Total Quality Management

Total Quality Management
IntroductionTotal Quality Management (TQM) designates a management approach and philosophy for achieving sustained success through customer satisfaction. This philosophy requires that organizations put appropriate measures in place to improve the quality of processes, services and products. At its basic level, total quality management relies on certain fundamental principles to integrate quality into the activities and cultures of organizations. The aim is to explore the fundamental principles of TQM and show how they are used to foster improved performance in organizations. The paper comprises of three main parts. The first part highlights the fundamentals principles favored by the authors of the assigned course text. This section also explains how other competing theories and principles have impacted managerial practices in the past ten years. The second part describes how leading organizations in the world have achieved success by using enhanced practices of quality management. This part has also discussed how those principles have been used in the selected successful organizations. The last section goes on to discuss how some of the principles have impacted the organization I work for.
Discussion of the fundamental principles of total quality and performance management favored by the authorsThe principles of total quality and performance management refer to the various strategies for managing organizations to achieve high levels of excellence. As such, the primary focus of these principles is the gradual improvement of performance for the long-term growth and success of organizations.

In their book, Evans and Lindsay (2012) have argued in favor of several fundamental principles of performance and total quality management. One of the principles that appear to be favored highly by the authors is customer focus. This principle emphasizes the need for organizations to enhance capacity for understanding and meeting customer expectations as the basis for total quality management. The principle offers many benefits such as the provision of reliable information about future market orientations, the creation of favorable conditions for enhancing customer loyalty, and management of client relationships.
According to Sahu (2009), successful organizations conduct routine market research to determine current and future customer needs. The findings of these studies are translated into specifications reflected in product quality. In most cases, knowledge of customers’ expectations is obtained through market research done on an organization’s customers, the public, and even competitor’s customers. Where the customers of an organization are other organizations, the research is extended to the end consumers. Best practices dictate that a list should be drawn showing the expectations expressed by customers and a level of importance attached to each expectation. This makes it easier to determine appropriate technologies and processes that should be put in place to meet the customers’ needs.
Another fundamental principle favored by Evans and Lindsay (2012) is leadership focus. This principle emphasizes the need for members of an organization’s senior management to be involved in the process of implementing an integrated approach to total quality and performance management. Essentially, organizational leaders are responsible for implementing any major plans. Therefore, their participation in quality and performance management is indispensable. As explained by Jain (2001), leaders motivate employees to support quality management initiatives by operationalizing the various principles underlying quality. Leaders not only formulate vision and strategy for quality management but also monitor the realization of stated quality objectives. In simple terms, leaders establish the purpose of quality management plans, allocate resources to the plans and motivate all stakeholders to implement the plans. A key benefit of the leadership principle is that it leads to the rapid realization of quality performance objectives. Since the executive management is involved in every step of the quality management process, junior employees get the motivation to support all initiatives. In effect, resistance is eliminated, and objectives are achieved more efficiently. Another benefit is that leaders help in confidence building, which reduces fears and encourages personal contributions.
Another fundamental principle of total quality management that has been favored significantly by the authors is involvement of all employees in decision making. According to Evans and Lindsay (2012), the objective of this principle is the development of the capacity of junior employees to decide and act individually in solving problems in all areas including total quality management. Employees are the most important strategic resource in any organization (Dick, Gallimore & Brown, 2002). Therefore, their skills, knowledge, and experience should be utilized in the realization of total quality objectives. Hence, it is imperative that organizations act through various measures to ensure full motivation of employees to participate in quality improvement.
In order to implement the principle of employee involvement, it is necessary for organizations to create a favorable internal environment based on a culture of equality, teamwork, diversity management and recognition of personal contributions and sacrifices made by employees (Antony, Leung, Knowles & Gosh, 2002). In addition, appropriate training programs should be offered to employees in order to participate effectively in the quality improvement process. Overall, consistent involvement of employees in total quality management initiatives can lead to enhanced performance standards. The results of applying the employee involvement principle can be measured through different quality indicators such as improvements in the cost and quality of labor productivity.
