A Comprehensive Guide to Total Quality Management (TQM): What is It, and Why is It Important?

Master Total Quality Management (TQM) with our definitive guide. Learn what TQM is and why it's indispensable for modern businesses.

Last Updated on April 30, 2024 by Ossian Muscad

Quality is a big deal in any industry. In fact, entire frameworks and systems must be dedicated to ensuring quality in all aspects of the business. One of the most popular frameworks for quality management is total quality management (TQM), which is also one of the most popular and comprehensive approaches.

Businesses have used TQM for decades to improve product and service quality, increase efficiency, and boost profits. This guide will discuss what TQM is, why it’s important, and how you can implement it in your business. Let’s get started!

 

What is Total Quality Management?

Total Quality Management (TQM) is a management approach centered on quality, based on the participation of all members of an organization, and aiming at long-term success through customer satisfaction, which benefits all members of the organization and society. TQM requires that the company maintain quality standards in all aspects of its business. This includes everything from the product development phase through the manufacturing process to the final delivery to consumers.

At its core, TQM involves the continuous improvement of organizational processes, resulting in high-quality products and services. The philosophy behind TQM is that consistently higher-quality products and services lead to a higher level of consumer satisfaction, which is ultimately beneficial for the business’ bottom line. Key elements of TQM include a strong focus on customer feedback, continuous improvement, employee involvement, and the integration of a quality management system into the company’s culture and activities.

 

Why is Total Quality Management Important?

Total Quality Management (TQM) is a pivotal precursor to numerous modern quality management methodologies, including Six Sigma and Lean. Many of the core components found within ISO 9001, recognized globally as the premier Quality Management System (QMS) standard, are rooted in the principles of TQM. This historical significance underscores the indelible impact TQM has had on the landscape of quality management.

The importance of TQM cannot be overstated; it provides organizations with an agile framework that is crucial for the successful implementation of quality and productivity initiatives across all facets of business operations. By emphasizing continuous improvement, customer satisfaction, and the involvement of all employees, TQM ensures that quality is woven into the fabric of the organization’s culture. This holistic approach not only leads to improvements in product and service quality but also enhances operational efficiency and competitiveness in the market. In essence, TQM equips businesses with the tools and mindset necessary to excel in today’s dynamic business environment.

 

History of Total Quality Management Principles

The roots of Total Quality Management (TQM) can be traced back to the early 20th century, marking a shift from exclusively product-oriented quality control to a more comprehensive, process-centered approach. A key figure in the development of TQM principles was W. Edwards Deming, whose work in Japan after World War II was paramount. Deming’s methodology, which emphasized statistical quality control and the involvement of all employees in the quality process, was instrumental in the resurgence of the Japanese industry. By the 1950s and 1960s, Japan was producing some of the highest-quality products in the world.

Another pivotal moment in TQM history occurred in the 1980s when the concept gained significant traction in the United States. This period saw American businesses, faced with increasing competition from Japanese companies, adopt TQM as a vital tool to improve quality and operational efficiency. The introduction of the Malcolm Baldrige National Quality Award in 1987 served to further embed TQM principles in the American corporate landscape, setting benchmarks for excellence in quality management.

Internationally, the adoption of ISO 9000 standards in 1987 marked a global recognition of the importance of quality management systems. The standards, which have undergone several revisions to adapt to the changing business environment, draw heavily on TQM principles and provide a framework for organizations worldwide to implement effective quality management systems.

These key events highlight the evolution of TQM from a nascent idea to a globally recognized approach to quality management. Throughout its history, TQM has shown an enduring ability to adapt and remain relevant in the face of changing business practices and technologies, underscoring its fundamental role in the pursuit of quality excellence.

