What is Total Quality management (TQM)? | 7 Principles of Total Quality Management

Educationleaves

26 Aug 202107:27

Summary

TLDRThis video delves into Total Quality Management (TQM), a structured approach to enhance organizational outputs through continuous improvement. Originated in the 1950s by William Deming, TQM emphasizes seven core principles, including customer focus, employee involvement, and process-centered thinking. It advocates for an integrated system, fact-based decision-making, and strategic planning, fostering a culture of communication and quality. The video outlines TQM's benefits, such as defect reduction, increased productivity, cost savings, and heightened customer satisfaction, while also acknowledging potential challenges like the initial training period and resistance to change.

Takeaways

📚 Total Quality Management (TQM) is a structured approach for overall organizational management focused on improving the quality of outputs, including goods and services.
🌟 TQM originated in the 1950s and was developed by William Deming, a management consultant whose work significantly influenced Japanese manufacturing.
🔍 The term 'total' in TQM signifies the involvement of the entire organization, including all departments and functions in quality management.
🔑 TQM involves a continuous process of detecting and reducing errors, streamlining supply chain management, improving customer experience, and ensuring employee training.
👥 Principle 1: Customer Focus - Customer feedback is crucial in determining the level of quality and driving quality improvement efforts.
🤝 Principle 2: Total Employee Involvement - All employees must be engaged in working towards common goals, with an environment that fosters empowerment and continuous improvement.
🔄 Principle 3: Process Centered - TQM emphasizes process thinking, defining steps to transform inputs into outputs and monitoring performance to detect variations.
🛠️ Principle 4: Integrated System - An organization should have a system that provides effective TQM, possibly based on a quality standard like ISO 9001.
📊 Principle 5: Decision Making Based on Facts - TQM requires the collection and analysis of performance data to improve decision-making accuracy.
🎯 Principle 6: Strategic and Systematic Approach - TQM includes strategic planning that integrates quality as a core component to achieve organizational goals.
🗣️ Principle 7: Communication - Effective communication is vital during operations and organizational change to maintain morale and motivate employees.
💡 Advantage: Defect Reduction - TQM improves quality within processes, reducing the need for quality assurance personnel and time spent fixing errors.
📈 Advantage: Productivity Improvement - With fewer errors, employees spend less time correcting them, leading to increased output and often profits.
💰 Advantage: Cost Reduction - Consistent implementation of TQM can reduce costs due to fewer product defects, saving on customer support and product fixes.
👍 Advantage: Customer Satisfaction - Improved products and services with error-free interactions lead to higher customer satisfaction and potentially increased market share.
😊 Advantage: Improve Employee Morale - The success of TQM can enhance employee morale, reducing turnover and associated hiring and training costs.
⏳ Disadvantage: Training Period - TQM requires extensive training, which can temporarily affect costs as employees are taken away from their usual work.
😓 Disadvantage: Resistance to Change - TQM's incremental changes may face resistance from employees who prefer the current system or fear job loss.

Q & A

What is Total Quality Management (TQM)?
-Total Quality Management (TQM) is a structured approach to overall organizational management aimed at improving the quality of an organization's outputs, including goods and services, through the continual improvement of internal practices.
Who developed the concept of TQM?
-The concept of TQM was developed by William Deming, a management consultant whose work had a significant impact on Japanese manufacturing in the 1950s.
What does the term 'total' in TQM signify?
-The term 'total' in TQM signifies that all parties, departments, and functions within an organization are involved in quality management.
What are the seven principles of TQM?
-The seven principles of TQM are: 1) Customer-focused, 2) Total employee involvement, 3) Process-centered, 4) Integrated system, 5) Decision making based on facts, 6) Strategic and systematic approach, and 7) Communication.
How does TQM focus on the customer?
-TQM focuses on the customer by using their feedback to determine the level of quality and ensuring that customer satisfaction is at the forefront of all quality improvement efforts.
What is the role of employees in TQM?
-In TQM, all employees are involved in working towards common goals, and total employee engagement is achieved when they are empowered and when management creates a conducive environment for continuous improvement.
Why is process thinking important in TQM?
-Process thinking is important in TQM because it involves a series of steps that transform inputs from suppliers into outputs for customers. Continuously monitoring performance measures helps detect unexpected variation and improve the process.
What is an integrated system in the context of TQM?
-An integrated system in TQM is a cohesive framework that provides effective total quality management across all functions and divisions of an organization, which may be based on a quality standard such as ISO 9001.
How does TQM approach decision making?
-TQM approaches decision making by requiring organizations to frequently collect and analyze data on performance measures to improve the accuracy and effectiveness of decision-making.
What are some advantages of implementing TQM?
-Advantages of TQM include defect reduction, productivity improvement, cost reduction, increased customer satisfaction, and improved employee morale.
What challenges might organizations face when implementing TQM?
-Challenges in implementing TQM include the need for considerable employee training, potential negative reactions from employees who prefer the current system or fear job loss due to incremental changes.
How does TQM contribute to employee morale and turnover?
-TQM contributes to improved employee morale through ongoing success and involvement in quality improvement, which in turn can reduce employee turnover and associated hiring and training costs.
What is the significance of communication in TQM?
-Communication is significant in TQM as it plays a crucial role in maintaining morale and motivating employees during day-to-day operations and times of organizational change, involving strategies, practice, and timeliness.