The fundamental principle of the process approach to management has also been given prominence in Evans and Lindsay’s book. According to this principle, the desired goals of total quality management are achieved efficiently when activities and resources are managed as a process. Therefore, the principle requires organizations to systematically define all processes and activities required to achieve organizational goals. It can be noted that the process approach is a fundamental concept underlying various quality standards and methodologies such as the ISO 9000, Six Sigma and the Balanced Scorecard (Sahu, 2009). Each of these methodologies recognizes that any activity that contributes to achieving a specified outcome can be considered a process. The various processes interact with one another to achieve desired outputs. Applying the principle of process approach in quality management leads to the rapid fulfillment of the requirement for continuous improvement, and enables significant gains for the stakeholders. The principle reduces costs, streamlines the quality management process and shortens the implementation process through efficient utilization of resources.
The fundamental principle of systems approach states that different activities and structures in organizations can be approached as subsystems within a wider system. The principle requires a common and coordinated approach to quality management in an organization. Coordination ensures that any good work done by one department can be reciprocated or complemented by another department (Antony et al., 2002). At the centre of the systems approach is the need to align and integrate process to enhance effectiveness and efficiency in the fruition of the quality improvement goals and objectives of an organization. Applying the systems approach principle provides a structured approach for harmonizing overlapping processes and activities. It also facilitates a better understanding of responsibilities and roles within an organization.
The principle of continuous improvement in performance is central to quality management. The principle requires the involvement of all stakeholders in activities aimed at improving the distinctive capabilities of an organization. According to Arumugam, Chang, Ooi and Teh (2009), continual improvement of an organization’s product and service quality, as well as performance is critical to the long-term growth of organizations. The primary benefits of this principle include enhanced organizational flexibility, increased customer loyalty and satisfaction and willingness to make use of technology to improve performance. Jain (2001) has explained that innovation and creativity are critical to the successful implementation of continual improvement policies. Therefore, it is vital for companies to provide appropriate resources and support for employees to participate in continual improvement.
Another equally important principle of total quality is management by facts. This principle is premised on the understanding that any quality management decisions made in organizations must be based on sufficient facts. Facts represent data that has been analyzed and translated into meaningful information to guide the quality management process. Data can be about any aspect of an organization’s operations such as production capacity, marketing efficiency, customer needs, corrective actions, audit reports, customer complaints and non-conforming services and products (Dick et al., 2002). Analysis of factual data based on predetermined procedures reduces risks of making decisions based on subjective and personal opinions. For this goal to be achieved, necessary documents and information parameters should be put in place. In addition, there should be an information management system that interacts freely with the general information system that exists within and outside the organization.
The last major fundamental principle is the establishment of mutually benefitting relationships with suppliers. This principle recognizes suppliers as an important group of stakeholders in total quality management initiatives. The application of this principle in performance and quality management helps both parties to create sustainable value. According to Jain (2001), management quality can be successful if it is tackled right from the supplier’s end. Therefore, companies should be clear about the quality standards that suppliers should adhere to. The process then moves incrementally along the supply chain until the product or service gets to the end consumers. The most common way of cultivating mutual relations with suppliers is by maintaining open and clear channels of communication and by sharing pertinent information with suppliers. In addition, establishing joint plans for quality improvement can go a long way in reinforcing mutual relations with suppliers.
It can be noted that besides the above fundamental principles, a number of competing theories and principles have had an impact on managerial practices over the last decade. These theories include Deming’s theory, Juran’s theory, the Ishikawa theory, Crosby’s theory, Feigenbaum’s theory and the European Foundation for Quality Management framework. Deming’s theory places quality and performance responsibility on organizational leadership. At its core, Deming’s theory of quality management rests on an iterative process of four important activities. The first process is planning, which involves outlining of quality objectives and actions. The next activity is the implementation of quality improvement processes. This is followed by monitoring and assessment of actual quality management objectives against the expected outcomes. The last step involves determining where changes need to be made to improve performance. The last process leads to the initial planning phase. Application of Deming’s principles has been shown to enhance the managerial process especially in terms of quality management.