 

Principles of Total Quality Management (Feigenbaum)

In ‘Total Quality Control‘ by Armand V. Feigenbaum, he outlines the concept of Company-wide Quality Control (CWQC), which many experts agree upon as the most direct inspiration for TQM. When exploring the principles of total quality management, his three-step methodology for enhancing quality often emerges as one of the primary concepts considered:

Quality Leadership

Quality Leadership is foundational to the success of Total Quality Management. This principle emphasizes the critical role that leaders play in setting the tone for a culture of quality throughout an organization. Quality leadership involves more than just overseeing processes and outcomes; it requires actively fostering a shared vision for quality, encouraging open communication, and promoting teamwork. Leaders must be champions of continuous improvement, demonstrating Commitment through their actions and decisions. By setting clear expectations, providing necessary resources, and recognizing achievements, leaders can cultivate an environment where quality flourishes. This leadership approach ensures that quality management principles are integrated into every aspect of the organization’s operations, driving the pursuit of excellence.

Quality Technology

In today’s rapidly advancing world, Quality Technology is crucial for bolstering the efficiency and effectiveness of Total Quality Management systems. This principle involves leveraging cutting-edge tools and technologies to enhance quality control processes, from product design and development to manufacturing and service delivery. Quality technology enables businesses to collect and analyze data in real time, identify trends and issues promptly, and implement solutions swiftly. By incorporating technological innovations, such as AI and machine learning, into their quality management systems, organizations can stay ahead of complex challenges, reduce errors, and improve overall product quality. The strategic use of quality technology supports a proactive approach to quality management, ensuring that businesses not only meet but exceed customer expectations.

Organizational Commitment

Organizational Commitment is the bedrock upon which Total Quality Management is built. This principle underscores the importance of an all-encompassing dedication to quality across every level of the organization. From top executives to frontline employees, each member of the organization must understand their role in achieving quality objectives and be fully engaged in the process. This requires a culture shift where quality becomes a shared value and a collective responsibility. Organizational Commitment to TQM is manifested through continuous training, empowerment of employees to make decisions related to quality and the seamless integration of quality management practices into daily operations. By fostering a deep, organization-wide commitment to quality, businesses can ensure sustained excellence and continuous improvement in all facets of their operations.

 

Key Principles of Total Quality Management by (Juran)

Another set of principles within Total Quality Management specifically refers to the three essential processes for managing quality. Commonly known as the Juran Trilogy, Joseph Juran’s Quality Control Handbook sheds light on a different approach in TQM. With that said, let’s delve into the three fundamental principles of his approach to quality management:

Pareto Principle

The Pareto Principle, often referred to as the 80/20 rule, plays a critical role in the realm of Total Quality Management (TQM). This principle posits that in many situations, approximately 80% of the effects come from 20% of the causes. In the context of quality management, this translates to identifying “the vital few and the trivial many” or recognizing the small percentage of root causes in production or service processes that account for the majority of defects or costs.

By focusing on these critical causes, organizations can effectively address the most significant issues impacting their quality and operational efficiency. The application of the Pareto Principle enables businesses to prioritize their quality improvement efforts, ensuring resources are allocated where they can make the biggest difference. This strategic focus not only enhances product and service quality but also significantly reduces waste and increases customer satisfaction.

Management Theory

Management Theory within the framework of Total Quality Management (TQM) represents a significant paradigm shift. It moves away from solely concentrating on the quality of the end product or service to a broader focus that includes the human element in quality management. This approach underscores the importance of leadership, employee engagement, and organizational culture in achieving quality excellence. It advocates for a more holistic, inclusive approach where quality is seen not just as a technical or procedural issue but as a human-centered process that requires active participation from every level of the organization.

Juran Trilogy

The Juran Trilogy is a framework proposed by Joseph Juran, a pioneer in the field of quality management that outlines three fundamental managerial processes that, together, are crucial for achieving high quality. These processes are:

  • Quality Planning is the foundational step in the Juran Trilogy. It involves identifying customers and determining their needs.
  • Quality Control is the second phase in the Trilogy and focuses on the processes of measuring actual performance, comparing this performance to established quality standards, and acting on the difference.
  • Quality Improvement targets the systematic improvement of an organization’s ability to deliver high-quality products or services to its customers. This goes beyond merely correcting defects identified during the Quality Control phase.

