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Total Quality Management

Total Quality Management (TQM) is a management approach that focuses on customer satisfaction and involves all employees in continual process improvement to improve quality. It uses strategies, data collection, and communication to integrate quality practices into the organization's culture. The key principles of TQM include having a customer focus, total employee involvement, taking a process-centered approach, implementing an integrated system, using a strategic and systematic approach, pursuing continual improvement, making decisions based on facts, and effective communication. TQM aims to strengthen competitive position and can be applied across various industries.

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178 views

Total Quality Management

Total Quality Management (TQM) is a management approach that focuses on customer satisfaction and involves all employees in continual process improvement to improve quality. It uses strategies, data collection, and communication to integrate quality practices into the organization's culture. The key principles of TQM include having a customer focus, total employee involvement, taking a process-centered approach, implementing an integrated system, using a strategic and systematic approach, pursuing continual improvement, making decisions based on facts, and effective communication. TQM aims to strengthen competitive position and can be applied across various industries.

Uploaded by

kaushikbose81
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Total Quality Management (TQM)

Total Quality Management (TQM) is a management approach to ensure long-term success


through customer satisfaction and customer loyalty by continuous effort of the management as well
as all employees of a particular organization. Total quality management can be summarized as a
management system for a customer-focused organization that involves all employees in continual
improvement to improve the quality of an organizations outputs, including goods and services. It uses
strategy, data, and effective communications to integrate the quality discipline into the culture and
activities of the organization.

PRINCIPLES OF TOTAL QUALITY MANAGEMENT:


1. Customer-focused: The customer ultimately determines the level of quality. No matter what
an organization does to foster quality improvementtraining employees, integrating quality into
the design process, upgrading computers or software, or buying new measuring toolsthe
customer determines whether the efforts were worthwhile.

2. Total employee involvement: All employees participate in working toward common goals.
Total employee commitment can only be obtained after fear has been driven from the workplace,
when empowerment has occurred, and management has provided the proper environment. High-
performance work systems integrate continuous improvement efforts with normal business
operations. Self-managed work teams are one form of empowerment.

3. Process-cantered: A fundamental part of TQM is a focus on process thinking. A process is a


series of steps that take inputs from suppliers (internal or external) and transforms them into
outputs that are delivered to customers (again, either internal or external). The steps required to
carry out the process are defined, and performance measures are continuously monitored in order
to detect unexpected variation.

4. Integrated system: Although an organization may consist of many different functional


specialties often organized into vertically structured departments, it is the horizontal processes
interconnecting these functions that are the focus of TQM. Micro-processes add up to larger
processes, and all processes aggregate into the business processes required for defining and
implementing strategy. Everyone must understand the vision, mission, and guiding principles as
well as the quality policies, objectives, and critical processes of the organization. Business
performance must be monitored and communicated continuously. Thus, an integrated system
connects business improvement elements in an attempt to continually improve and exceed the
expectations of customers, employees, and other stakeholders.

5. Strategic and systematic approach: A critical part of the management of quality is the
strategic and systematic approach to achieving an organizations vision, mission, and goals. This
process, called strategic planning or strategic management, includes the formulation of a strategic
plan that integrates quality as a core component.
6. Continual improvement: A major thrust of TQM is continual process improvement. Continual
improvement drives an organization to be both analytical and creative in finding ways to become
more competitive and more effective at meeting stakeholder expectations.

7. Fact-based decision making: In order to know how well an organization is performing, data
on performance measures are necessary. TQM requires that an organization continually collect
and analyze data in order to improve decision making accuracy, achieve consensus, and allow
prediction based on past history.

8. Communications: During times of organizational change, as well as part of day-to-day


operation, effective communications play a large part in maintaining morale and in motivating
employees at all levels. Communications involve strategies, method, and timeliness.

TOTAL QUALITY MANAGEMENT BENEFITS


1. Strengthened competitive position
2. Adaptability to changing or emerging market conditions and to environmental and other
government regulations
3. Higher productivity
4. Enhanced market image
5. Elimination of defects and waste
6. Reduced costs and better cost management
7. Higher profitability
8. Improved customer focus and satisfaction
9. Increased customer loyalty and retention
10. Increased job security
11. Improved employee morale
12. Enhanced shareholder and stakeholder value
13. Improved and innovative processes

TOTAL QUALITY MANAGEMENT DISADVANTAGES


1. Can be difficult to implement

INDUSTRIES USING TOTAL QUALITY MANAGEMENT


While TQM originated in the manufacturing sector, its principles can be applied to a variety of
organizations. With focus on long-term change over short-term goals, it is designed to provide a
cohesive vision for systemic change. With this in mind, TQM is in many industries, including, but not
limited to, manufacturing, banking and finance, and medicine. The techniques can be applied to all
departments within an organization as well. This helps ensure all employees are working toward the
goals set forth for the company, improving function in each area. Involved departments can include
administration, marketing, production and employee training.

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