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Article • 8 min read
Total Quality Management (TQM)
Delivering quality at every level.
Written by the Mind Tools Content Team
Stop for a second, and think of all the pieces that need to come together to deliver a product to your customer.
From the time your customer considers purchasing your product to the delivery of that product, how many processing points are there? Dozens? Hundreds? An order is placed. A requisition is made. Raw materials are ordered. Items are manufactured. Finished goods are inspected. A delivery method is set. Customer contact is made.
All of these activities impact the quality of what you deliver, and a mistake or miscalculation in one small area can affect everything else.
Poor quality is often the result of poorly planned and executed processes. With the correct systems in place to create and check quality, you have a much higher chance of getting the order right and satisfying your customer.
So, if all the activities we mentioned contribute to the final product or service, that means that virtually every department is involved – not just manufacturing or operations, but also human resources, accounting, marketing, and so on.
This is the essence of Total Quality Management (TQM). There's no one "right" definition or explanation of TQM, but it's essentially a management philosophy in which everyone in the organization strives to continuously improve customer satisfaction. The emphasis is on planned improvement – a continuous cycle of improvements and feedback that provides the best possible products and services.
TQM originated in Japan. Most people credit W. Edwards Deming, a statistician who lectured on statistical process control in Japan after World War II, with importing the idea to the U.S. Deming outlined 14 points of TQM, and the philosophy took off from there. Other notable TQM personalities include Kaoru Ishikawa, Philip Crosby, and Joseph Juran.
TQM and a Culture of Quality
For TQM to work, everyone in the organization has to be involved. It takes a "culture of quality," where people are constantly looking for ways to improve the process and the product. The Japanese have a name for this type of approach: kaizen. Kaizen is the idea that people at all levels of the organization are responsible for finding inefficiencies and suggesting improvements.
With a TQM approach, there are three main opportunities to make improvements and increase efficiency:
- External customers – What can you do to make sure your customers are completely satisfied with your product or service?
- Internal customers – How can you make sure your suppliers and staff know what they need to deliver so you can produce a quality product?
- Business processes – How can you improve the processes themselves, decreasing costs and time spent?
TQM is not limited to manufacturing. TQM is a company-wide philosophy that dictates how business is conducted. It can involve recruiting new staff, motivating current staff, deciding which workers go on which team, or deciding how to restructure your organization. TQM is at the core of everything – guiding you toward a more efficient and effective workplace. Quality products and services are built by quality people who work together in a quality environment.
Principles of TQM
To start building a culture of quality, consider applying these five key management principles within your organization.
1. Use "Plan-Do-Check-Act" (The Deming Cycle)
This is a structured problem solving system based on the scientific method of hypothesize-experiment-evaluate.
- Plan – Take the lead in making an improvement. Define and analyze the problem, set a goal, map out a process, collect and analyze data, and identify root causes to address.
- Do – Run a pilot of the proposed solution on a small scale.
- Check – Review the pilot. Gather data and analyze the results of the proposed solution.
- Act – Once you're confident that the pilot has been successful, deploy the solution fully.
Read more about the Plan-Do-Check-Act cycle here .
2. Empower Your Staff
TQM is more likely to work when every member of the team participates in improvement initiatives. Many times, the best solutions and changes come from the people who work with the process on a daily basis.
- Provide adequate training for staff, and understand what motivates their performance.
- Set up systems for high staff participation.
- Start a system for staff to make suggestions and communicate their ideas.
- Recognize and reward contributions.
- Aim for team excellence, not individual performance.
- Develop cross-functional teams to improve overall understanding of business goals.
3. Apply Statistics in Your Decision Making
TQM is an analytical process. It requires data and results to monitor and evaluate improvement.
- Collect data on what your customers want and need. Don't guess or use secondhand data.
- Survey your staff to better understand the pressures and challenges they face.
- Analyze the inputs and outputs of the process.
- Use statistical process control (SPC). Create control charts that map a process and identify trends that alert you to problems.
- Apply other statistical problem solving and decision making tools, where appropriate. See Failure Mode and Effects Analysis (FMEA), Systems Diagrams , and Cause and Effect Diagrams .
