You are on page 1of 5

Total Quality Management (TQM):

A philosophy that involves everyone in an organization for the continuous effort to

improve quality and achieve customer satisfaction.

There are two key philosophies in this approach.

1. Continuous improvement: Never-ending push to improve.

2. Customer satisfaction: meeting or exceeding customer expectations.

TQM approaches as follows:

1. Find out what customers want use of surveys, focus groups, interviews, or
some other technique that integrates the customers voice in the decision-
making process.
2. Design a product or service that will meet (or exceed) what customer want.
Make it easy to use and easy to produce.
3. Design a production process that facilitates doing the job right the rst time.
4. Keep track of results, and use those to guide improvement in the system.
Never stop trying to improve.
5. Extent these concepts to suppliers and to distribution.

A number of other elements of TQM are important:

1. Continual improvement: Philosophy that seeks to make never-ending

improvements to the process of converting inputs into outputs. The
philosophy seeks to improve all factors related to the process of converting
inputs into outputs. It covers equipment, methods, materials, and people.
Kaizen: Japanese term for continuous improvement.

2. Competitive benchmarking: This involves identifying companies or other

organizations that are best at something and studying how they do it to learn
how to improve your operation. The company need not be in the same line of
business as yours.
Examples: Xerox used mail-order company, L.L. Bean, to benchmark order

Some more Examples:

a) American Express is well-known for its ability to get customers to pay
up quickly.
b) Disney world: for its employees commitment.
c) Federal Express: for its speed.
d) McDonalds: for its consistency.

3. Employee empowerment: Giving workers the responsibility for

improvements and the authority to make changes to accomplish them. It
provides strong motivation for employees. This puts decision making into the
hands of those who are closer to the job and have considerable insight into
problems and solutions.

4. Team approach: The use of teams for problem solving and to achieve
consensus takes advantage of group synergy, gets people involved, and
promotes a spirit of cooperation and shared values among employees.

5. Decisions based on facts rather than opinions: Management gathers

and analyzes data as a basis for decision making.

6. Knowledge of tools: Employees and managers are trained in the use of

quality tools.
7. Suppliers quality: Suppliers must be included in quality assurance and
quality improvement efforts so that their processes are capable of delivering
quality parts and materials in timely manner.
8. Quality at the source: The philosophy of making each worker responsible
for the quality of his or her work. Do it right If isnt right, x it. Workers are
expected to provide goods or services that meet specications and to nd
and correct mistakes that occur. Each worker becomes a quality inspector for
his or her work. Each worker certies that the product meets the quality
standards. Suppliers are partners in the process, and long term relationship
are encouraged. This gives suppliers a vital stake in providing quality goods
and services. Suppliers, too, are expected to provide quality at the source,
thereby reducing or eliminating the need to inspect deliveries from suppliers.

Benefits of TQM
Greater customer loyalty

Market share improvement

Higher stock prices

Reduced service calls

Higher prices

Greater productivity
Not solely a quality control tool but a guideline for design, manufacture, sale and
servicing of a product. Also, meeting the customers expectations and
requirements Increase the level of quality and reliability, productivity and safety
while making products and services affordable. Helps facilitate international

ISO = International Organization for Standardization

It promotes worldwide, standards for the improvement of quality, productivity

and operating efficiency through a series of standards and guidelines.


Company Review


Map Functions

Process control






Must reregistered every 3 years

Helpful for companies that do not currently have a quality management.


Get top management

Top management considers ISO 9000 registration

Quality steering committee meets to evaluate process

Committee informs top management of ISO 9000 costs, schedule, etc.

Top management commits to pursue ISO 9000 registration

Train personnel

Hold basic quality and ISO 9000training for all employees

Select and train personnel to be internal auditors

Prepare quality manual policy

Study and understand ISO 9000 requirements as they apply to your


Write (or re-write) company Vision and Mission statements

Write basic Quality Policy Manual outline

Complete rst draft of Quality Policy Manual

Send copy of manual to customer desiring ISO 9000 compliance (if


Prepare Operating Procedures

Dene responsibilities, using Quality Manual as a guide

Have those responsible for functions outline their procedures

Interview managers and ne-tune procedures

Compare Operating Procedures with Quality Manual for consistency

Hold internal audit

Hold internal audit of ISO 9000 manual vs. ISO 9000 compliance

Implement corrective action items from audit

Select registrar

Research registrars and their cost

Qualify possible registrars

Select third party registrar

Go through registration process

Apply for registration and audits

Agree to audit process etc. with registrar

Hold pre-assessment audit

Take any needed corrective action

Have ISO 9000 registration audit

Take any needed corrective action

Re-audit as needed

Take any needed corrective action

Obtain ISO 9000 registration

This veries that you operate your business in compliance to the ISO
9000 requirements.


Create a more efficient, effective operation

Increase customer satisfaction and retention

Reduce audits

Enhance marketing

Improve employee motivation, awareness, and morale

Promote international trade

Increase prot

Reduce waste and increase productivity.