What is Total Quality Management - TQM

Summary

Total Quality Management (TQM) is an organizational approach focused on long-term success through customer satisfaction, continuous improvement, and employee involvement. Rooted in 1920s statistical quality control, TQM has evolved into principles like customer focus, process-centric management, and fact-based decision-making. It promotes cross-functional collaboration, data-driven problem solving, and process improvement to enhance quality and build a customer-focused culture. TQM's ultimate goal is delivering consistent value to customers by improving every aspect of the business, from products to processes, while fostering a blame-free, quality-driven environment across the organization.

Takeaways

• 📚 TQM stands for Total Quality Management, an approach used by organizations to achieve long-term success by focusing on quality goods and services.
• 🌐 TQM's roots date back to the 1920s with Walter Shewhart's statistical methods, further developed by W. Edwards Deming in post-WWII Japan.
• 🌿 TQM principles have influenced modern methodologies such as Lean, Operational Excellence, Agile, ISO, and Six Sigma.
• 💡 The core of TQM is built on eight principles: customer focus, employee involvement, process-centered approach, systems integration, strategic planning, fact-based decision-making, effective communication, and continuous improvement.
• 🔍 TQM emphasizes a customer-centric approach, where customer feedback is crucial for developing and enhancing products and services.
• 🛠️ A key belief in TQM is that system and process failures, not people, lead to poor quality outcomes, hence the focus on process improvement.
• 📊 TQM is data-driven, relying on statistical process control and fact-based decision-making for quality management and improvement.
• 🔄 The Plan-Do-Check-Act (PDCA) cycle and seven quality control tools are integral to TQM's continuous improvement practices.
• 👥 Total involvement is a cornerstone of TQM, requiring participation from all levels of the organization to drive quality improvement.
• 🔧 TQM is not just a set of practices but also a strategic approach that integrates with the business strategy and involves change management and clear communication.

Q & A

What is Total Quality Management (TQM)?

Total Quality Management (TQM) is an approach used by organizations to achieve long-term success by developing people and processes that can deliver the highest level of quality goods and services to customers.

What is the historical background of TQM?

TQM has roots dating back to the 1920s when Walter Shewhart applied statistics to quality control in industrial processes. His student, W. Edwards Deming, further developed these ideas in post-World War II Japan in the late 1940s and 1950s.

What are the eight principles of TQM?

The eight principles of TQM are: customer focus, employee involvement, being process-centered, integrating systems across the extended enterprise, strategic approach, fact-based decision-making, effective communication, and continuous improvement.

How does TQM contribute to productivity improvement?

TQM contributes to productivity improvement by preventing errors and problems, faster problem-solving, improved supplier relationships, reducing total costs of quality, and recognizing and reducing risk.

What is the significance of customer focus in TQM?

Customer focus in TQM is significant because it believes that an organization's success is based on delivering quality products, services, or experiences to the customer. TQM aims to not only meet but also exceed customer quality requirements using feedback for continuous improvement.

How does TQM view the role of systems and processes in quality outcomes?

TQM believes that when there is a poor quality outcome, it is the systems and processes, not the people, that are at fault. Therefore, the focus is on building and improving processes that anyone can perform to provide value to the customer repeatedly and reliably.

What is the process-centric principle of TQM?

The process-centric principle of TQM involves defining how work is done, identifying what it takes to deliver good quality, and maintaining standards. It also encourages everyone to pay attention to how work is done and continuously look for ways to make it easier, better, and faster.

How does TQM use data and analytics?

TQM is a scientific approach to management that relies on data for tracking business performance, collecting customer feedback, and experimentation. Good decision-making in TQM is based on using facts and data to understand the situation rather than relying on feelings and opinions.

What is the role of management in TQM?

Management plays a direct role in TQM activities through cross-functional improvement efforts and by creating an environment that supports engagement at all levels. They are responsible for providing training, encouraging improvement ideas, and leading by example with fact-based decision-making.

How does TQM integrate with the overall business strategy?

TQM must be used to achieve the business strategy, with objectives tied to the overall strategy. A common practice for a strategic approach is hoshin planning or strategy deployment, which breaks down larger objectives into smaller ones at each organizational level, integrating and aligning efforts.

What does the term 'total' in TQM signify?

In TQM, the term 'total' signifies three meanings: total involvement, where continuous improvement and quality management are part of every person's job; a focus on quality improvement across all parts of the enterprise; and total commitment from leadership to quality, which includes setting goals, providing training, and improving their own management processes.

