Contents

QUESTION 1: Discuss the quality management principles............................................................2

1.1 Introduction Quality Management.........................................................................................2
QUESTION 2 : Discuss the way an organization can achieve total quality management..............7
1. How to achieve TQM : Customer Focus.................................................................................7
2. How to achieve TQM : Leadership..........................................................................................8
3. How to achieve TQM : Empowerment....................................................................................8
4. How to achieve TQM : Culture continuous improvement.......................................................9
5. How to achieve TQM : Process and system approach...........................................................10
6. How to achieve TQM : Supplier relationship........................................................................10
QUESTION 3 : Relationship between quality management and business performance...............11
Conclusion.....................................................................................................................................17
Appendixes Journals......................................................................................................................17
References......................................................................................................................................18
QUESTION 1: Discuss the quality management principles.

1.1 Introduction Quality Management

Quality Management (QM) is an essential set of techniques, processes and disciplines,

practices and principles, accountabilities in an organization with the purpose to ensure the
organization, product and service are consistent and competitive, and aiming to meet customer
expectation. Similar like what (Sila & Ebrahimpour, 2002), define quality management as an
approach to improve competitiveness, effectiveness and flexibility or an organization. Quality
Management principles guide the organization to establish good practices, systems and standards
to ensure organization operation well control in terms of output delivered, meet stakeholder
requirements, and fit the organization purposes. There are lot of the principles today which come
from a few theorists and practitioners by EW Deming with his 14 principles, J.M Juran with 10
principles, and P.B Crosby with his “Zero defect” and 4 assumptions (Monnappa, 2019). Today,
there are various number of principles been practices and apply by organization and it depend on
the organization. First, the 7 principles are customer focus, leadership, engagement of people,
process approach, improvement, evidence-based decision making and relationship management.
(Bangert, 2019). The list of principles is not in priority order. Today, the importance of each
principles is varying between organization and organization and can be change over time.

Study conducted by (Barros , Sampaio, & Saraiva , 2014) in Portuguese organization by

interviewing with national and international Quality Leader such as academics, specialists in this
area, manager and consultants to see the principle application is effective to the organization.
Second study, this shows 8 generic principles and weightage of important being use in the
organization.

Figure 1 below showed the relationship between all principles and weightage of each
principle. It divided to 4 main weightages started with nothing important, important, very
important and extremely important. Through this, it shows principle PA1 Leadership is the main
critical component in organization, followed by PA2 customer focus, follow by PA6 process
management, followed by PA3 employee involvement and commitment, followed by PA8
Quality tools and business excellence models, follow by PA5 Strategic Planning Management,
follow by PA4 HR Management (Incentive and recognition) and lastly Continuous improvement
and innovation.

Figure 1 : General view of the quality management principles and practices. (Barros, Sampaio,
& Saraiva, 2014)

However, comparing to study conducted by (MItzal, 2010), shown in pyramid diagram

below. The pyramid figure showed that customer focus in main discipline and foundation for the
organization to maintain effective.

Five levels of maturity or organization in quality management systems (MItzal, 2010)

shown in Figure 2.
 With these 2 different researches and study, it shows a difference of ranking of quality
management discipline in different organization. Based on these two studies, it shown different
industry or sector has different discipline ranking.

Customer focus is the extent to which an organization continuously satisfies customer

needs and expectation. (Z.H, 2000). According to (Hackman & Wageman, 1995) one of the most
frequently used TQM practices is obtaining information about customer. In organization
especially focus on profitability, organization shall depend on their customer need. Organization
shall understand customer expectation, behavior, in order to show extremely customer
experience. Organization shall always think to find way current customer need and future need.
It is compulsory for organization to plan and start action on how to understand customer needs.
When discuss about customer focus, organization shall establish method on how to cooperate
with customer – good relationship, measuring customer satisfaction in term of service quality
and product quality.

Leadership and it doesn’t matter transformational or transactional or some call top

management is very important to give commitment to ensure success of organization. According
to (ISO, 2015) there are various of responsibility of leadership to ensure the organization
success. Leadership team shall establish a strategies, objectives and directions of action of the
organization to keep organization effective. Strategy from various angle and scope to determine
sustainability and effective of organization. Leadership is responsible to the organization to
ensure all have a common goal to improve, sustain and make organization success.

