The 8 Principles of Total Quality Management (TQM)

Summary

The presentation focuses on the principles of Total Quality Management (TQM), emphasizing the importance of customer focus, leadership, process approach, people involvement, systematic approach to management, continual improvement, factual approach to decision making, and mutually beneficial supplier relationships. It highlights how these principles can lead to increased sales, revenue, customer loyalty, and business efficiency, with real-world examples provided to illustrate their application and impact.

Takeaways

• 📈 Total Quality Management (TQM) is a management technique that involves all employees in continuously improving their ability to provide valuable products and services.
• 👥 The first principle of TQM is customer focus, emphasizing the importance of understanding and meeting customer needs and expectations to ensure business survival.
• 🏆 Leadership plays a critical role in TQM by creating a progressive business environment and ensuring the organization's objectives align with customer needs.
• 🔄 Process approach in TQM involves adhering to processes that ensure consistency and efficiency, streamlining business operations.
• 👷‍♂️ People involvement is key to TQM's success, as it requires the total commitment of employees to increase productivity and sales.
• 🔄 Continual improvement is a core principle of TQM, pushing businesses to always strive for better services, products, and processes.
• 📊 Factual approach to decision making is crucial in TQM, requiring decisions to be based on rational analysis of data for informed choices.
• 🤝 Mutually beneficial supplier relationships are essential for creating value and increasing capacity for both the organization and its suppliers.
• 📚 Systematic approach to management is linked to process approach, emphasizing the importance of a clear system to manage and streamline business processes.
• 🏥 The principles of TQM are applicable across various industries, including healthcare, where continual learning and improvement are vital for evolving fields.

Q & A

What is Total Quality Management (TQM)?

Total Quality Management is a management technique based on the idea that all employees continuously improve their ability to provide on-demand products and services that customers will find of particular value.

What are the eight principles of Total Quality Management?

The eight principles of TQM are: leadership, customer focus, process approach, involvement of people, system approach, continuous improvement, factual approach to decision making, and mutual beneficial supplier relationships.

Why is customer focus considered the most important principle of TQM?

Customer focus is the most important principle because without customers, there would be no business. Organizations should strive to understand their customers to better meet their requirements and expectations.

How can an organization implement the customer focus principle?

An organization can implement the customer focus principle by doing research to understand customer needs, aligning objectives with customer needs, communicating with customers, mastering satisfaction, and managing customer relationships.

What are the benefits of applying the customer focus principle?

Applying the customer focus principle can lead to increased sales, revenue, market share, and customer loyalty. It also increases the possibility of repeat business and positive word-of-mouth advertising.

What role does leadership play in TQM?

Leadership is responsible for creating a productive and progressive business environment. They ensure the future hires maintain the atmosphere and implement the vision for the business.

How can an organization implement the process approach principle?

An organization can implement the process approach principle by using TQM tools like process flowcharts, creating a visual action plan, analyzing and measuring current activities, and evaluating the impact of processes on customers and stakeholders.

What is the significance of involving people in TQM?

Involving people is key to success in TQM because it increases productivity, processes, and sales with the total commitment of employees. It also fosters employee retention, innovation, and problem-solving.

How does the systematic approach to management relate to the process approach?

The systematic approach to management is linked to the process approach as it argues that identifying, understanding, and managing processes using a clear system will help streamline the business and ensure that team members are dedicating the right amount of attention to key tasks.

Why is continuous improvement important in TQM?

Continuous improvement is important because it ensures that a business is always pushing for improvements in services or products to stay competitive and meet customer needs.

How does the factual approach to decision making differ from other decision-making styles?

The factual approach to decision making is based on rational analysis of data. Decision-makers take time to compile data and evidence before coming up with a solution, making them careful and adaptive thinkers.

What is the importance of mutually beneficial supplier relationships in TQM?

Mutually beneficial supplier relationships enhance the ability of both the organization and its suppliers to create value. It allows for a more flexible response to customer demands and ensures a steady supply of necessary equipment and materials.