Outlines

00:00

📚 Introduction to Total Quality Management (TQM)

Total Quality Management (TQM) is a strategic approach used by organizations to achieve long-term success by focusing on delivering high-quality goods and services. Originating from the 1920s with Walter Shewhart's application of statistics to quality control, TQM was further developed by W. Edwards Deming in post-WWII Japan. The approach emphasizes eight core principles: customer focus, employee involvement, process-centered activities, system integration, strategic planning, fact-based decision-making, effective communication, and continuous improvement. TQM is not just about meeting customer quality requirements but also about using feedback for product and service development, aiming to provide a superior customer experience. The approach views poor quality outcomes as systemic issues rather than individual faults, advocating for process improvement to ensure consistent and reliable value delivery to customers.

05:01

🔍 Deep Dive into TQM Principles and Practices

TQM is supported by a set of proven practices and tools, including the Plan-Do-Check-Act (PDCA) cycle for problem-solving and the seven quality control tools for data analysis. It often involves cross-functional teams addressing both immediate and long-term challenges, with management playing a direct role in these activities. TQM is designed to instill a culture of continuous improvement, where everyone seeks safer, easier, and better ways to work. It must align with the business strategy, often using Hoshin planning for strategy deployment, breaking down larger objectives into smaller, manageable ones across different organizational levels. TQM views the business as a system of interrelated processes, extending to suppliers and customers for long-term relationships. It emphasizes total involvement, with everyone at all levels contributing to process improvement, and leadership commitment to quality, including setting goals, providing training, and fostering a blame-free culture.

10:01

🏁 Conclusion and Summary of TQM

The final paragraph wraps up the discussion on TQM, highlighting that any management approach embracing the principles of total involvement, continuous improvement, and quality management across all parts of an enterprise can be considered a TQM system. It underscores the importance of leadership commitment to not only setting goals but also practicing TQM to improve their own management processes. The paragraph concludes the review of TQM, indicating that while organizations may have different definitions and methods, the core ideas of TQM remain consistent.

Keywords

💡Total Quality Management (TQM)

Total Quality Management (TQM) is a comprehensive and structured approach used by organizations to achieve long-term success by ensuring that all processes, goods, and services adhere to the highest quality standards. In the video, TQM is described as developing people and processes capable of delivering the highest level of quality to customers. It is rooted in historical developments like Walter Shewhart's statistical methods and W. Edwards Deming's work in post-WWII Japan, which have since been adopted globally.

💡Customer Focus

Customer Focus is a core principle of TQM that emphasizes understanding and meeting customer needs as the driving force behind quality improvement. The video script highlights that TQM starts with focusing on the customer's experience and believes that an organization's success is based on delivering quality products, services, or experiences to the customer. It also mentions that TQM uses customer feedback to develop and improve offerings.

💡Process-Centered

Being process-centered in TQM means that organizations focus on defining, measuring, and improving the processes that create value for customers. The script explains that this principle involves looking at how processes are interconnected in a system or value chain, and it is not just about individual tasks but also about integrating and optimizing the whole system.

💡Continuous Improvement

Continuous Improvement is a fundamental aspect of TQM that involves ongoing efforts to enhance processes, products, and services. The video mentions that TQM encourages everyone to pay attention to how work is done and to continuously look for ways to make it easier, better, and faster. This is often achieved through the Plan-Do-Check-Act (PDCA) cycle and other quality improvement practices.

💡Fact-Based Decision Making

Fact-Based Decision Making is the practice of using data and evidence to guide strategic and operational decisions within an organization. The script explains that TQM is a scientific approach to management that relies on data for tracking business performance, collecting customer feedback, and ensuring that strategies are effective. Good decision-making in TQM is based on using facts and data to understand situations rather than relying on feelings and opinions.

💡Strategic Approach

A strategic approach in TQM refers to aligning quality management activities with the organization's overall strategy and goals. The video script mentions that TQM must be used to achieve the business strategy, and objectives must be tied to the overall strategy. This includes practices like hoshin planning, which breaks down larger objectives into smaller ones at each organizational level.

💡Employee Involvement

Employee Involvement is the principle that all members of an organization should be engaged in quality improvement efforts. The script states that TQM involves everyone at all departments in customer-focused, process-centered improvement activities, with the goal of providing customers with excellent goods, services, and experiences.

