Total Quality Management: A Review
Nikita B. Amane*, Rajeshwar V. Chavan, Punam S. Desai, Sanmati D. Shete, Archana R. Dhole
Rajarambapu College of Pharmacy, Kasegaon, Dist – Sangli, Maharashtra, INDIA – 415404.
Total Quality Management (TQM) is a perception, which educational institutions can only attain through long period of planning, by the formulation and execution of annual quality program, which substantially moves towards the accomplishment of the vision. Application of TQM concepts is one of such degree, which will go a long way in reviving the higher education system. This study endeavors to analyze TQM in higher education and outline the literature on Critical Success Factors (CSF) and its execution in all areas. The study concludes the CSF and its execution in higher education institutions. Some institutions already enjoyed the advantages of TQM methods in their programs with determination and strict adoption of the system to achieve their goals. The insight of this review is giving feedbacks of the recent studies on how TQM system will be able to utilize different instruments and hypothesis to legitimize employees, create a positive friendly environment and highlight the necessity of the students to bring out the best in them.
Approaches of TQM (2)
The total quality management concept has undergone many changes and developments ever since it has been evolved. The modification of TQM has produced Six Sigma. It is a new face on the TQM canvas. The Six Sigma is based on five principals. DMAIC – Define, measure, analyze, improve and control. His study revealed that this approach of TQM encourage team work to attain organization success.
The companies using Six Sigma have two teams i.e. Green belt and Black belt. The green belts undergo 1-2 weeks training. This is learning and knowledge transference where the trainees learn effective project management, problem solving, data analysis etc. Black belts trained on specialized skills and knowledge. The training is designed to teach them computer aided statistical applications and technologies. The training to black belts is spread over 5 weeks time. Such courses and training demand a strong background of mathematics and stats education at college or university level. The benefits attached to this TQM approach is employee involvement at all levels, accountability, extensive training for continue progress. Motorola and General Electric companies prove the success of Six Sigma approach. It is practiced in other sectors also like military and government organizations, hospitals and food manufacturing companies to deliver quality results. (Green, 2006). It is rapidly growing quality approach and in India Godrej – GE, Wipro and Hero Motors all use this management practice to improve business.
The history of total quality management (TQM) began initially as a term coined by the Naval Air Systems Command to describe its Japanese-style management approach to quality improvement. An umbrella methodology for continually improving the quality of all processes, it draws on knowledge of the principles and practices of:
· The behavioral sciences
· The analysis of quantitative and non quantitative data
· Economics theories
· Process analysis
Table 1: Evolution of total quality management
· Some of the first seeds of quality management were planted as the principles of scientific management swept through U.S. industry.
· Businesses clearly separated the processes of planning and carrying out the plan, and union opposition arose as workers were deprived of a voice in the conditions and functions of their work.
· The Hawthorne experiments in the late 1920s showed how worker productivity could be impacted by participation.
· Walter Shewhart developed the methods for statistical analysis and control of quality.
· W. Edwards Deming taught methods for statistical analysis and control of quality to Japanese engineers and executives. This can be considered the origin of TQM.
· Joseph M. Juran taught the concepts of controlling quality and managerial breakthrough.
· Armand V. Feigenbaum’s book Total Quality Control, a forerunner for the present understanding of TQM, was published.
· Philip B. Crosby’s promotion of zero defects paved the way for quality improvement in many companies.
· The Japanese named their approach to total quality companywide quality control. It is around this time that the term quality management systems arises.
· Kaoru Ishikawa’s synthesis of the philosophy contributed to Japan’s ascendancy as a quality leader.
· TQM is the name for the philosophy of a broad and systemic approach to managing organizational quality.
In the global marketplace increased levels of competition have resulted in quality becoming of increasing importance to organizations and consequently Total Quality Management (TQM) has become a key management issue. A considerable number of companies are applying TQM and the topic is the subject of many books and papers.
As the end of the 20th century approaches, TQM appears to be a well accepted system of management. Yet two decades ago the term was not used. What has been the process of development of TQM theory and practice and when and why did the term come into being? This paper attempts to answer these questions. Before discussing the origins of TQM it is necessary to examine definitions of the term. This is not an easy task as almost every writer on the subject has their own definition, by and large devising it to suit their own beliefs, prejudices and business and academic experiences. To some degree this is also true in the organizations which have introduced a TQM approach to managing the business. The result is a proliferation of unique definitions which confounds comparisons and adds to the difficulties of understanding and analysis. Even with the publication of an international definition of TQM in ISO 8402(1994). There is ample evidence that writers and researchers do not stick to this definition and create their own unique offering. Moreover, as Hackman and Wageman (1995) state, a large number of interventions not related with TQM are being encompassed under the TQM banner; this further complicates the issue of definition and understanding. Despite the divergence of views on what constitutes TQM there are a number of common elements running through the various definitions (e.g. top management support, customer and supplier relationships and employee involvement). Several writers have tried to define the different dimensions that shape TQM, including Ahire et al. (1996), Dale et al. (1994), Flynn et al. (1994) and Saraph et al. (1989). An analysis by the authors of the common dimensions. In this paper the discussion about the development of TQM begins with a brief historical review of the different stages that preceded the birth of TQM. A comparative analysis of the Japanese approach to quality management and an examination of Feigenbaum’s (1961) concept of Total Quality Control is made, these constitute two of the major inputs into the development of TQM.