4. Continuously Improve
Look for improvements everywhere, and follow kaizen .
- Define, achieve, and maintain standards.
- Continuously measure production and performance.
- Look at long-term improvements rather than short-term gains.
- Understand systems, and realize that a problem may have multiple, interdependent causes.
- Don't just put out fires – work smarter, not harder.
- Build review processes to prevent mistakes from happening in the first place.
- Eliminate waste wherever possible.
- Adopt a zero-defects philosophy – do it right the first time, all the time.
5. Focus on Your Customers
Look at your operations from the perspective of your customers – both internal and external.
- Build great supplier relationships – create mutually beneficial arrangements, and provide clear instructions and reasonable expectations.
- Take care of internal customers – provide great supervision, a good working environment, and motivation for maximum performance.
- Don't sacrifice quality for other measures of success.
- Define your standards based on customer expectations.
- Continuously scan customers' needs, and make changes as needed.
- Solve problems without blaming anyone or denying your own responsibility.
While TQM has been responsible for extraordinary advances in product and service quality, it has now largely been superseded by approaches like Six Sigma . Six Sigma takes TQM to the next level, seeking to achieve a rate of fewer than 3.4 failures for every 1,000,000 opportunities for failure.
Following a TQM philosophy can lead your company to deliver high-quality products and services. and create a great working environment to attract and retain staff. But quality doesn't just happen. It takes a large commitment, many hands, and much internal analysis. The end result is a complete organizational system that's constantly improving, growing, and developing. Apply the TQM philosophy and principles in your organization, and watch it become healthier and more productive.
Apply This to Your Life
Start today.
Look at the systems your organization has in place. Together with your team, map out the processes. How do they work? Do you see any gaps? Create systems and processes to fill those gaps.
Analyze your management style. Do you encourage or hinder staff involvement? What can you do differently?
Think about the relationships you have with customers and suppliers. Where are there problems or tensions? What is the cause? How do you communicate? What types of feedback systems are in place? What can you do today to start building stronger bonds?
Take a minute every day to appreciate the people who work for and with you. Recognize their efforts, and work with them to build a great organization.
Remind yourself that quality is key to your business, because a quality company has long-term, quality customers and workers.
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Guide: Total Quality Management (TQM)
Author: Daniel Croft
Daniel Croft is an experienced continuous improvement manager with a Lean Six Sigma Black Belt and a Bachelor's degree in Business Management. With more than ten years of experience applying his skills across various industries, Daniel specializes in optimizing processes and improving efficiency. His approach combines practical experience with a deep understanding of business fundamentals to drive meaningful change.
Implementing Total Quality Management means adopting a philosophy where excellence in operations and customer service is a constant goal, achieved through an organization-wide commitment to continual improvement. It’s a strategy that doesn’t just look at the end product but involves every employee in a collaborative effort to refine processes, enhance efficiency, and elevate the customer experience. This approach doesn’t compartmentalize quality as a departmental responsibility but integrates it into the fabric of the organizational culture, making it everyone’s priority. TQM transforms the traditional management model into a participative and process-oriented culture, ensuring that quality improvement is not a one-time project but an ongoing pursuit of perfection.
What is Total Quality Management (TQM)?
Total Quality Management involves a comprehensive management approach centred around the principle of continuous improvement across all facets of an organization. It underscores the importance of quality not just as a metric for products or services but as a fundamental element that influences customer satisfaction and the overall performance of the business. TQM is distinctive in its inclusive nature, requiring active participation from every level within the organization. This means that everyone from the CEO to entry-level employees is involved in the process of identifying areas for improvement, suggesting changes, and implementing solutions that enhance the quality of the organization’s output. By integrating the efforts of all employees, TQM fosters a culture of quality awareness and improvement, aiming to create an environment where excellence in quality becomes a continuous pursuit, deeply embedded in the organizational fabric and mindset.
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What are the Principles of Total Quality Management?