 

Total Quality Management Tools

Several different tools can be used to help implement TQM. The most popular TQM tools include:

  • Statistical Process Control (SPC): This tool is used to identify and correct problems in a process. It involves taking regular samples of a process and then using statistical analysis to identify areas that need improvement.
  • Quality Function Deployment (QFD): This tool helps ensure that customer needs are being met. It involves mapping out the different steps in a process and then identifying potential problems and areas for improvement.
  • Failure Mode and Effects Analysis (FMEA): This tool is used to identify potential problems before they occur. It involves identifying all the different ways a process could fail and then taking steps to prevent or mitigate those failures.
  • Total Productive Maintenance (TPM): This tool helps improve equipment reliability and performance. It involves regularly inspecting and maintaining equipment to ensure it is operating correctly.
  • Six Sigma: This tool helps achieve near-perfection in a process by using statistical methods to identify and eliminate defects.

 

Frequently Asked Questions About Total Quality Management

Q1: What’s the difference between TQM and Six Sigma?

TQM and Six Sigma are quality management approaches that aim to improve product and service quality. However, there are notable differences between the two. Six Sigma is typically more data-driven and focused on eliminating defects, while TQM is more proactive and focused on preventing problems from occurring in the first place.

Q2: What is TQM certification?

Certification in TQM is a formal recognition of an individual’s knowledge and skills in implementing Total Quality Management principles and practices. It typically involves completing a training program and successfully passing an exam to demonstrate proficiency in TQM concepts and tools.

Q3: Is ISO 9000 Certification a requirement for TQM?

No, ISO 9000 certification is not a requirement for TQM. While the two are often associated with each other, ISO 9000 is a standard for quality management systems, while TQM is a broader approach to managing and improving quality.

Q4: What’s the difference between TQM and Lean Manufacturing?

The fundamental distinction between Total Quality Management (TQM) and Lean Manufacturing lies in their focus areas: TQM adopts a broad approach, encompassing strategies for quality management across the entire business, whereas Lean Manufacturing zeroes in on reducing waste to enhance quality, specifically within production processes.

Q5: How can TQM be applied in service industries?

TQM can be applied in service industries by focusing on the principles of continuous improvement, customer satisfaction, and employee involvement. This could involve identifying and addressing any gaps in service delivery, involving employees in decision-making processes, and regularly seeking feedback from customers to improve service quality. Additionally, tools such as Quality Function Deployment (QFD) and Failure Mode and Effects Analysis (FMEA) can also be applied in service industries to help improve processes and prevent potential problems.

Q6: Is TQM only relevant to large organizations?

No, the principles of TQM can be applied in organizations of any size. While larger companies may have more complex processes and operations, the core concepts of TQM, such as continuous improvement and customer focus, can be implemented in businesses of all sizes. In fact, smaller organizations may even find it easier to implement TQM as they have fewer layers of management and a more centralized decision-making process.

 

Streamline Total Quality Management with DATAMYTE

DATAMYTE is a quality management platform with low-code capabilities. Our Digital Clipboard, in particular, is a low-code workflow automation software that features a workflow, checklist, and smart form builder. This tool lets you create your own TQM workflows, checklists, and forms to streamline all quality management processes.

DATAMYTE also lets you conduct layered process audits (LPA), a high-frequency evaluation of critical process steps, focusing on areas with the highest failure risk or non-compliance. Conducting LPA with DATAMYTE lets you effectively identify and correct potential defects before they become major quality issues.

With DATAMYTE, you have an all-in-one solution for TQM, including tools for data collection and analysis, process improvement, and employee empowerment. By implementing DATAMYTE in your organization, you can enhance your TQM efforts and achieve consistent, high-quality results. Book a demo now to learn more. 

 

Conclusion

Total quality management is an important approach that can help businesses improve the quality of their products and services. However, it’s important to remember that TQM is not a quick fix and requires Commitment from everyone in the organization. With the right resources and planning, businesses can successfully implement TQM and improve the quality of their operations.

Achieving excellence through TQM is a continuous process that involves consistent effort, a focus on customer satisfaction, and an unwavering commitment to improvement. By fostering a culture of quality that permeates every level of an organization, companies can not only meet but exceed the expectations of their customers, thereby securing a competitive edge in their respective markets.

 

 

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