Crosby’s theory posts that it is justified for organizations to spend huge resources on quality improvement. The theory is based on four quintessential absolutes: quality entails conformance to specific requirements; prevention is the most effective way to achieve quality; nil defects should be the standard for quality, and quality should be measured by the cost of non-conformance. These absolutes require total commitment from management as well as the creation of achievable metrics for measuring the success of quality improvement activity (Arumugam et al., 2009). In addition, the absolutes require the involvement of all stakeholders including suppliers and employees in the quality improvement process. Ishikawa’s theory focuses on seven important tools for quality management. These are cause and effect diagrams; histograms; check sheets; scatter charts; stratification; Pareto analysis and process control charts. These tools are meant to help organizations to understand their quality improvement needs and to implement appropriate strategies and processes to achieve quality. The theory recognizes that each initiative in the quality management process can be pushed a step further to achieve greater standards of quality. As such, the theory encourages organizations to desist from merely focusing on improving product quality and to focus on continued customer service.
Juran’s theory of quality management advocates the concept of the quality trilogy, which entails planning, control, and improvement. According to this competing theory, effective quality management practices require careful planning, controlling and improvement of organizational processes and activities. The theory states that before embarking on quality management process, there should be adequate planning. This involves making decisions on the amount of resources that will be required. After planning, the process is executed, and this requires control measures to be put in place to guarantee that the desired objectives are achieved. Afterward, improvements are made to ensure that the quality management process is sustainable in the long-term. Juran’s theory has been applied successfully across industries and organizations to enhance performance and total quality management (Paton, 2002). Feigenbaum’s theory defines quality management process as a system for integrating quality in the development, maintenance and improvement of various processes within organizations to enable production at efficient levels that foster customer satisfaction. The theory emphasizes leadership, technology, and organizational commitment as critical conditions for effective quality management.
The European Foundation for Quality Management (EFQM) does not prescribe any specific methodology for quality management. Rather, it recognizes a diversity of methodologies based on differences in organizational needs and industry size and structure. The theory requires organizations to conduct self-assessment based on general industry standards to determine their weaknesses and strengths with regard to quality management. The output from the self-assessments can be used as critical inputs for the quality improvement process. Because of its non-prescriptive nature, EFQM is widely used as a basis for national and regional quality standards in Europe. The model’s strength lies in its emphasis on a culture of continuous improvement. The model is useful for quality planning purposes because it establishes links between what an organization does and what it seeks to achieve. A key limitation of the EFQM framework is its lack of accreditation guidelines for quality improvement. As such, this model can be an impediment to total quality management.

Leading World Organizations that have used the Principles of Quality Management SuccessfullyMost of the leading organizations in the world have become successful by embracing enhanced practices of total quality management. The following section explores some of these organizations and how they have been able to achieve success in TQM.
Toyota Motor CorporationToyota is among the leading manufacturers of automobiles in the world. The corporation’s corporate head offices are based in Japan although it operates tens of production plants in different parts of the world. Founded in the 1930s, Toyota has grown into a global brand because of its emphasis on product quality, first class performance and environmental consciousness (Satoshi, 2005). Based on its corporate philosophy of quality and customer first, Toyota has nurtured a culture of total quality management. The company has successfully embraced various principles of quality management such as customer focus, mutually benefiting supplier relations, continuous improvement, systems and process approach to management and involvement of employees in decision making.
As is the case with most organizations, customer focus is at the heart of Toyota’s quality management initiatives. In order to satisfy its customers across the world, Toyota includes all people in the development and implementation of quality control policies. All employees from those in research and development to those in manufacturing and marketing have a role to play in the quality management process (Satoshi, 2005). The company has implemented a policy of strict adherence to established quality standards. Various statistical quality control procedures are used to ascertain the quality of products and services before they get to the consumers. As a way to ensure conformance with quality standards, most of the company’s manufacturing processes are performed by intelligent automation devices, which stop the production line automatically once an error is detected. This ensures that subsequent products are not affected by the errors.
