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Total Quality Management is an ongoing and structured approach of management that leads to long-term success by identifying, minimizing, or eliminating errors in production by enhancing the satisfaction and overall experience of customers, streamlining supply chain management, and ensuring that the employees receive appropriate training. The focus of this approach is on long-term improvements instead of short-term financial profits with the objective to meet the expectations of the customers. The term total quality management was devised in the 1950s by William Deming, a management consultant, and refers to an organization-wide quality management system, where total stands for the involvement of the entire company, including all the departments, teams, and functions in quality management and system stand for all the technical and managerial methods that are employed to meet the quality requirements and objectives of an organization.
According to this management framework, all the parties involved in the manufacturing process, from low-level workers to highest-ranking executives, must be held equally responsible for the quality of the final product or service. This is a horizontal approach that also extends backward and forward to include suppliers as well as clients. These management systems are generally the part of customer-focused organizations that tends to focus on the continual improvement of internal practices, services, systems, work culture, quality improvement, enhancing the productivity, and achieving the satisfaction of customers to build long-term success. Various strategies, data as well as effective communication mechanisms are adopted by this management system to make quality an integral part of the activities and culture of the organization. To attain the objectives of TQM, all the members of a business entity need to work together in order to enhance the processes, quality of products and services, and the culture of their workplace.
Initially, this management framework was applied only to the production sector but was later adopted by other sectors. Though TQM is similar to Six Sigma, but they are not the same; the major focus of TQM is to ensure that internal guidelines are followed appropriately to reduce the errors of process standards, where Six Sigma seeks to reduce defects. Total quality management deals with a number of key principles incorporating them to move the organization towards business excellence.
If total quality management (TQM) is implemented properly, it will minimize the cost of maintenance, enhance the overall performance with increasing the number of satisfied and loyal customers. Though TQM cannot be achieved overnight, integrating certain philosophies throughout every level of management and every department of the company can facilitate the achievement of goals.
Quality can and must be managed: Many organizations are overburdened with customer complaints and a repetitive cycle of chaos with a prevailing belief that their operations are too large for their level of quality to be managed efficiently. Hence the organization must realize the existence of a problem with the belief that every problem comes with an adequate solution.
Processes, not people, are the problem: If processes are the sole cause of any problem, then hiring new employees or training the employees will not help. You will have to first correct the processes, then educate the employees about these new processes.
Do not treat symptoms; look for the cure: Just patching over the underlying problems in the process won’t help an organization to reach its full potential.
Quality is the responsibility of every employee: It must be realized by every employee of the company from low-level workers to the upper-level management team that they play a significant part in ensuring the quality of the product and services. Everyone must give their utmost efforts to satisfy the customers, with setting up and taking responsibility for the organization.
Quality must be measurable: Quantifying the results makes a quality management system effective by observing how the process is implemented and whether it is able to give out the desired results. It will help the organization set its objectives for the future with ensuring that every employee is working towards achieving the same results.
Quality improvements must be continuous: Total Quality Management is not a procedure that can be adopted once and then forgotten, and it is not even a management phase that will end after the problem is solved. To enhance customer satisfaction and loyalty, improvements must take place continuously and frequently.
Quality is a long-term investment: It is not a quick fix; QMS software can be bought to initiate things with the understanding that no one will be able to obtain real results immediately. It is a long-term investment that is formulated to achieve long-term success.
Customer focused: This is the first pillar of TQM, with the experience of customers being the priority of all the organizations. The quality of a product is determined by the satisfaction level of customers. Various techniques are adopted by the organization to improve the quality of their products, including availing proper training to the employees, upgrading their devices or software, or combining quality with design. So that they can receive positive feedback from their customers.
Total employee involvement: All the employees of an organization must work towards achieving a single common goal. Every individual of an organization, from junior workers to management, all are equally responsible for maintaining the quality of products and services. The objective of TQM is to provide an outstanding experience to customers from every department of the organization. Enabling the employees with empowerment and a proper environment along with eliminating any fear-driven from the workplace can help the organization obtain the total commitment of their employees. Integrating high-performance work systems enhances the efforts of all the business operations. Self-managed work teams form the basis of empowerment.
Process centered: Process led thinking and processes form the major focus of TQM, without which a TQM will fail. Process deals with transforming the inputs taken from the suppliers to the outputs that are delivered to the customers by following a series of steps. TQM lays emphasis on all the steps involved in the production process with defining the process, continuously monitoring the performance measures to identify any unexpected variation, and quantifying success to achieve it. The objectives of TQM are to eliminate waste and enhance the efficiencies by determining that the production process is carried out appropriately. A fault in the process is the reason behind most of the problems, hence stressing on the need for effective monitoring of every step for assessing, maintaining, and enhancing the quality.
Integrated Systems: All the business units consist of various functional specialties that are being organized into vertically structured departments. Every organization must adopt an integrated system as it enables effective total quality management. The horizontal process that interconnects these functions forms the major focus of TQM. Every asset available to the company must be leveraged by combining all the discrete parts into one, which maintains the synergy in well-oiled machineries.
Strategic and systematic approach: Adopting a strategic and systematic approach to attain the vision, mission, and goal of the organization is the critical part of total quality management. Strategic planning or strategic management is the process of forming a strategic plan by which quality can be combined as a core component with production.
Continual Improvement: Continual Improvement forms a large aspect of Total Quality Management. This process inclines an organization towards creative and analytical methods to achieve the expectations of stakeholders by being more effective, competitive, and also delivering high-quality products. A culture of continuous improvement can be instilled in an organization by applying DMAIC and Lean Six Sigma principles.
Fact-based decision making: All the available facts, including sales data, customer retention rates, and revenue figures that measure the business performance of an organization, is essential to determine the performance of an organization. To enhance the decision-making mechanism of an organization, make it more accurate, achieve consensus, and to predict the performance according to the past history, the organization must collect and analyze the data regularly. Opinions of employers, suppliers, and customers and guesswork should not be used to form decisions.
Communications: A great role is played by effective communication in enhancing the morale as well as motivating the employees to perform better during all the day-to-day activities and also during the duration of organizational change. Communications involve formulating strategies, methods, maintaining timeliness, and implementing significant changes for the improvement. Every team member must add value to their teams with maintaining communication and transparency.
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PDCA stands for Plan-Do-Check-Act which are the four stages of TQM (Total Quality Management):
Plan: This phase deals with addressing the queries and problems of the employees along with managing the various challenges that are being faced by the employees in their day-to-day operations by analyzing the root causes of these problems. To obtain appropriate solutions for these problems, the quality managers carry out research and collect all the required data.
Do: This phase deals with devising a solution for the pre-identified problems. In this phase, employees develop and implement strategies to combat all the challenges that are being faced. This stage also evaluates the efficiency and effectiveness of strategies and solutions that are devised.
Check: This phase deals with comparing the situation before and after the strategies are being adopted. This phase allows one to assess the effectiveness of the process by measuring the results.
Act: This phase deals with the documentation of results by the employees with preparing themselves to combat other problems.
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