Total Quality Management – what it is and why you need it
In today’s marketplace, competition is intense and companies need to stand out from the crowd in order to succeed.
There are many factors that determine success: great product, strong branding, competitive price and effective distribution channels all play their part. However, the key determinant of success is consistent, high quality.
Total quality management (TQM) is the management philosophy commonly adopted by successful, market leading companies across the globe to ensure high quality and maintain market edge.
It involves everyone within the company, at all levels and across all departments, being actively engaged in delivering quality products and services that meet or exceed both customer expectations and company objectives.
Total quality management requires a disciplined approach involving the development of detailed policies and procedures to guide the business, supported by the delivery of comprehensive training and instruction to all members of staff.
It also requires clear objectives to be established against which performance can be measured, with any shortfalls being readily identified and remedied using a process of continuous improvement.
Each member of staff must be actively involved and take responsibility for their own inputs. Not only that, more importantly, there must also be a shared, collective responsibility for quality across the entire organisation and it is this synergy that is the key to success.
The Principles of TQM
There are eight key principles of TQM
1 Customer focus
First and foremost is a strong customer focus. Ensuring that the product or service will delight the customer is essential to company success and all members of staff must buy into this concept and recognise it as their key objective. Therefore, knowing what the customer wants and anticipating future needs is critical to TQM.
2 Employee commitment
To successfully implement TQM, all employees must receive appropriate training and sufficient information to fully understand the role they play in achieving the overall company vision and objectives. Creating a supportive environment, where problems can be discussed and resolved, and where successes are acknowledged, is important to building a highly committed team.
3 Integrated system
Companies tend to have departments for specific functions often operating completely separately from one another. In contrast, TQM is based on an integrated system that horizontally interconnects departments, with all staff fully understanding company policies, quality standards, objectives and processes. This integrated system approach strengthens the company and enhances its competitiveness in the marketplace.
4 Process approach
A process approach requires that a specific task is carried out at the proper time to ensure consistency and optimise production efficiency. This approach enhances production cycles, lowers costs and results in higher profits.
5 Strategic and systematic approach
The formulation of a strategic plan, that integrates quality as a core component, is a central tenet of quality management. It serves to place quality at the centre of the company’s vision, mission and goals.
6 Continual improvement
The quest for quality and perfection is a journey not a destination and the company must continually seek ways to improve its processes and amend products and services to better satisfy ever-changing customer requirements.
7 Fact-based decision making
Effective business decisions are based on evidence and facts. Ensuring that information is accurate and reliable is therefore essential to minimise errors caused by poor quality data.
8 Communication and Relationships
Clear communication underpins all elements of the TQM system. Everyone within the company needs to be made aware of and understand the business strategy, plans and objectives and how these are to be realised.
Successful implementation of TQM requires time, effort, willingness to change and there are significant costs involved, particularly in the short term.
However, the long term benefits are clear. Operating a TQM system will improve quality across all departments and processes of the company and this transmits through to the marketplace with enhanced customer satisfaction, increased revenue and ultimately improved market share.