Involvement of people from top management up to shop floor member, in other word is
all levels of employee are crucial to enable abilities to organization benefit. All employees shall
have and communicate in one voice to follow strategic direction as organization objectives.
Employees are stakeholder of organization, organization shall also understand the need and
expectation of their employee. According to (ISO, 2015), employee is defined as one of the
interested parties in organization. Involvement of people can make all employees fully utilize
and create environment friendly, and employee not fear to speak up and take an action. It also
encourages employee involvement to support continuous improvement and meet organization
objectives. The involvement of people create benefit to organization with better engagement,
various with enhance creativity and teamwork in achieving organization objective.
 A process is determined as a series of action to come out a result or output. Process
approach in quality management is to make sure the process is well establishing to transform
input to output. Applying a right system and resources of processing within the organization can
consider as a process approach (DIAMANDESCU). Organization shall determine each level of
processes have regulation to keep them under control and improve the efficiency continuously.
All processes need to have a standard in order to enable continuous improvement in future. With
the process approach it will make system easier to understand identical and it will enable
organization to identify the critical processes and allow leaders to focus on that. The other
benefit for the process approach is organization can have ability to focus on key processes,
optimized performance resources, make operation and system process align in achieving
consistency of product, identify and eliminate waste, promoting continuous improvement and
lead organization effective and efficient.

System approach to management, according to (ISO, 2015), it is defined as “identifying,

understanding and managing related processes as a system contribute to the organization’s
effectiveness and efficiency in achieving its objectives”. The system approach is a guide to all
employees to have same focus. It can be done through understanding of quality policy, quality
objective, and important process. This is due to organization has a different function, level and
department and it’s important to make alignment with all. This makes a system more effective
and continue support organization performance.

Continues improvement culture in the organization is essential to make an organization

continuously success. Organization shall have ongoing focus and mindset to always improve its
process, product and system to be more efficient and effective. With the culture of continuous
improvement in organization leads to improve process, identify the risk and opportunity from
various angle and level, promoting innovation make organization success.

Decision making is critical to ensure the leader of an organization make a right direction.
An organization shall decide based on analysis and evaluation of data and information. This
discipline enable organization to determine and monitor key data in decision making. Evaluating
the data give organization to understand the bottle neck, root cause and effect relationship, risk
calculation then right decision making can be made by organization. The right decision with data
analysis driven benefit organization in improve decision making, improve process, improve
effectiveness and efficiency and better negotiation power for organization success.

One of the interested parties in organization is supplier. It is important the organization to

identify and build relationship with the good supplier. Mutual relationship with supplier can be
achieve by sharing organization goals and values. This can make supplier understand our need
and expectation from them. Mutual relationship gives benefit to both parties to success and
organization can well manage the supply chain.
QUESTION 2 : Discuss the way an organization can achieve total
quality management.
Total quality management is defined as total involvement and input from everyone in
each level of organization to produce product and service that consistently meeting customer
need and requirement with support structure process in operation, good policy & procedure to
make sure organization business efficient. There are lot of practices, activities and concept from
organization and market to embark and achieve TQM. For example, continuous improvement
activity, embark in six sigma, employee engagement, benchmarking, Just-In-Time, activity to
increase customer focus, develop employee skill and competency, certified ISO organization,
high quality and competency leadership, partnership with supplier and more ways to achieve it.
There are more detail examples and way listed below.

1. How to achieve TQM : Customer Focus

Organization shall have plan to visit at customer site to understand customer needs and
expectation during installation process. During this visit to customer facility, manufacturer or
organization can understand the way how site processing, installation, arrangement of the goods
(nacm, n.d.). With this input, and get sharing from customer, organization can have a few
insights and unique needs that may can help customer to ease customer process and better
customer experience. Example from this scenario is product packaging. If there to complicated
packaging with many wastes, customer feel uneasy with this. Customer need to have additional
processing to work and dispose the waste. The next example is, the way how organization design
the product for delivery. Complicated design or structure may impact to installation time, install
wrongly and will impact to product quality. Visiting customer with value added meeting can
indirectly help customer to growth better with organization product in honest ways as customer
can see organization make extra effort to understand need and expectation. Open door policy to
customer audit and visit are good practices to enhance relationship with customer. The activity
increases the trust between customer and organization by showing the good practices and control
at organization to fulfill customer requirement. One of the examples at Steelcase (Personal
View), the activity that bring customer to plant has significant impact to customer experience.
Customer has high confident with the product quality and performance. According to (Viio,
n.d.), customer focus can be described as organization shall view the organization from customer
viewpoint, it is putting organization in the shoes of customer.

