes in classroom. By the help of this method, the communication distance between student and teacher will disappear. Therefore, student and their self-confidences will increase within guidance.

What can TQM provide for organization? ›

TQM enables the organizations to conduct research on any undergoing challenges/ problems so as to come up with solutions for the same. Thus, organizations escalate their research and bring in innovative marketing decisions. The implemented innovative approach to the core and peripheral services attracts the customers.

What is the ultimate goal of TQM? ›

The basic goal of Total Quality Management (TQM) is to involve all levels and functions of an organization in continually meeting and exceeding the customer's expectations of their daily operations, products or services.

How do you create a strong quality culture in an organization? ›

7 Tips For Creating a Quality Culture
  1. Define and outline company values. ...
  2. train employees in quality culture. ...
  3. Pursue Quality instead of chasing compliance. ...
  4. Implement document control Early On. ...
  5. Communicate Clearly With Regulators. ...
  6. Seek End-USer Feedback. ...
  7. Use a Right-sized QMS.
28 Jul 2019

What is the highest priority of TQM? ›

Customer-driven Quality: TQM has a customer-first orientation. The customer, not internal activities and constraints, comes first. Customer satisfaction is seen as the company's highest priority. The company believes it will only be successful if customers are satisfied.

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