What is Total Quality Management?
Total quality management (TQM) is a management philosophy based on a set of beliefs continuous quality improvement of product and process integrity. TQM is founded on the belief that quality is the responsibility of all parties involved in the manufacturing process, and thus ensuring consistency and quality necessitates input and buy-in from all. Cross-functional product design, process management, supplier quality management, customer involvement, information and feedback, committed leadership, strategic planning, cross-functional training, and employee involvement are examples of practises and systems.
What are the principles of Total Quality Management?
Implementation and success will differ from one company to the next, as with most management methods and techniques. While no single approach is universally accepted, the most common TQM definition includes the eight principles listed below.
1. Customer centricity
The first of the TQM principles refocuses attention on the people who are purchasing the product or service. The product's quality is determined by the customers. Customers will know they have spent their money on a quality product if the product meets a need and lasts as long as or longer than expected.
When one knows what the customer wants or needs, they have a better chance of putting the right materials, people, and processes in place to meet and exceed their expectations.
2. Total employee dedication
One can't improve productivity, processes, or sales unless all employees are completely committed. They must comprehend the vision and objectives that have been communicated. In order to be committed to meeting goals on time, they must be adequately trained and provided with the necessary resources.
3. Methodology of the process
Process adherence is essential in quality management. Processes ensure that the right steps are taken at the right time, ensuring consistency and speeding up production.
4. System integration
A typical business has numerous departments, each with its own set of functions and goals. These departments and functions should be linked to horizontal processes, which should be the focus of Total Quality Management. However, these departments and functions can sometimes operate in silos.
Everyone in every department should understand policies, standards, objectives, and processes in an integrated system. Integrated systems assist the company in seeking continuous improvement in order to gain a competitive advantage.
5. An approach that is both strategic and systematic
The International Organization for Standardization (ISO) defines this principle as "identifying, understanding, and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives."
In order to increase efficiency, multiple processes within a development or production cycle are managed as a system of processes.
6. Continuous improvement
Optimal efficiency and complete customer satisfaction do not happen overnight—a company must constantly look for ways to improve processes and adapt products and services to changing customer needs. The other Total Quality Management principles, as previously stated, should assist your company in striving for continuous improvement.
7. Decision-making based on facts
Based on the available information, analysis and data collection lead to better decisions. Making informed decisions allows one to gain a better understanding of the customers and the market.
Everyone in the organisation must be aware of the plans, strategies, and methods that will be used to achieve goals. If you don't have a good communication plan, you're more likely to fail.
What are the benefits of TQM?
1. Fewer product flaws
One of the TQM principles is that products and services are created correctly the first time. This means that fewer defects are shipped with products, resulting in fewer product recalls, future customer support overhead, and product fixes.
2. Customers who are satisfied
High-quality products that meet the needs of customers result in increased customer satisfaction. Increased market share, revenue growth via upsell, and word-of-mouth marketing initiated by customers can all result from high customer satisfaction.
3. Cost savings
Companies save money on customer support, product replacements, field service, and the development of product fixes as a result of fewer product defects. The cost savings are passed on to the bottom line, resulting in higher profit margins.
4. Values that are well-defined
TQM-practicing organisations cultivate core values centred on quality management and continuous improvement. From hiring to internal processes to product development, the TQM mindset pervades all aspects of an organisation.