Outlines

00:00

📚 Introduction to Total Quality Management (TQM)

This paragraph introduces the concept of Total Quality Management (TQM) as a structured approach to enhance an organization's outputs, including goods and services, by focusing on continual improvement of internal practices. TQM was developed in the 1950s by William Deming, a management consultant who significantly influenced Japanese manufacturing. The paragraph outlines the definition of TQM, its origin, and its role in engaging all parts of an organization in quality management. It also sets the stage for discussing the seven principles of TQM, starting with customer focus and moving towards a strategic and systematic approach, with an emphasis on effective communication.

05:00

🚀 The Seven Principles and Benefits of TQM

This paragraph delves into the seven core principles of TQM, which include customer focus, total employee involvement, process-centered thinking, an integrated system, decision-making based on facts, a strategic and systematic approach, and effective communication. It highlights how these principles contribute to the overall success of TQM initiatives. The paragraph also lists the advantages of TQM, such as defect reduction, productivity improvement, cost reduction, increased customer satisfaction, and improved employee morale. Additionally, it acknowledges the potential disadvantages, such as the need for extensive training and possible resistance from employees who may feel threatened by changes in the system.

Mindmap

Keywords

💡Total Quality Management (TQM)

Total Quality Management (TQM) is a structured approach to organizational management that aims to improve the quality of an organization's outputs, including goods and services, through continuous improvement of internal practices. In the video, TQM is the central theme, with its principles, advantages, and disadvantages being discussed in detail. For example, TQM is described as a process that involves all parties, departments, and functions within an organization to ensure quality.

💡Continual Improvement

Continual improvement is a core aspect of TQM, emphasizing the ongoing process of detecting and reducing or eliminating errors in manufacturing and other processes. The video script mentions that TQM is 'the continuous process of detecting and reducing or eliminating errors,' highlighting its focus on never-ending enhancement of quality.

💡William Deming

William Deming was a management consultant who developed the concept of TQM and had a significant impact on Japanese manufacturing in the 1950s. His work is foundational to the principles discussed in the video, as he is credited with coining the term 'Total Quality Management.'

💡Customer Focused

Being customer focused is one of the seven principles of TQM. It means that the customer's feedback is crucial in determining the level of quality. The script states that 'the customer controls whether the efforts were important,' indicating that customer satisfaction is the ultimate goal of TQM practices.

💡Total Employee Involvement

Total employee involvement is another principle of TQM, where all employees participate in working toward common goals. The script mentions that this can only be achieved 'after they have moved fear from the organization when employee empowerment has occurred,' emphasizing the importance of an empowered and engaged workforce.

💡Process Centered

Process centered is a fundamental part of TQM that focuses on process thinking. The script describes a process as 'a series of steps that take inputs from suppliers and transform them into outputs that are delivered to customers.' This principle is about defining and continuously monitoring these steps to ensure quality.

💡Integrated System

An integrated system is necessary for effective TQM, as mentioned in the script. It should be understood and applied across all functions and divisions of the organization, possibly based on a quality standard like ISO 9001. This system ensures that TQM practices are cohesive and consistent throughout the organization.

💡Decision Making Based on Facts

This principle of TQM requires organizations to base their decisions on factual data and performance measures. The script states that TQM 'requires that an organization frequently collect and analyze data in order to improve decision-making accuracy,' which underscores the importance of data-driven decision-making in TQM.

💡Strategic and Systematic Approach

A strategic and systematic approach is a significant part of managing quality within TQM. The script describes this as 'the strategic or systematic approach to achieving an organizational goal,' which includes the formation of a strategic plan with quality as a core component.

💡Communication

Effective communication is vital during day-to-day operations and times of organizational change in TQM. The script highlights its role in 'maintaining morale and motivating employees at all levels,' and emphasizes the importance of strategies, practice, and timeliness in communication.

💡Quality Practices

Quality practices are the methods and techniques used to ensure quality in an organization. The script poses a question about when quality practices must be carried out, with options including 'at the start of the project,' 'throughout the life of the project,' or 'at the end of the project,' suggesting that quality should be a consistent focus at all stages.

Highlights

Total Quality Management (TQM) is a structured approach to overall organizational management focused on improving the quality of an organization's outputs.

TQM was developed in the 1950s by William Deming, a management consultant whose work greatly impacted Japanese manufacturing.

The term 'total' in TQM signifies the involvement of the entire organization, including all departments and functions in quality management.

TQM involves continuous detection and reduction or elimination of errors in manufacturing and supply chain management, as well as improving customer experience and employee training.

The first principle of TQM is customer focus, where customer feedback determines the level of quality.

Total employee involvement is key, where all employees work towards common goals and are empowered to contribute to quality improvement.

TQM emphasizes process-centered thinking, where processes are defined and continuously monitored for performance measures.

An integrated system is necessary for effective TQM, which may be based on quality standards like ISO 9001.

Factual decision making is crucial in TQM, requiring frequent data collection and analysis to improve decision accuracy.

A strategic and systematic approach is part of TQM for achieving organizational goals, including the formation of a strategic plan with quality as a core component.

Effective communication is vital during day-to-day operations and organizational change for maintaining morale and motivating employees.

TQM can lead to defect reduction, improving quality within processes and reducing the need for quality assurance personnel.

Productivity improvement is an advantage of TQM, as employees spend less time correcting errors, leading to increased output and profits.

Cost reduction can be achieved through TQM due to fewer product defects, saving on customer support, replacements, and fixes.

Higher customer satisfaction is expected with TQM, as better products and services lead to fewer customer objections and potential market share growth.

TQM can improve employee morale, reducing turnover and associated hiring and training costs.

TQM requires considerable training for employees, which can have a short-term negative effect on costs due to time away from usual work.

TQM may face resistance from employees who prefer the current system or fear job loss due to incremental changes.