TECHNICAL UNIVERSITY OF MOMBASA

SCHOOL OF BUSINESS

DEPARTMENT OF MANAGEMENT SCIENCE

BACHELOR OF BUSINESS INFORMATION TECHNOLOGY

INFORMATION SYSTEMS AUDIT & IT GOVERNANCE AND ASSESSMENT GROUP

ASSIGNMENT

TOTAL QUALITY MANAGEMENT MODEL (TQM)

BBIT/764J/2020 AHMED ZAINUL AHMED

BBIT/772J/2020 YUSRA AHMED

BBIT/774J/2020 WHITNEY MINAYO

BBIT/765J/2020 BENJAMIN MIGIRO

BBIT/700J/2020 WAWIRA JOSPHINE LINET

BBIT/671J/2020 CHARLES KIAMA

BBI/750J/2020 KATETE JOSHUA

BBIT/664J/2020 ABDALLA HAMARA

BBIT/726J/2020 KEVIN KIPNGENO

BBIT/680J/2020 GRACE GITHUA

Total Quality Management (TQM)

Total Quality Management (TQM) is a method that aims to improve high quality and overall
performance which will meet or exceed consumer requirements. This can be accomplished by
combining all quality-related features and procedures throughout the organization. TQM
examines the all-round quality measures utilized by an organization including organizing high-
quality design and development, quality control and maintenance, quality improvement, and the
quality assurance.

TQM engages every individual within an organization, formulating a culture that propels
enduring success by prioritizing customer satisfaction and delivering benefits to all
organizational members as well as the wider community.

TQM aims to streamline supply chain management while identifying, minimizing, or eliminating
errors. TQM also emphasizes the importance of collaboration, communication, and continual
learning within an organization to foster a creative environment where creative solutions can be
found.

Total Quality Management (TQM) is an inclusive process involving various departments within
an organization, all of which play a role in developing and delivering a product or service. This
includes teams dedicated to design, engineering, marketing, and more. In this system,
management takes on a pivotal role, not as dictators but as facilitators. They are responsible for
ensuring the right personnel are in place, providing comprehensive training, and setting clear,
achievable objectives.

While TQM doesn’t adhere to a one-size-fits-all methodology, it does revolve around eight
fundamental principles that aim to enhance quality. These principles serve as the backbone of
TQM and guide the organization toward continual improvement.

The eight fundamental principles of TQM:

i) Customer focus
ii) Employee involvement
iii) Integrated system
iv) Process-centric approach
v) Systematic flow
 vi) Continual efforts
vii) Fact-based decision-making
viii) Relationship management

Each principle plays a crucial role in shaping the culture and operations of the organization,
driving it toward excellence. The commitment to these principles helps the organization stay
focused on its mission of delivering superior value to customers while promoting a culture of
continuous learning and improvement.

This dedication to quality and improvement sets TQM apart, making it a valuable strategy for
organizations striving for excellence in today’s competitive business environment.

