ESSENTIAL ELEMENTS OF TQM

In the modern context TQM is thought to require participative management; continuous process

improvement; and the utilization of teams. Participative management refers to the intimate

involvement of all members of a company in the management process, thus de-emphasizing traditional
topdown management methods. In other words, managers set policies and make key decisions only
with the

input and guidance of the subordinates who will have to implement and adhere to the directives. This

technique improves upper management's grasp of operations and, more importantly, is an important

motivator for workers who begin to feel like they have control and ownership of the process in which
they

participate.

Continuous process improvement, the second characteristic, entails the recognition of small,

incremental gains toward the goal of total quality. Large gains are accomplished by small, sustainable

improvements over a long term. This concept necessitates a long-term approach by managers and the

willingness to invest in the present for benefits that manifest themselves in the future. A corollary of
continuous improvement is that workers and managers develop an appreciation for, and confidence in,

TQM over a period of time. Continuous improvement, or Kaizen, is a method for identifying

opportunities for streamlining work and reducing waste. The practice was formalized by the popularity
of

Lean / Agile / Kaizen in manufacturing and business, and it is now being used by thousands of companies

all over the world to identify savings opportunities. Many of these ideologies can be combined for
excellent

results.

Teamwork, the third necessary ingredient for TQM, involves the organization of cross-functional

teams within the company. This multidisciplinary team approach helps workers to share knowledge,

identify problems and opportunities, derive a comprehensive understanding of their role in the overall

process, and align their work goals with those of the organization. The modern "team" was once the
"quality

circle,".

TWO BASIC ASPECTS OF QUALITY

Quality of design - Quality of design is the quality which the producer or supplier is intending to offer
to the customer. When the producer is making the quality of design of the product, he should take into

consideration the customer's requirements in order to satisfy them with fitness for use of the product.

If the quality of design does not reflect the customer's requirements, the product which the producer

offers him would not probably satisfy the customer, even if it does sufficiently conform to the design.

Quality of design is usually indicated by completeness and correctness of specifications, drawings,

catalogues, etc. and is measured with fitness for use.

Costs of design quality

1. Designing products that satisfy customer needs

2. Significant component of these costs is opportunity cost of sales lost from not producing a product

that customers want

3. Many of these costs are very difficult to measure objectively (Most companies do not measure

financial costs of design quality but rely on nonfinancial measures.)

Conformance quality- Quality of conformance is the ability of a product, service, or process to meet its

design specifications. Design specifications are an interpretation of what the customer needs. Of course,
a

product having high quality of conformance may still not be perceived by a customer as being an
acceptable

product if the person who created the design specifications did not correctly interpret what the
customer

wanted. Quality of conformance is measured within an acceptable tolerance range. For example, if

passengers expect a flight to leave within 10 minutes of its scheduled departure date, then any
departure

time within that time frame has a high quality of conformance, while any longer interval does not. Thus,

quality of conformance equates to conformance to specifications within an acceptable tolerance range.

COSTS OF QUALITY (COQ)

Quality-linked activities are those activities performed because poor quality may or does exist. Costs of

quality are the costs that exist because poor quality may or does exist. Quality costs are associated with
two

subcategories of quality-related activities: control activities and failure activities.

Control activities are performed by an organization to prevent or detect poor quality. Control costs