💡Communication

Effective Communication is essential for the successful implementation of TQM, as it ensures that everyone in the organization understands the goals, plans, and expectations. The video script emphasizes that leadership must communicate the key points of the TQM plan clearly and frequently, using the 5W and 1H method to deepen understanding and engagement with all stakeholders.

💡Lean

Lean is a management philosophy derived from TQM that focuses on minimizing waste and optimizing processes to maximize value for the customer. The script mentions that the roots of lean can be found in TQM, indicating that both approaches share a focus on efficiency and quality.

💡Six Sigma

Six Sigma is a set of techniques and tools for process improvement that aims to reduce defects and variability in processes. The video script connects Six Sigma to TQM by stating that the roots of Six Sigma can be found in TQM, suggesting that both methodologies are concerned with improving process quality and reducing errors.

Highlights

TQM is an approach for organizations to achieve long-term success by developing high-quality goods and services.

TQM's roots date back to the 1920s with Walter Shewhart's application of statistics to quality control.

W. Edwards Deming further developed TQM in post-WWII Japan, influencing many global organizations.

TQM principles include customer focus, employee involvement, and process-centered thinking.

TQM is based on strategic planning, fact-based decision-making, and effective communication.

Benefits of TQM include productivity improvement, error prevention, and faster problem solving.

TQM fosters a customer-centric design of new processes, products, and services.

TQM principles help build a strong organizational culture focused on quality.

TQM is organized around eight principles supported by proven practices and tools.

The starting point for TQM is focusing on the customer's experience to drive quality.

TQM believes that system and process improvements, not blame, are key to quality outcomes.

TQM encourages quantifying success and defining steps to achieve it for successful implementation.

The process-centric principle of TQM emphasizes interconnected processes and system optimization.

TQM uses data and analytics for fact-based decision making and strategy validation.

TQM employs the PDCA cycle and seven quality control tools for problem-solving and data analysis.

Management involvement is crucial in TQM, with a focus on cross-functional improvement efforts.

TQM must align with business strategy, using hoshin planning for strategic deployment.

TQM requires total involvement from all levels of the organization for process improvement.

Leadership in TQM must communicate the strategy and engage stakeholders for a successful implementation.

TQM's 'total' aspect signifies total involvement, comprehensive quality focus, and leadership commitment.

