Total Quality Management (TQM)

Definition and Characteristics of Total Quality Management (TQM)

• Total Quality Management (TQM) is a continuous process designed to improve the quality of all products, services, and operations of a company.
• A TQM approach involves every organisation part, including management, workforces, suppliers, and even customers in some aspects.
• It works on the basis that the quality of products and processes is the responsibility of everyone involved in the manufacturing stages.
• TQM necessitates that the company maintains quality standards in all aspects of business with a view to reduce or eliminate errors, improve the production process and exceed customer expectations.

Principles of Total Quality Management

• Customer-Centric Approach: The primary focus of TQM is to meet and exceed the expectations of customers.
• Continuous Improvement: A key aspect of TQM is the pursuit of quality through incremental and continuous improvements.
• Company-Wide Participation: Everyone in the organisation has a responsibility to ensure the quality of goods or services produced.
• Prevention over Inspection: Quality should be built into the process, not inspected into the finished product - preventing defects is more efficient and cost-effective than fixing them.

Benefits of Total Quality Management

• Implementing a TQM system can significantly boost a company’s reputation as high-quality manufacturers and service providers.
• TQM can lead to increased customer satisfaction and loyalty, resulting in repeat business and referrals.
• By focusing on long-term success through customer satisfaction, a company can ensure its financial longevity and increased market share.
• A TQM approach can lead to improved processes, better staff morale, and less waste, making a business more efficient.

Challenges of Total Quality Management

• Implementing a TQM culture requires significant change management and can often face resistance from employees.
• TQM is a long-term process, meaning that firms may not see the benefits or improvements immediately.
• It requires commitment and consistent effort from the entire organisation, from the top management team down to the operational staff.
• Ongoing training, monitoring, review and improvement can be costly and time consuming.

Examples of Total Quality Management

• Motorola is famously a proponent of TQM, using it to transform their production and business processes and improve their quality performance.
• Toyota utilises TQM principles in their operations, their commitment to constant improvement and defect prevention has led to their reputation as a leading car manufacturer.
• Many firms in the electronics industry such as Sony and Samsung have used TQM to improve product quality and establish a strong brand reputation.
• In the service industry, companies like Starbucks and Zappos have successfully applied TQM to deliver consistent customer service experiences.