Basic TQM Concept

Basic Concept of TQM

Six Basic Concepts of TQM, According to B. Creech: 

1..A committed and involved management to provide long-term top-to-bottom organizational support.

2.Unwavering focus on the customer, both internally and externally.

3.Effective involvement and utilization of the entire work force.

4.Continuous improvement of the business and production process

      5.Treating suppliers as partners.

      6.Establish performance measures for the process.

These concepts outline an excellent way to operate a business organization:

1.       Management must participate in the quality program. A Quality Council must be organized to develop a clear vision, set long-term goals, and direct the program. Quality goals are included in the business plan. An annual quality improvement program is organized and includes input from the entire work force. Managers participate in the quality improvement teams and also act as advisers to other teams. TQM is a continual activity that must be inculcated in the organizational culture – it is not just a one-shot program. TQM must be known and communicated to all workers.

2.       The key to an effective TQM program must be directed to customer satisfaction. The best way to start is by satisfying customers. We must always listen to the “voice of the customer” and emphasize design quality and defect prevention. Does it right the first time and every time, for customer satisfaction is the most important commitment.

3.       TQM is an organization-wide challenge that is everyone’s responsibility. All workers must be trained in TQM, Statistical Process Control (SPC), and other appropriate quality improvement skills so they can effectively participate in project teams. Including internal customers and, for that matter, internal suppliers in project teams are excellent approach. Those affected by the plan must be involved in its development and implementation. They should understand the process better than anyone else. Changing behavior is the goal. People must come to work not only to their jobs but also to think about how to improve their jobs. Personnel must be empowered to perform processes in an optimum manner at the lowest possible level.

4.       There must be continuous improvement of all business and production process. Quality improvement projects, such as on-time delivery, order entry efficiency, billing error rate, customer satisfaction, scrap reduction, and supplier management, are good things to start. Technical techniques such as SPC, concurrent engineering, benchmarking, quality function development, ISO 9000, and Taguchi’s quality design are excellent for problem solving.

5.       A partnering relationship rather than an adversarial one must be developed. Both parties have as much to gain or lose based on the success or failure of the product or services. The focus should be on quality and life cycle cost rather than price. Suppliers should be few in number so that true partnering can happen.

6.       Performance measures such as uptime, percent nonconforming, absenteeism and customer satisfaction should be determined for each function area. These measures should be posted to everyone to see. Quantitative data are necessary to measure the continuous quality improvement output.

The purpose of TQM is to provide a quality product or service to customer, which will in turn, increase productivity and lower cost. With a higher quality product and service and lower price, competitive position in the market place will be enhanced. These series of events will allow the business organization to achieve the objectives of profit and growth with the great ease. Furthermore, the workers will have the security, which will create a satisfying environment to work.

Definition of TQM

Definition of Total Quality Management (TQM)

                It is an improvement to the tradition way of doing business. It is a proven technique to guarantee survival amidst world-class competition. Only by changing the actions of management will the culture and actions of an entire organization be transformed. TQM is for the most part common sense, as stated by D.H. Besterfield.

Analyzing the three words, such as:

Total-                Made up of the whole

Quality-            Degree of excellence a product or services provides.

Management-   Act, art or manner of handling, controlling, directing etc.

Therefore, TQM is the art of managing the whole to achieve excellence. The golden rule is a simple but effective way to explain it:

“Do unto others as you would have them do unto you” a positive way of golden rule.

TQM is defined as both philosophy and a set of principles that direst the foundation of a continuously improving business organization. It is the application of qualitative methods to improve all processes within a business organization and exceed customer needs now and in the future.

TQM includes fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach.

Foundation of TQM

Historical Background of TQM

The Historical Background of quality control is as old as business industry itself. In the middle Ages, Quality was controlled by the long periods of training required by the guilds. This training instilled pride and dignity of workers for quality of a given product.

The concept of specialization of work was introduced during the industrial revolution. As a result, a worker no longer made the whole product; instead he made a part only. This paradigm shift brought a decline in workmanship. Because productivity improved, there was a decreased in cost. As products became more complicated and jobs more specialized, it became necessary to inspect products after production.

In 1924, W.A. Shewhart of Bell telephone laboratories developed a statistical chart for control of product variables. This chart is considered to be the beginning of statistical quality control. Later in the same decade, H.F. Dodge and H.G. Romig, both of Bell telephone Laboratories, developed the idea of acceptance sampling as a substitute for 100% inspection. Recognition of the value of the statistical quality control became apparent by 1924. Unfortunately, U.S. managers failed to determine its value.

In 1946, the American Society for Quality Control was organized. This organization, through its publications, conferences and training activities, has promoted the use of quality control for all types of production and service.

In 1950, W. Edwards Deming, who studied statistical quality control from Shewhart, gave a series of lectures on Statistical methods of Japanese engineers and on Quality responsibility to the CEOs of the largest organizations in Japan, Joseph M. Juran made his first trip on Japan 1954 and further emphasized management’s responsibility to successful attain quality. Using these concepts the Japanese set the quality standards for the rest of the world to follow.

In 1960, the first quality control circles were organized for the purpose of quality improvement. Simple statistcal techniques were learned and applied by Japanese workers.

By the late 1970s and early 1980s, U.S. managers were making frequent trips to Japan to learn about the Japanese miracle. These trips were really not necessary – they could have read the writings of Juran and Demings.

The importance of quality continued in the car manufacturing industry in the 1990s when the Saturn Automobile ranked third in the CUSTOMERS SATISFACTION behind the most expensive Japanese Automobiles. In Addition, ISO 9000 (Q9000 for the United States) became the worldwide model for a quality system.