Innovation is central to Toyota’s total quality management process. Toyota was the first car manufacturer to embrace the innovative strategy of lean manufacturing. This strategy focuses on more competent and quicker production processes that lead to minimum wastage and high-quality products. In addition, Toyota pioneered the adoption of smart automation and Just in Time manufacturing in the automobile industry. The success of these quality management practices is evidenced by Toyota’s reputation as a leading manufacturer of high-quality cars that are more fuel efficient, environmentally-friendly, and of unmatched performance. It is for this reason that the sale of Toyota cars is unrivaled in many parts of the world. As a result of the company’s strong culture of quality and performance improvement, Toyota has received numerous prestigious awards such as the Japan Quality Control Award and the Deming Application Award.
AtlantiCareThe ideologies of total quality management have proven indispensable in the health care industry as evidenced by AtlantiCare’s successful journey in quality management. The New Jersey-based integrated healthcare services provider employs more than 5000 employees and operates 25 locations. Due to intense competition in the health care industry and high standards of service quality expected by customers, AtlantiCare had to look for innovative and cost-effective ways of implementing improvements in its operations. Considering that patient satisfaction is the most important indicator of performance in health care, the company found it necessary to initiate a campaign about total quality management involving all employees, business partners, and other stakeholders.
The most significant quality management initiative taken by AtlantiCare is the improvement of communication among its employees and between different departments and office locations. The objective of this initiative was to enhance collaboration among staff by eliminating bureaucracies and eventually reducing customer complaints and waiting times (Evans & Lindsay, 2012). As a means to achieve this objective, the company implemented an innovative communication system where employees could provide feedback and make decisions at any level instead of information flowing from top to bottom. The company has taken further initiatives to ensure that employees understand and embrace its quality policies from the onset. During orientation, new hires receive training in the company’s performance approach. As employees gain experience and rise through ranks, emphasis on quality improvement becomes a key focus so that everybody operates within the company’s strict quality standards.
In accordance with the total quality management practices of continuous improvement and zero defects, AtlantiCare has set quality benchmark goals for all employees, department, and suppliers based on ISO 9000 standards. These goals include better engagement at the point of service delivery, identification and prioritizing of opportunities and increased collaboration between third-party research teams and the company’s staff. The company requires suppliers to deliver high-quality medical products and equipment to facilitate service delivery and customer satisfaction. Through these diverse quality management measures, AtlantiCare’s customer base has grown consistently as does the sales revenue. This has plunged the company into the league of the most respected healthcare providers in the United States.

British AirwaysBritish Airways is the UK’s national carrier. The company flies to more than 500 destinations on six continents and is one of the largest and most diversified airlines in the world (Zou, Oum & 2011). British Airways has achieved immense competitive advantages in the transportation of passengers and cargo. However, the airline faces stiff competition from rival airlines such as Qantas Airways, American Airlines, Deutsche Lufthansa AG and Cathay Pacific. In order to overcome competition and maintain its competitive advantages in the market, British Airways endeavors to differentiate its services through quality improvement. The company’s total quality management philosophy is premised on four fundamental considerations: continuous reduction of costs; provision of excellent customer service; expansion of market through strategic partnerships and alliances; and maximization of returns on flights.
The airline has adopted various quality management methodologies and practices such as zero defects, the Balanced Scorecard, Continuous improvement and Six Sigma to boost its performance. The company’s Board of Directors, line managers and supervisors are responsible for implementing quality management policies and clearing vision for the company (Zou et al., 2011). The goal is to motivate and mobilize employees at all levels to support the airline’s quality improvement initiatives. Since flight safety is the most important quality consideration for airlines, British Airways has taken appropriate steps to promote high standards of passenger safety. These include the use of modern aircraft (mainly Airbus and Boeing) fitted with state of the art navigation technologies. The company has also focused on enhancing efficiency in the booking process and on building good relationships with fuel suppliers to reduce costs.

Apple Inc.