“Quality is the degree to added value to products and/or service delivery as perceived by all the stakeholders through conformance to specifications and the degree to added excellence to products and/or service delivery through a motivated workforce, to meeting customer satisfaction.”
Introduction of TQM:
Figure 1: flow chart for TQM
Total quality management models (10)
Total Quality Management is a combined effort of both top level management as well as employees of an organization to formulate effective strategies and policies to deliver high quality products which not only meet but also exceed customer satisfaction. Total Quality management enables employees to focus on quality than quantity and strive hard to excel in whatever they do. According to total quality management, customer feedbacks and expectations are most essential when it comes to formulating and implementing new strategies to deliver superior products than competitors and eventually yield higher revenues and profits for the organization. Credits for the process of total quality management go to many philosophers and their teachings. Drucker, Juran, Deming, Ishikawa, Crosby, Feigenbaum and many other individuals who have in due course of time studied organizational management have contributed effectively to the process of total quality management.
There are many models of total quality management and it is really not necessary that every organization should select and implement the same model.
Following are the various models of total quality management:
§ Deming Application Prize
§ Malcolm Baldrige Criteria for Performance Excellence
§ European Foundation for Quality Management, and
§ ISO quality management standards
Customers and their feedbacks are the foundation of every Total Quality Management model. In simpler words, Total Quality Management begins with understanding customers, their needs and what they expect from the organization. Design foolproof processes and systems to collect customer data, information to further study, analyze and act accordingly. Such activities not only help you understand your target customers but also predict customer behavior. As a business marketer, you need to know the age group of your target customers, their preferences and needs. Employees need to know how their products or services can fulfill customer needs and demands. Total Quality Management model requires meticulous planning and research. Every total quality management model integrates customer feedbacks with relevant information and plans accordingly to design effective strategies to achieve high quality products. Strategies formulated to yield better quality products need to be evaluated and reviewed from time to time. Remember, customers are satisfied only when products meet their expectations, fulfil their needs and are value for money. Their overall experience with the organization needs to be pleasant for them to be happy and return to the organization even the next time. Continuous improvements, changes and modifications in the existing processes according to customer expectations are necessary to yield higher profits. Processes can’t be same always. If a customer complaints about a particular product of yours, find out the root cause of problem. Understand and implement necessary total quality management models to rectify the problem, remove the defect for a high quality product.
The successful implementation of Total quality Management model needs extensive planning and most importantly participation of every single member who is benefitted out of the organization (Management, suppliers, clients and even customers). Without the participation of each and every employee, total quality management model would be a complete failure. Total Quality Management model begins with research and collecting information about end-users followed by planning and full participation of employees for successful implementation. Top level Management needs to make other team members aware of the benefits of total quality management process, importance of quality to survive in the long run and how they can implement various TQM models by prioritizing their customers and their feedbacks.
The eight principles of TQM (5-6)
Provide reliable information for knowledge and understanding of customer needs and expectations allow the establishment of appropriate organizational objectives according to the customer needs and expectations Increase market share create the best conditions for customer loyalty. Allow to measure and analyze customer satisfaction and initiate actions based on results. Managing the client relationship, ensuring a balance between satisfying customers and other direct stakeholders
Ensuring leadership (management involvement)
Top managers must focus their attention throughout the organization.Middle level managers (heads of departments) must focus their attention at process level to optimize the activities of the departments they lead.Employees must understand and comply with quality system at execution level: ‘well done the first time and every time’ to remove non-quality and to the compliance with the requirement of ‘zero defects’.
The involvement of all staff in decision making
Understanding by employees of the importance of their role and contribution in the organization. Employees can evaluate their own performance compared to their personal goals. Employees will be permanently preoccupied to develop the knowledge and experience to enhance their performance. It creates the framework in which employees openly share their knowledge and experiences in solving involving problems.
Process approach to management
Processes for management of the organization include processes referring to strategic planning, determining quality policy and quality objectives. Resource management processes are those processes that provide resources, and they are necessary for the organization’s management processes for realization and measurement of the product. Processes for implementation (product development processes) are those which result in the intended outcome and refer to the product or production process of service.
System approach to management
Better achieve of the objectives pursued by integration and alignment of processes it provides confidence to the stakeholders on the existence, effectiveness and consistency of the organization. Understanding the interdependencies between processes within the organization. A structured approach to harmonization and integration of processes; achieving a better understanding of roles and responsibilities. Understanding the organization’s capabilities and prioritization of actions according to material constraints. Defining how specific activities will take place within the system; pursuing permanently the system improvement by measurement and evaluation.