Transcripts

hi and welcome

tqm or total quality management is an

approach organizations use to achieve

long-term success

tqm does this by developing people and

processes capable of delivering the

highest level of quality goods and

services to customers

tqm has routes that go back to the 1920s

when walter shoehart applied statistics

to quality control in industrial

processes

his student w edwards deming developed

shoehart's ideas in post-world war ii

japan in the late 1940s and 1950s

many organizations worldwide have

studied and adopted the quality and

productivity methods of tqm since then

we can find the roots of lean

operational excellence agile iso and six

sigma in tqm

today organizations approach tqm in

different ways but there is a common set

of principles and practices

the eight principles of tqm are

customer focus

employee involvement being process

centered and integrating systems across

the extended enterprise

in addition tqm is based on a strategic

approach

fact-based decision-making effective

communication and continuous improvement

these principles act as north stars to

help us stay on the right course

the benefits of tqm include but are not

limited to

productivity improvement prevention of

errors and problems

faster problem solving improved supplier

relationships reduce total costs of

quality

recognizing and reducing risk

and customer-centric design of new

processes products and services

additionally practicing tqm principles

helps to build and strengthen the

organization's culture

tqm is organized around a set of eight

principles supported by proven practices

and tools

this enables people to use tqm to take a

strategic approach to integrating the

systems across an enterprise and

developing a customer focused culture

tqm does this through total involvement

in process-centered continuous

improvement while making fact-based

decisions and communicating effectively

the starting point for tqm is to focus

on the customer's experience

tqm believes that the success of an

organization is based on delivering

quality products services or experiences

to the customer

it's the customer who decides what level

of quality they will accept

tqm not only aims to achieve a

customer's quality requirements but uses

feedback to develop and improve the

product and services

gaining an understanding of the customer

provides a long-term competitive

advantage

the tqm belief is that when there's a

poor quality outcome it's the systems

and the processes not the people that

are at fault

therefore in tqm the focus is on

building and improving processes that

anyone can perform to provide value to

the customer repeatedly and reliably

this requires quantifying success and

defining the steps taken to get there

both of which are essential for

successful implementation of tqm

the process-centric principle of tqm

does not mean a narrow focus on

individual process tasks

it's true that the pdca cycle of

experimentation mostly happens at the

process level where daily work is done

however

the process centric principle also

applies to looking at how processes are

interconnected in a system or value

chain

this connects with the idea that the

downstream process is the internal

customer

the tqm approach also considers how to

integrate and optimize the whole system

the process-centric approach begins with

defining how the work is done

identifying what it takes to deliver

good quality and maintaining standards

tqm encourages everyone to pay attention

to how the work is done and continuously

look for ways to make it easier better

and faster

as we build more reliable processes we

measure the key characteristics at each

to establish statistical process control

or spc

this requires the collection and

analysis of data

that brings us to our next principle

which is to make decisions based on

facts and data

tqm is a scientific approach to

management

tracking business performance collecting

customer feedback and experimentation

all rely on data

good decision making is based on using

facts and data to understand the

situation rather than relying on

feelings and opinions

tqm uses data and analytics to ensure

that the strategy is working for the

organization

in tqm people build better processes and

systems by using various quality

improvement practices

this includes the plan do check act or

pdca cycle for problem solving and

experimentation and the seven quality

control tools to collect and analyze

data

people may do this in temporary

cross-functional teams to address

immediate issues or in standing teams to

address long-term challenges

management is directly involved in these

activities as well as through steering

committees

the aim of applying process-centered

data-driven continuous improvement is to

improve quality and the customer

experience

however these principles also help to

instill an organization with a culture

in which everyone constantly seeks new

ways to make work safer easier and

better

for tqm to be effective across the whole

organization it must be used to achieve

the business strategy

while the initial deployment of tqm may

be at a site level or at the

departmental level the objectives must

be tied to the overall strategy

a common practice to enable a strategic

approach is hoshin planning

also called strategy deployment this

approach breaks down larger objectives

into smaller ones at each organizational

level integrating and aligning efforts

strategy deployment as part of tqm

allows people to take ownership not only

of their contribution to the overall

strategic objectives or what to achieve

but also to identify

how they will achieve it

the deployment of tqm must also be

viewed as an integrated system at the

strategic level and at the process level

at the process level as people make

changes across the organization they

must make sure that these build up to

larger processes that deliver value

smoothly to the customer

at the strategic level strategy

deployment and other methods ensure that

the efforts and objectives at each level

are aligned with the company's overall

strategy and goals

together this tqm principle means that

we must understand and manage the

business as a system of interrelated

processes

this thinking begins with the

organization but eventually extends to

include suppliers and customers in

mutually beneficial long-term

relationships

another fundamental principle of tqm is

total involvement in building and

continuously improving capable processes

the people who do the work contribute

their ideas and knowledge for how to

make the quality better

tqm involves everyone at all departments

in customer focused process-centered

improvement activity

the goal is to provide customers with

excellent goods services and experiences

from every level of the organization

management at all levels gets involved

through their own cross-functional

improvement efforts

additionally management is responsible

for creating an environment that

supports engagement at all levels

this includes providing training

encouraging improvement ideas from teams

and individuals and measuring and

recognizing the progress of improvement

teams

it also involves leading by example by

embracing fact-based decision-making and

creating a process-censored blame-free

culture

as an organization-wide long-term effort

to improve every process tqm requires a

large amount of change management

this is based on clear frequent and

strong communication across the

organization this is the eighth and

final principle of tqm

at a minimum leaders must communicate

the key points of the plan in terms of

the 5w and 1h such as why are we doing

tqm

what is the plan what will change

when will tqm come to my team

how will we measure success

what is expected of me

and where will we start

leadership must create a communication

strategy and engage in conversations to

deepen understanding and engagement with

all key stakeholders

based on these eight principles and

their supporting practices we can see

that the word total in tqm has three

meanings

first it means total involvement

continuous improvement and quality

management are part of every person's

job

second in tqm the focus of quality

improvement must go beyond the services

and products

quality improvement efforts apply to all

parts of an enterprise

this includes but is not limited to how

we design

develop

market produce deliver

and support our goods and services

third in tqm the leadership is totally

committed to quality

this requires goal setting training

funding and direction

but more importantly leaders must

practice tqm to improve the quality of

their own management processes and

systems

although organizations may use different

definitions of tqm principles and

methods

we can say that any management approach

that embraces these ideas is a total

quality management system

that wraps up our review of tqm

we'll see you soon