Total Quality Management (TQM) is a comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback. TQM requirements may be defined separately for a particular organization or may be in adherence to established standards, such as the International Organization for Standardization's ISO 9000 series. TQM can be applied to any type of organization; it originated in the manufacturing sector and has since been adapted for use in almost every type of organization imaginable, including schools, highway maintenance, hotel management, and churches.
As a current focus of e-business, TQM is based on quality management from the customer's point of view. TQM processes are divided into four sequential categories: plan, do, check, and act (the PDCA cycle). Here, planning is the initial step of the total quality management. In this process, establish the objectives and processes necessary to deliver results in accordance with the expected output (customer's requirements). By the end of the planning phase, everyone in the organization should be clear about what they should do, how they should do it, and when they should do it.
History of TQM
The roots of TQM date back to the early 1920s when statistical theory was first applied to product quality control. This concept was further developed in Japan in the 40s led by Americans W. Edwards Deming and Joseph M. Juran. By the 70s the notion of total quality was being discussed. This was seen as company-wide quality control that involves all employees from top management to the workers, in quality control.
In the next decade, more non-manufacturing industries started to adopt TQM principles, and the method was recognized as applicable to all sectors of the economy. With the growth of the TQM idea, a number of similar methods have been developed, such as Six Sigma, lean manufacturing, and the Baldrige Performance Excellence Program.
Key Principles of TQM
TQM is built on a foundation of ethics, integrity and trust. It fosters openness, fairness and sincerity and allows involvement by everyone. This is the key to unlocking the ultimate potential of TQM. These three elements move together, however, each element offers something different to the TQM concept.
Eight elements are key in ensuring the success of TQM in an organization. They are ethics, integrity, trust, training, teamwork, leadership, recognition, and communication. All these elements are considered so essential to TQM that many organizations define them, in some format, as a set of core values and principles on which the organization is to operate.
Benefits of TQM
When implemented properly, total quality management strategies lead to better products, a more streamlined production process, and increased customer satisfaction. With the many benefits of TQM, it's no wonder that many of the most successful companies in the world have implemented this business strategy.
Some of the benefits of TQM include: improved customer satisfaction, improved reputation, higher employee morale, increased innovation, and improved operational efficiency. By improving the quality of your products and services, you can increase customer satisfaction and gain a stronger reputation in your industry. This can lead to increased market share and higher profits.
Implementing TQM in Small Businesses
Small businesses, like any other businesses, strive for profitability. Total Quality Management can serve as a prime solution for improving the competitiveness, effectiveness and flexibility for any organization. It's a way of improving performance and effectiveness in order to achieve customer satisfaction and competitiveness.
Implementing TQM in a small business involves a change in the organizational culture. This change involves teaching employees the theories and principles of TQM, as well as the tools and techniques needed to apply these principles. The culture change is a long-term process that involves a commitment from every level of the organization.
Steps to Implement TQM
The first step in implementing TQM in a small business is to understand the principles and concepts. This involves training all employees in the theories and tools of TQM. The next step is to develop a strategy and plan for implementing TQM. This plan should include specific goals and objectives, as well as a timeline for achieving these goals.
Once the plan is developed, the next step is to implement the plan. This involves changing the organizational culture to one that values quality and continuous improvement. It also involves implementing the tools and techniques of TQM, such as statistical process control, problem-solving techniques, and team building.
Challenges in Implementing TQM
While TQM has many benefits, implementing it in a small business can be challenging. One of the biggest challenges is changing the organizational culture. This involves changing the attitudes and behaviors of all employees, which can be difficult and time-consuming.
Another challenge is the lack of resources. Small businesses often have limited resources, which can make implementing TQM difficult. However, by focusing on improving the quality of products and services, small businesses can increase their competitiveness and profitability.
Conclusion
Total Quality Management is a management approach that originated in the 1950s and has steadily become more popular since the early 1980s. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company’s operations, with processes being done right the first time and defects and waste eradicated from operations.
To be successful implementing TQM, an organization must concentrate on the eight key elements: Ethics, Integrity, Trust, Training, Teamwork, Leadership, Recognition, and Communication. The focus of the process is to improve the quality of an organization's outputs, including goods and services, through continual improvement of internal practices. The standards set as part of the TQM approach can reflect both internal priorities and any industry standards currently in place.