Apple Inc. is a multinational software and electronics manufacturing company headquartered in California, USA. Apple has achieved immense competitive advantages due to its emphasis on product quality and value for customers (Young & Simo, 2005). The company is a global industry leader in the production and marketing of smartphones, tablets, personal computers and selected digital devices. Apple is known for its technological innovations, which have become the industry standards, especially in the personal entertainment industry. Some of the best known Apple products include the iPhone, the iPad, the iPod, MacBook, and iTunes. The company’s products are sold across the world through online stores, third-party wholesalers, direct sales force and value-added resellers.
Apple has implemented a robust total quality management program based on the need to offer memorable customer experience. The company’s quality objectives are to eliminate deficiencies in the product development cycle, minimize misuse of resources, enhance customer satisfaction and achieve high levels of conformance to regulatory requirements (Young & Simo, 2005). Additionally, the company seeks to foster implied customer loyalty and enlarged job safety through TQM. In this regard, the company endeavors to be an industry trendsetter as far as product quality is concerned. Apple’s quality management program is spearheaded by quality development teams, which utilize various methodologies such as six sigma and balanced scorecard to set standards for product and service quality.
In order to achieve total quality management objectives rapidly and efficiently, Apple is organized as multi-tier organizations with lower, middle and upper-level managers. The managers are responsible for implementing quality policies and performance objectives in their respective areas and for creating an enabling work environment where employees feel motivated to perform optimally (Young & Simo, 2005). The company also has staff managers whose work is to support technical line workers. In addition, there are functional line managers who are responsible for promoting quality standards in one area of activity as well as general managers whose responsibility is to coordinate quality issues in complex areas.
Apple values its employees as strategic partners in the quality management process. The company’s employees are empowered to make decisions and give opinions regarding any issue. To make employees work easier, Apple has adopted short chains of command, coupled with wide spans of control and great empowerment and delegation. Apple’s products are of high quality mainly because of the company’s ‘no compromise’ policy. When designing products, Apple creates several mock-ups and prototypes, which are constantly reviewed by teams of designers, researchers, programmers, engineers, marketers, and customers. Information attained from the reviews is used to create an enhanced version of the product. This has made Apple a very successful and popular global brand with unmatched capabilities.
How total quality management principles and practices have the potential to impact my organization (a financial services company)The quality of services is an important consideration in the banking and financial services industry. Studies have shown that corporate success can be reinforced in this industry by implementing innovative and more effective ways of refining the quality of services. I work in a medium-sized financial services company that offers credit facilities to individuals and businesses. The company competes with hundreds of other companies that offer integrated financial services. In an effort to boost its performance, achieve rapid growth and attain competitive advantages in the industry, my organization has adopted the various practices of total quality management as the guiding principles for performance and service delivery.
One of the quality management principles the company has adopted is customer focus. The company is focused on understanding and satisfying the needs of its customers for long-term gains and success. As a way to achieve this objective, the company has a team of well-trained and dedicated customer service representatives who are responsible for interacting with customers to understand their needs and gain insights about quality expectations (Sahu, 2009). The feedback obtained from interactions with customers is used to improve product and service quality. This practice has enabled the company to maintain a good reputation and sustain its profitability despite the actuality of intense competition in the market.
The organization has also adopted the principles of employee involvement and management by facts. The company conducts market intelligence to gather information about industry trends. This information is used to guide the company’s strategic decisions especially with regard to the launch of new products and services. Involvement of employees has made it easier for the company to minimize resistance and cultivate high levels of staff commitment. As a means to ensure seamless delivery of services, the company has integrated its work teams. This has enhanced communication among employees and made it easier for the company to implement organization-wide policies for quality management and performance improvement. Overall, my organization has been able to compete effectively as a result of its sustained focus on service quality.
ConclusionIt is apparent from the preceding discussions that most of the leading organizations in the world have implemented the principle of total quality management to achieve success. In today’s competition-paced markets, applying the principles and practices of TQM is the most effective way through which organizations can meet and exceed the expectations of their customers and other stakeholders. When implemented properly and consistently, this management approach can lead to reduced costs, superior product quality, loyal customers and better organizational performance in all business operations. However, TQM is not a small initiative that any organization can achieve easily. It requires time, realignment of business process, the involvement of stakeholders and commitment of resources.

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