What is total quality management?
The term quality may simply be defined
as providing customers with products and services that meet their
needs in an effective manner. TQM focuses on customer satisfaction.
The three words that make up this concept—"total,"
"quality," and "management"—are discussed
separately below.
Total
This calls for the involvement of all
the aspects of the organization in satisfying the customer, a goal
that can only be accomplished if the usefulness is recognized of
having partnership environment at each stage of the business process
both within and outside the organization, as applicable. With respect
to the outside stage of the business process, the important critical
factors for a successful supplier-customer relationship are
1. Development of a customer-supplier
relationship based on mutual trust, respect, and benefit
2. Development of in-house requirements
by customers
3. Customers making suppliers clearly
understand their requirements
4. Customers selecting their potential
suppliers with mechanisms in place to achieve zero defects
5. Regular monitoring of suppliers'
processes and products by the customers
Quality
Any company or organization in pursuit
of TQM must define the term quality clearly and precisely. It may be
said that quality is deceptively simple but endlessly complicated,
and numerous definitions have been proposed, such as "quality =
people + attitude"; "providing error-free products and
services to customers on time"; and "satisfying the
requirements and expectations of customers".
Another definition is offered here:
"quality means providing both external and internal customers
with innovative goods and services that meet their needs
effectively." This definition has three important dimensions:
1. It focuses on satisfying the needs
of customers
2. Organizations using this definition
provide both products and services, which jointly determine the
customer's perception of the company in question
3. The concerned companies have both
external and internal customers
According to a survey reported in Ref.
1, 82% of the definitions indicated that quality is defined by the
customer, not by the supplier. The top five quality measures
identified by the respondents were customer feedback (22.92%),
customer complaints (16.67%), net profits (10.42%), returning
customers (10.42%), and product defects (8.33%).
Management
The approach to management is
instrumental in determining companies' ability to attain corporate
goals and allocate resources effectively. TQM calls for a radical
change in involving employees in company decision-making, as their
contribution and participation are vital to orienting all areas of
business in providing quality products to customers.
It must be remembered that over the
years the Fortune 1000 companies in the United States have reported
such benefits of employee-involvement as increased employee trust in
management, improved product quality, improved employee safety/
health, increase in productivity, improved management
decision-making, increased worker satisfaction, improvement in
employee quality of work life, improved union-management relations,
improved implementation of technology, improved organization
processes, eliminated layers of management, and better customer
service.
Companies considering the introduction
of TQM will have to see their employees in a new way, for the change
in management philosophy needed to truly manage total quality is
nothing short of dramatic. Furthermore, it is important that the management infrastructure lay the foundation for involving the entire
workforce in the pursuit of customer satisfaction.
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