Continuous improvement in performance
Among the advantages of organizations applying this principle. Continuous performance improvement becomes a permanent approach across the organization. Requires staff training methods and tools for continuous improvement. Continuous improvement of products and processes is a goal of every person in the organization. Establishment of measures for continuous improvement and its tracking. Recognition and distribution of the improvements.
Management by facts
Decisions are pertinent and reliable because they are based on accurate and verified data and information. Data and information analyzing is made using established methods. Making decisions and setting up actions based on an analysis of the facts, balanced with experience and intuition. Providing access to data to those who need them.
Mutually advantageous relations with suppliers
The possibility of establishing relationships that balance short-term gains with long-term. Mutual consent providers and beneficiaries on resource gains. Identification and selection of major suppliers viable to make improvements in their own activity. Setting common activities to improve quality
The Total Quality Management (TQM) Strategy (7)
Four components frequently cited as critical to a successful TQM strategy are customer satisfaction, employee involvement, managerial leadership, and process improvement and control. Marketing theory has long recognized the importance of customer satisfaction to the business organization.
Quality focused organizations must identify their customers (both internal and external), determine the specific needs of these customers, integrate all activities of the organization (including marketing, production, finance, HRM, and IS) to satisfy the needs of these customers, and finally, follow up to ensure the customers have been satisfied . JIT, TQM, and SCM represent alternate approaches to improving the effectiveness and efficiency of an organization’s operations function.
The cost of quality is considered by both Crosby and Juran to be the primary tool for measuring quality. In their approach, it is used to track the effectiveness of the TQM process, select quality improvement projects, and provide cost justification to doubters. By bringing together these easily assembled costs of review, inspection, testing, scrap, and rework, one can convince management and others of the need for quality improvement." Cost of quality has received increasing attention in recent years. It is effective in its intended purpose of raising awareness about quality and communicating to management the benefits of TQM in terms of dollars. Under TQM systems, product/service design efforts have two objectives: designing manufacturable products and designing quality into the products. Designing to simplify manufacturing utilizes cross-functional teams to reduce the number of parts per product and standardize the parts, which results in more efficient process management by reducing process complexity and process variance.
Effective supplier quality management is facilitated by long-term, cooperative relationships with as few suppliers as possible to obtain quality materials and/or services. Maintaining a small number of suppliers improves product quality and productivity of buyers by encouraging enhanced supplier commitment to product design and quality. Quality creates not only a price/value advantage over competitors but also enables the firm to charge a higher per/unit sale price through differentiation. A strategy of high quality leads to a sustainable competitive advantage . Firms competing on quality pursue an operational strategy that controls quality of the product/service and seeks continuous improvement.
Vision: Vision refers to the extent to which senior management could articulate a mission for the hospital clarifying that TQM was a departure from the past paradigm, and provide a new direction to the hospital.
Leadership: Leadership refers to the extent to which senior management played a visible role in championing the cause of TQM and involved themselves in the details of implementation.
Momentum: Momentum is the degree of self-sustainability of the change programme based on the early successes in the implementation.
Resources: Resources refer to budgetary and manpower support assigned to the TQM programme.
Teamwork: Teamwork is the degree to which all professionals in the hospital work together in the implementation of the programme.
Training: Training refers to the extent the organization emphasized the need for classroom-based conceptual and/ or experiential learning relevant to the programme.
Focus: Focus refers to the extent that the change programme was able to concentrate on making changes to the core processes rather than peripheral processes.
Outcome: Outcome refers to both medical and financial outcomes that may be seen as desirable goals of a TQM programme.
TQM Six Basic Concepts (9)
Continuous Process Improvement
Top management must realize importance of quality
Quality is responsibility of everybody, but ultimate responsibility is CEO
Involvement and commitment to CQI
Quality excellence becomes part of business strategy
Lead in the implementation process
Characteristics of successful leaders
Give attention to external and internal customers
Empower, not control subordinates. Provide resources, training, and work environment to help them do their jobs
Emphasize improvement rather than maintenance
Encourage collaboration rather than competition
Train and coach, not direct and supervise
Learn from problems – opportunity for improvement
Continually try to improve communications
Continually demonstrate commitment to quality
Choose suppliers on the basis of quality, not price
Establish organizational systems that support quality efforts
Customer is always right – in Japan customer is “King”
Customer expectations constantly change – 10 years ago acceptable, now not any more!
Delighting customers (Kano Model)
Satisfaction is a function of total experience with organization
Need to continually examine the quality systems and practices to be responsive to ever – changing needs, requirements and expectations – Retain and Win new customers Total Quality Management
Issues for customer satisfaction Checklist for both internal and external customers
Who are my customers?
What do they need?
What are their measures and expectations?
Does my product/service exceed their expectations?
How do I satisfy their needs?
What corrective action is necessary?
Discover customer dissatisfaction
Discover priorities of quality, price, delivery
Compare performance with competitors
Identify customer’s needs
Customer Feedback Tools/Method
Customer Satisfaction Index Good experience are told to 6 people while bad experience are repeated to 15 people
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Accepted on 27.08.2018 © A&V Publications All right reserved