The 8 fundamental principles of TQM

1. Customer focus -In Total Quality Management (TQM), customer focus is not just a
principle but a pivotal cornerstone. This principle underscores the imperative of
comprehending and fulfilling customers’ needs and expectations as a key strategy to
business prosperity. Businesses can cultivate loyalty by placing customer satisfaction at
the forefront, ensuring repeat patronage. This approach goes beyond simply delivering
top-tier products or services. It encompasses exceptional customer care, handling
complaints effectively, and proactively addressing customer concerns. A customer-
centric philosophy can also fuel innovation as companies strive to adapt to evolving
customer demands in an increasingly competitive marketplace.
2. Employee involvement- TQM acknowledges the critical role employees play within an
organization. It underscores that their inclusion in the decision-making processes is
paramount for enhancing overall quality. By encouraging employees to assume
responsibility for their work, a business can significantly improve productivity and,
consequently, the quality of output. In a TQM-oriented environment, employees are
provided with regular training and development opportunities to continually augment
their skills and knowledge base. This elevates morale and propagates a perpetual
improvement culture, fostering an environment conducive to growth and advancement.
3. Integrated systems- An integrated system in TQM refers to a cohesive methodology
where all processes and departments of an organization collaborate towards shared
objectives. It’s crucial to comprehend that each component of the organization impacts
 others in a system, and a modification in one sector may have a ripple effect in another.
Promoting coordination and synergy among different departments through an integrated
system increases efficiency and effectiveness, driving the organization toward its
strategic goals.
4. Process-centric approach- A process-centric approach is another fundamental principle of
TQM. It concentrates on scrutinizing and ameliorating organizational processes to
enhance quality. Understanding the inputs and outputs of each process allows companies
to identify potential bottlenecks and implement necessary improvements. This approach
promotes efficiency and consistency while reducing waste and errors, paving the way for
optimal operational performance.
5. Systematic flow- In TQM, systematic flow refers to the meticulously structured and
sequential arrangement of processes to ensure seamless operation. Each step is
thoughtfully planned and executed, ensuring uniformity and minimizing disruption. This
methodical approach allows for superior control, predictability, and understanding of
each process, culminating in improved quality and productivity.
6. Continual efforts- TQM is characterized by continual efforts, which involve the constant
pursuit of quality enhancement. It’s not a one-off effort but requires continuous
dedication to refining processes, products, and services. This involves using a QMS to set
clear, measurable goals, evaluating performance, and making adjustments as required.
Continual efforts foster a culture of excellence and drive long-term success, pushing the
organization toward its strategic objectives.
7. Fact-based decision-making- TQM espouses a culture of fact-based decision-making,
where decisions are grounded in facts and data rather than assumptions or intuition. This
approach ensures that decisions are objective, reliable, and effective. Leveraging data-
driven insights allows businesses to pinpoint areas for improvement, set realistic targets,
and measure progress accurately. It promotes transparency and accountability, enhancing
the credibility of the organization and fostering trust among stakeholders.
8. Relationship management- TQM emphasizes the significance of forging and maintaining
robust relationships with all stakeholders, including customers, employees, suppliers, and
partners. Effective relationship management can increase trust, cooperation, and mutual
success. It involves open, transparent communication, fair dealings, and a commitment to
meeting each party’s needs and expectations. Successful relationship management can
bolster reputation, increase customer retention, and foster enduring partnerships, thus
ensuring sustainable growth and success.
ADVANTAGES OF TQM
1. Enhances customer satisfaction
Total Quality Management (TQM) places the customer at the center of all activities.
When businesses amplify their focus on the quality of products and services, they are in a
position to meet and even surpass customer expectations.

2. TQM ensures that every aspect of the business – be it manufacturing, marketing, or

customer service – is designed to deliver the highest level of customer satisfaction. This
leads to stronger customer relationships, greater loyalty, and increased repeat business, all
of which are critical for long-term success.

3. Encourages continuous improvement

TQM is built upon the principle of continuous improvement. It encourages organizations
to regularly evaluate their processes, identify areas for improvement, and implement
necessary changes. This relentless pursuit of better methods and solutions fosters a
culture of innovation and growth. It not only helps businesses stay competitive but also
drives them to be leaders in their respective industries.

4. Improves organizational effectiveness

Organizational effectiveness is another key benefit of TQM. By identifying bottlenecks
and inefficiencies in the production process, TQM helps organizations streamline their
operations. This leads to reduced waste, better utilization of resources, and improved
productivity. With TQM, businesses can achieve higher output with the same resources,
thereby enhancing profitability.

5. Boosts employee morale

TQM involves everyone in the organization, from top management to frontline
employees, in the quest for quality. This collective effort creates a sense of ownership
and responsibility among employees. They feel valued, knowing their inputs matter in the
grand scheme of things. This can lead to increased job satisfaction, higher employee
development, and a more engaged and productive workforce.

6. Builds a positive reputation

Consistency in delivering high-quality products and services is a surefire way to build a
strong reputation. TQM ensures this consistency by making quality a core business value.
A positive reputation not only attracts new customers but also retains existing ones.
Moreover, it can turn customers into brand advocates who promote the business through
word of mouth, thus contributing to business growth and success.

7. Improved Quality: TQM focuses on continuous improvement, ensuring products and

services consistently meet or exceed customer expectations.

8. Reduced Costs: Through efficient processes, waste reduction, and fewer defects, TQM
can lower costs associated with rework, returns, and customer complaints.