2. How to achieve TQM : Leadership

Develop or hire a leader that always have customer value on their mind to manage an
organization. One of the examples is to develop leader to become LEAN leadership. There are
come from various level of leadership, and not only from top management. LEAN leadership can
be developed and can be trained to equip with LEAN knowledge, principles and practices.
According to (Steelcase LEAN book), there are five attributes to be a LEAN leadership that is
understand purpose, have always customer value in mind, bring different management style,
develop problem solver and become example for other. Strong leadership bring some value to
organization when leader have ability to organize, structure, have a vision and mission, enable a
connection between outside in perspective “from customer view to internal view”. Good leader
can initiate the Quality Council and strong participate from their level. Quality council objectives
are to provide overall direction relate to TQM and success of organization, building quality
concern and sense into organization culture drive the discipline and practices in TQM. Strong
leadership can have strategy to have more engagement and connection with other market leaders,
exhibition to promote the organization brand.

3. How to achieve TQM : Empowerment

In organization, all levels shall play important roles to ensure all processes are comply to
whatever regulation to meet customer expectation. Giving empowerment to employee is one of
the crucial activities to develop employee and give employee satisfaction in their work.
Empowerment is defined, (businessdictionary., n.d.) organization give the employee skill,
resources, authority, motivation opportunity, and hole their accountability for the any outcome
from their action. Empowerment contributes indirectly and help employee to increase their
competency and satisfaction. Empowerment gives employee to have a quick relevant action
without referring to organization and at the same time employee has competency in order not to
jeopardize organization performance. One of example is, during visiting customer or attending
customer feedback, employee can give quick resolution and rectify at site without referring to
organization that may be make customer not satisfy with the service. However, organization
shall have a proper plan to develop and training employee to get or meet at certain level of
competency to empower them. This indirectly give them job satisfaction. Employee shall think
about the organization instead of individual when decide to any requirement. One of the
activities for empowerment is to have all level employee to engage and participate in quality
council. The voice and ideas from all levels make the process approach and discipline in good
condition. Employee can make effective contribution in council and apply it the daily
organization operation.

4. How to achieve TQM : Culture continuous improvement

Culture of continuous improvement is help organization to stay efficient. Continuous
improvement allow organization to uncover and disclosed the problem and give an idea to fix
them. It doesn’t matter how small the problem and idea, it is a positive change to improve
organization process. Empowerment concept gives employee to think different and make the
employee care their organization with different level of area. This enable employee to always
find way to continuously improve the organization process and resource competency to be more
efficient. To enable employee continuously to engage and contribute to continuous improvement,
the organization shall have a structure program to plan, execute and maintain. One of the critical
steps is organization shall establish business or organization process improvement activities
initiative. This initiative can help organization to govern the continuous improvement activities.
There is a group of people from various level of employee to design, structure and program the
initiative. Leadership participation in this initiative make this more beneficial to organization.
There are lot of tools in our current market available to enable the employee to actively
participate in continuous improvement program. According to (SOARE, 2012), pyramid diagram
explains about the synergic approach to achieve continuous improvement start with leadership
commitment, organization culture, steering committee, infrastructure and tools.
Figure 3 : Synergic approach targeting continuous improvement. (SOARE, 2012)

5. How to achieve TQM : Process and system approach

One of the common practices with current organization is to be as ISO certified
organization. There are lot of benefits with the ISO certified organization internally and
externally. Internally, the ISO requirement to have a standard process discipline and approach
from level and process. With this, managing and controlling the input and output, organization
can have efficient process, better productivity, increase employee morale, good quality in
meeting customer need, and support on continuous improvement. Outside perspective or
externally, the organization will have bigger opportunity to get know and recognize by customer.