Total Quality Management, or TQM, is like a set of important rules that help make everything a company does really good and keep making it better over time. Here’s what these rules are all about:
Customer Focus
The idea of customer focus is like making sure everything a company does is aimed at making customers happy and meeting what they want or need. It’s like when a chef tastes the food to make sure it’s just right for the guests. Companies listen to what customers say, good or bad, and use that feedback to make their products or services better. This way, they keep customers coming back and attract new ones too.
Total Employee Involvement
Total employee involvement means everyone who works at the company, no matter their job, gets to help make things better. It’s like a sports team where every player, not just the stars, has a role in winning the game. When everyone shares their ideas and works together, they feel like they’re part of something big and are more likely to care about their work and do a good job.
Process Approach
Using a process approach is like following a recipe to bake a cake. Instead of just throwing ingredients together and hoping for the best, you follow steps that make sure the cake turns out great every time. In a company, this means organizing work into clear steps and making sure everything is done right at each step to get the best final result.
Integrated System
An integrated system is when all the different parts of a company, like sales, production, and customer service, work together like a well-oiled machine. It’s like a relay race where each runner passes the baton smoothly to the next. This teamwork across departments helps the company work efficiently and reach its quality goals.
Strategic and Systematic Approach
This principle is about making a game plan for quality. It’s like mapping out a route before a road trip to make sure you get to your destination. The company sets clear goals for quality and checks regularly to see how they’re doing. This way, they can stay on track or change course if needed to keep improving.
Continuous Improvement
Continuous improvement, or making things better bit by bit, is like leveling up in a video game. Each level challenges you to get a little better. In a company, this means always looking for ways to make products, services, or how work is done a little better. It’s about not settling for “good enough” and always striving for “even better.”
Fact-Based Decision Making
Making decisions based on facts is like using a map and compass when hiking. It helps you choose the best path based on the actual terrain and direction, not just a guess. Companies collect data and analyze it to make informed decisions. This way, they’re more likely to succeed because their choices are grounded in reality.
Communications
Good communication is like having a clear and open conversation. It means making sure everyone in the company knows what’s going on, understands the quality goals, and knows how they can contribute. It’s about making sure messages are clear, so everyone is on the same page and can work together effectively.
What are the Steps that Should be Taken to Implement TQM?
Implementing Total Quality Management is a journey that transforms the way an organization operates, focusing on quality in every aspect of its business. Let’s delve into
the detailed process of implementing TQM.
Step 1: Commitment from Top Management
Leadership commitment is not just the first step; it’s the foundation of TQM. Imagine the leaders as the captains of a ship who decide the course and inspire the crew. They must wholeheartedly believe in the value of TQM and be willing to lead by example. This means allocating resources—time, money, and people—to support TQM initiatives. They also set the tone for a culture that prioritizes quality, where every employee feels responsible for maintaining high standards.
Step 2: Define Vision, Mission, and Goals
Step 3: Employee Training
Step 4: Quality Improvement Teams
Step 5: Develop Quality Measures
Step 6: Continuous Assessment and Improvement
Implementing TQM is a transformative process that changes how an organization operates. It requires commitment, clarity of purpose, education, teamwork, measurement, and an unwavering focus on continuous improvement. When done correctly, it leads to higher quality, greater customer satisfaction, and improved performance across the board.
Benefits of Total Quality Management
The implementation of Total Quality Management offers a range of benefits that can significantly transform an organization. These benefits touch on various aspects of the business, from the quality of products and services to the overall operational efficiency and employee morale. Let’s explore these benefits in detail.
Improved Quality
The most direct outcome of TQM is the enhanced quality of products and services. By focusing on quality in every step of production and service delivery, organizations can significantly reduce errors, defects, and inconsistencies. This leads to products and services that not only meet but often exceed customer expectations. Higher quality translates into greater customer satisfaction, fostering loyalty and encouraging repeat business, which is vital for long-term success.
Increased Efficiency
TQM encourages organizations to examine their processes closely and continuously seek ways to make them more efficient. This involves streamlining operations, optimizing workflows, and eliminating any activities that do not add value. By doing so, organizations can accomplish more with less effort and resources, reducing turnaround times and increasing the capacity to deliver products and services faster and more reliably.