9. Increased Efficiency: TQM emphasizes employee involvement and empowerment,

leading to better teamwork, communication, and productivity.

10. Better Decision Making: TQM relies on data-driven decision-making processes,

fostering a culture of analysis and informed choices.

11. Competitive Advantage: Companies implementing TQM often gain a competitive

edge in the marketplace due to their reputation for quality and reliability.

12. Continuous Improvement: TQM fosters a culture of continuous improvement,

ensuring organizations adapt to changing market conditions and stays ahead of the
competition.

DISADVANTAGES OF TQM
1. High Implementation Costs: The initial investment required for implementing TQM
can be substantial. This includes expenses for training programs, quality improvement
tools, hiring quality experts, and restructuring processes.

2. Resistance to Change: Introducing TQM often disrupts established workflows and

may encounter resistance from employees who are comfortable with existing
practices. Resistance can stem from fear of job insecurity, skepticism about the
benefits of change, or simply discomfort with new methodologies.

3. Time-Consuming: TQM demands significant time and effort to implement effectively.

This includes time spent on training employees, re-engineering processes, collecting and
analyzing data, and monitoring quality metrics. The ongoing commitment to continuous
improvement can also be resource-intensive.

4. Complexity and Bureaucracy: In some cases, TQM initiatives can lead to the creation
of overly complex quality management systems. Excessive documentation, rigid
procedures, and bureaucratic structures can stifle innovation, slow decision-making, and
impede responsiveness to customer needs.

5. Employee Burnout: The relentless focus on quality improvement and meeting stringent
standards can put excessive pressure on employees. This can lead to burnout, decreased
morale, and increased turnover if not managed properly. Employees may feel
overwhelmed by the demands of TQM and struggle to maintain a healthy work-life
balance.

6. Risk of Overstandardization: While standardization is a core principle of TQM, there's

a risk of overstandardization, where flexibility and creativity are stifled in favor of rigid
adherence to prescribed processes and procedures. This can hinder innovation and
adaptability, particularly in rapidly changing environments.
 7. Potential for Misinterpretation: Misinterpretation or misapplication of TQM principles
can lead to unintended consequences. For example, focusing solely on meeting quality
targets without considering broader organizational goals may result in short-term gains
but long-term inefficiencies.

9. Resistance from Middle Management: Middle managers may resist TQM initiatives if
they perceive them as a threat to their authority or autonomy. They may also be reluctant
to allocate resources or change established practices that have served them well in the
past.

Organizations that use TQM include;

Toyota: Toyota is often cited as a leading example of TQM implementation through its
Toyota Production System (TPS). The TPS focuses on continuous improvement
(Kaizen), just-in-time production, and respect for people, which has resulted in high-
quality products and efficient manufacturing processes.

Ford Motor Company: In the 1980s, Ford embraced TQM to revitalize its operations and
compete with Japanese automakers. Ford's focus on quality improvement, employee
involvement, and customer satisfaction significantly improved its product quality and
market position.

Motorola: Motorola is known for developing the Six Sigma methodology, which is
closely related to TQM principles. The company's commitment to quality and continuous
improvement helped it reduce defects and improve overall operational efficiency.

Procter & Gamble (P&G): P&G has implemented TQM practices to enhance product
quality and operational efficiency. The company emphasizes customer focus, process
improvement, and employee involvement to maintain high standards across its product
lines.
General Electric (GE): Under the leadership of Jack Welch, GE adopted Six Sigma, a
methodology that aligns with TQM principles. The focus on reducing variability and
defects led to significant cost savings and quality improvements across GE's diverse
businesses.

Hewlett-Packard (HP): HP has long been a proponent of TQM and has integrated it into
its corporate culture. The company uses TQM principles to drive continuous
improvement in product development, manufacturing, and customer service.

Xerox: Facing stiff competition in the 1980s, Xerox adopted TQM to revitalize its
business. The company focused on benchmarking, process improvement, and employee
involvement, which helped it regain market share and improve quality.

Sony: Sony has utilized TQM principles to ensure the high quality of its electronic
products. The company's commitment to continuous improvement, customer focus, and
innovation has contributed to its reputation for reliable and cutting-edge technology.