6. How to achieve TQM : Supplier relationship

In order to have consistent quality and supply from supplier, organization shall have a
good relationship with supplier. The mutual understanding and agreement with supplier can have
two ways benefit to organization and supplier. With current business trend and strategy,
organization collaborate with supplier become and it partners. According to ISO new version
2018, ( (ISO, 2015), supplier is one of organization interested parties. Then, become one of the
elements for the organization to understand supplier need and expectation and this can achieve a
mutual beneficial and relationship to enhance ability for both in creating value to customer. The
organization should have appropriate way to select supplier as partner. The organization must
establish mutual long-term cooperation with partner. Then, regular visit, audit and assessment to
ensure supplier is consistently support organization needs.
QUESTION 3 : Relationship between quality management and business
performance.
There are lot of benefits by applying TQM in organization. First, with efficient and
consistent operation that produce a good product meeting customer need will give and increase
customer satisfaction and better customer experience. High customer satisfaction leads to
increase repeat order, more market share and revenue growth. Second, the process from input to
output consistently in good quality. Processes are well maintaining, and control will produce less
product defect. It means, the output internally less rejects and at customer with fewer defect or
ZERO defect. Less reject or fewer reject at customer can eliminate a product recall or rework at
customer. As result from lower defect product, organization can prevent from non-value
expenses to rework, scrap or replacement product to customer. It leads to better cost control and
achieve higher percentage of profitability. Lastly, organization indirectly develop and nurture
quality oriented to all employees which lead to overall organization success.

According to (Shahid , Faisal, & Aftab , 2014), most of organization in manufacturing

sectors adopt a TQM for them to become more customer oriented. Their study also shows and
connect with a few previous studies by other researchers that investigated the relationship
between TQM and organizational performance. Then, majority of researchers have agreed that
most significant discipline in TQM that give more impact to organization performance are
customer focus, continuous improvement, employee involvement and leadership. Based on table
4 below, a result from their study,

Figure 4 : Regression result conducted by (Shahid , Faisal, & Aftab , 2014).

 The another study conducted by (Sadikoglu & Olcay, 2014), most of the practices and
principles in TQM give a benefit to overall operation performance. In this study, (Sadikoglu &
Olcay, 2014) elaborate more about each dependent variable performance with TQM practice.
The conclusion from the study, each of TQM practice has significant impact to each of the area
performance in organization. Based on these two studies conducted by researchers, it gives the
positive input for TQM practices and principles have significant impact to organization
performance.

Figure 5 : Result of the regression analysis between TQM index and performance measure.
(Sadikoglu & Olcay, 2014).

In addition to describe more about TQM principles and practices have increase
organization performance to different level, reviewed has been made at my current organization.
I have compiled and reviewed a few performance measurements and key performance indicators
in current organization as a case study for this TQM. Current organization is Steelcase
Manufacturing Malaysia, SMM is a contract manufacturer for Steelcase product. Its main
product is office furniture. SMM is ISO 9001 and 14001 certify manufacturer. With this, SMM
is practicing and using a TQM discipline in organising and controlling it operation. Figure 7
below is the SMM Quality Policy and most of the item are driven from the TQM principle,
continuous improvement, empowerment, customer focus on quality, delivery and competitive
cost, leadership roles, process and system approach to be an operation excellence to all related
interested parties including supplier. Furthermore, Figure 8 below is a diagram to show the
connection between TQM principles and KPIs at SMM. Based on this diagram, customer focus
in a focus at SMM, and you can see the customer focus is linked to all the TQM principles and
KPI. At the centre of this diagram, leadership play an important role to manage, govern and
develop all members, systems, processes to support customer focus principle. The other TQM
principles are continuous improvement, process and system approach, empowerment, and mutual
supplier relationship. Each of TQM is support by the KPI in order to ensure principles are
maintain and achievable.

Figure 6 : Quality Policy at SMM. (Lee & Zainullah, 2020)

 Figure 7 : Connection between TQM principles and KPIs at SM

In the SMM policy mentions about customer focus. In this focus, there are 3 critical items
to focus on customer satisfaction, there are acceptable quality to product and services, on time
delivery and competitive cost. Therefore, there are a few KPI created to support these critical
item likes a 1) Split shipment performance,2) Say YES to market demand performance, and
3)Defect Part Per Million. Split shipment performance is a measure to ensure customer receive a
good as per customer plan in term of time and quantity. Then, say YES to customer demand is a
measure to support on customer expectation for the order confirmation and meeting customer
date demand in quantity and delivery date. Lastly, Defect Part Per Million ( DPPM ) is a measure
to support on product quality once received by customer. These 3 main KPIs for this year are
supporting SMM in understand and deliver a customer experience and expectation. In addition,
these also create a better understanding and improve customer relationship with organization.
Each of any disturbance in these KPIs, there are an action to analyse and improve the situation.
Then, continuous activity elements come into improve the situation.
 In the diagram Figure 8, leadership is a connect and become a governance to all the
elements. There are a few actions and activities from leadership to support SMM objectives.
Leadership in SMM establish a direction, develop KPI, plan a training plan to employees,
leading organization as example and review needs and resource to make sure SMM perform as it
objectives. In this leadership element, there are a few KPI was developed. One of main KPI is a
successor plan training to next level employee. This KPI helps leader to develop employee to
success in leadership roles future. This KPI help SMM and SMM leaders to develop people to be
a servant leader and at the same time support on SMM business performance when there are
more responsible and accountable.