Reduced Costs
Hand in hand with increased efficiency, TQM helps organizations cut costs. By identifying and eliminating waste in processes—such as excess inventory, unnecessary steps, or rework—organizations can significantly lower their operational expenses. Furthermore, by improving quality, businesses reduce the costs associated with defects, such as rework, refunds, and returns, further contributing to financial health and stability.
Employee Satisfaction
TQM places a strong emphasis on involving employees at all levels in quality improvement efforts. This participatory approach not only leverages the collective knowledge and skills of the workforce but also fosters a sense of ownership and pride in their work. When employees see the impact of their contributions to the organization’s quality goals, it boosts their job satisfaction and motivation. A satisfied and motivated workforce is more productive, innovative, and committed to the organization’s success.
Competitive Advantage
In today’s competitive marketplace, quality can be a significant differentiator. Organizations that successfully implement TQM principles can achieve higher standards of quality and reliability in their products and services. This excellence in quality can set them apart from competitors, attracting more customers and enabling them to command premium prices. Moreover, a reputation for quality can enhance the organization’s brand and market position, contributing to long-term competitiveness and growth.
Total Quality Management is much more than a set of techniques or procedures; it’s a holistic approach that infuses quality into every aspect of an organization’s operations and culture. By adopting TQM, organizations commit to a path of continuous improvement, where the pursuit of excellence is a constant goal. The benefits of TQM—improved quality, increased efficiency, cost reduction, employee satisfaction, and competitive advantage—are substantial. These advantages highlight why TQM is not just a good practice but a strategic necessity for organizations aiming for long-term success and excellence. The journey toward total quality is ongoing, requiring dedication and commitment at all levels of the organization, but the rewards are well worth the effort.
- Sallis, E., 2014. Total quality management in education . Routledge.
- Ahire, S.L., Landeros, R. and Golhar, D.Y., 1995. Total quality management: a literature review and an agenda for future research. Production and Operations management , 4 (3), pp.277-306.
Q: What is Total Quality Management (TQM)?
A: Total Quality Management (TQM) is a comprehensive management approach focused on continuous improvement in all aspects of an organization, aiming to ensure that every single process, product, or service meets or exceeds customer expectations. It involves the participation of all employees and encompasses the entire organization.
Q: How does TQM improve customer satisfaction?
A: TQM improves customer satisfaction by prioritizing the quality of products and services. It involves understanding customer needs and feedback, and then using this information to make continuous improvements. This ensures that the products or services not only meet but often exceed customer expectations, leading to higher satisfaction levels.
Q: Can small businesses implement TQM?
A: Yes, small businesses can implement TQM. While the scale of implementation may differ compared to larger organizations, the principles of continuous improvement, customer focus, and employee involvement are applicable and beneficial for businesses of any size. Implementing TQM can help small businesses improve quality, efficiency, and competitiveness.
Q: What role do employees play in TQM?
A: Employees play a crucial role in TQM as it requires the involvement and collaboration of everyone in the organization, from top management to front-line staff. Employees contribute to continuous improvement efforts, identify areas for improvement, and are involved in problem-solving. Their participation fosters a sense of ownership and commitment to the quality goals of the organization.
Q: How long does it take to see the benefits of implementing TQM?
A: The time it takes to see the benefits of implementing TQM can vary depending on the size of the organization, the current state of its processes, and the commitment level of its employees and management. Generally, some improvements can be seen relatively quickly, within a few months, but achieving a full transformation and realizing the comprehensive benefits of TQM is a long-term endeavor that can take several years. Continuous improvement is an ongoing process, so benefits can continue to grow over time.
Daniel Croft
Hi im Daniel continuous improvement manager with a Black Belt in Lean Six Sigma and over 10 years of real-world experience across a range sectors, I have a passion for optimizing processes and creating a culture of efficiency. I wanted to create Learn Lean Sigma to be a platform dedicated to Lean Six Sigma and process improvement insights and provide all the guides, tools, techniques and templates I looked for in one place as someone new to the world of Lean Six Sigma and Continuous improvement.
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