Continuous improvement is one the principles in SMM quality policy. It drives all
employee actively participate in improvement idea and activity to increase SMM performance
toward achieving total customer satisfaction and operational excellence. There are a group of
employees are dedicated to governing a continuous improvement activity. The team also provide
appropriate education, training, method on how to have a proper continuous improvement
activity likes LEAN, Plan-Do-Check-Act, 8D and others. The idea from employee will be
evaluate, track and monitor on the progress. One of the KPI impacted from the continuous
improvement activity is cost saving to the SMM. Previous year result showed, approximate
USD 450k cost saving ideas was generated. The other KPI support to this continuous
improvement activity is Value added Value Engineering ( VAVE ). These practices are
supporting the study conducted by (Shahid , Faisal, & Aftab , 2014) in Figure 5 above.

In the scope of SMM, empowerment play important practice to ensure a few KPIs &
measurements meet the target. Empowerment enhance the employee skill and competency.
SMM and organization will have more skill and competence employee to manage and control
operation. The competence employee supports the operation in various activities and areas
especially to support continuous activity program. As a result, operation performance will
continue success. The success can be illustrated by 2 examples of KPIs at SMM for resource
utilization and order completion. First, in production, KPI for the Resource Utilization is target at
95% over the year, production can achieve this target at the end of the year is 95%. Second is,
Order Completion KPI is target 100% monthly, production also able to meet this target at the end
of the year. One of the good practices from TQM for the success in this KPI was empowerment.
Employee able to work independently without jeopardize the operation needs. Hence, by
achieving these two KPIs, it directly supporting continuous improvement activity for next period
of KPI target.

Lastly, it is about mutual supplier relationship. SMM collaborate with supplier seriously
and many activities was developed to make sure good relationship with them. Supplier is SMM
business partners and good relationship help SMM growth and deliver a good product to
customer. Beneficial relationship is enhancing the ability for both to create value as both are
interdependent. There are activities to make sure business partner can perform better and always
deliver a good result to SMM. TQM elements are main items to look at for the business partner
selection. SMM believe, those business partners that having TQM element are reliable. The
activity manages by procurement and supplier quality team and has a few KPI to govern the
performance. One of the KPI to see business partner performance is Supplier Score Card. The
input in this Score Card comes from evaluation from Purchasing Department, Quality
Department and Procurement. SMM also has a supplier day and monthly business review to
create a healthy environment, joint improvement, recognise supplier performance and clear
communication about future business.
Conclusion

Applying a total quality management with all the principles that being discussed above, it
shows correlation to organization performance. It may not all principles contribute to this
performance directly. Some of them depend on the organization structure, and business field.
The key and essential thing is to ensure the organization is consistently use, apply and promote
the principles and discipline to entire organization and interested parties. With this, it will growth
the organization better.

Appendixes Journals

1 DIAMANDESCU, A. (n.d.). THE MAIN PRINCIPLES OF TOTAL QUALITY MANAGEMENT . Challenges

of the Knowledge Society. Economics , 675.

2 MItzal, A. (2010). Eight Quality management principles-Practical context. In P. L. Borucki A.,

Some problems and methods of ergonomics and quality management (pp. 125-136). Poland:
Publishing House of Poznan University of Technology.

3 Barros , S., Sampaio, P., & Saraiva , P. (2014). QUALITY MANAGEMENT PRINCIPLES AND
PRACTICES IMPACT ON THE COMPANIES’ QUALITY PERFORMANCE. International Conference on
Quality ICQ'14-Tokyo. Tokyo.

4 Shahid , M., Faisal, Q., & Aftab , A. (2014). Realtionship between TQM Dimensions and
Organizational Performance. Pakistan Journal of Commerce and Social Sciences, 662-679.

5 Sadikoglu, E., & Olcay, H. (2014). The Effects of Total Quality Management Practices on
Performance and the Reasons of and the Barriers to TQM Practices in Turkey. Advances in
Decision Sciences.
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