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TQM functions on the premise that the quality of products and processes is the responsibility of everyone involved in the creation or consumption of the goods or services the organization offers. TQM capitalizes on management involvement, the workforce, suppliers, and even customers to meet or exceed customer expectations.
TQM is often compared to, and contrasted with, sets of standards like the International Standards Organization (ISO). However, TQM is not a set of rules to follow and may be used in conjunction with a specific set of standards like ISO. However, researchers that studied six organizations using TQM identified nine common practices that can be considered essential to TQM:
| Practice | Description | Example |
|---|---|---|
| Cross-functional product design | Collaboration among various departments to design and develop products. | To develop a new product, R&D discusses new technologies, the marketing department provides information on consumer preferences and trends, and the customer service department shares information on customer complaints, while the finance and accounting department shares sales data. |
| Process management | A company manages processes effectively to obtain the best results. | A mortgage lender maps out their processes for loan approval to understand bottlenecks and challenges so they can improve upon them. |
| Supplier quality management | The relationship between the company and its suppliers is strong. | A car manufacturer works with various suppliers to assist in identifying root causes of any quality issues. |
| Customer involvement | Customers are asked to give feedback, and the feedback is used to make changes in the organizational system. | A restaurant sends customers a survey after dining with them to assess specific elements of quality, and the restaurant makes changes based on the feedback. |
| Information and feedback | There is effective interaction, information provided, and a feedback system. | A manager at a retail store implements a feedback system with effective communication, where employees are rewarded for meeting goals. |
| Committed leadership | Organizational leaders are committed to quality and set clear goals as they relate to quality. | The COO and CEO of an e-bike manufacturer engage employees on the manufacturing floor to discuss quality issues and improvements. |
| Strategic planning | A mission, vision, values, and philosophy help the organization to determine strategic direction and goals as they relate to quality. | An airline has a clear mission and values related to on-time departures and can provide quality service throughout all areas of their business. |
| Cross-functional training | Cross-functional training and teams can improve quality by fostering collaboration and communication across the organization. | In a cell phone manufacturing plant, the marketing team regularly goes on the production floor to see and understand the processes used to make the cell phones. |
| Employee involvement | Employees are involved in quality improvement practices. | A manufacturing facility regularly has brainstorming meetings with different departments to suggest innovations to improve product quality. |
A commitment to quality is, like Lean and Six Sigma, more of a mindset or a philosophy than a specific way of doing things. However, it’s important to emphasize that an organization must show its commitment to quality, not just declare they are TQM.
| Philosophy | Description | Example |
|---|---|---|
| Satisfy the customer | The first, and major, TQM principle is to satisfy the customer—the person who pays for the product or service. Customers want to get their money’s worth from a product or service they purchase. A company that seeks to satisfy the customer by providing them with value for what they buy and the quality they expect will get more repeat business, referral business, and reduced complaints and service expenses. Some top companies not only provide quality products but also give extra service to make their customers feel important and valued. | Amazon, for example, uses data analytics to understand customer preferences and purchasing behaviors. As a result, they personalize recommendations to customers based on this data to ensure customer satisfaction. |
| Satisfy the users | If the user of the product is different than the purchaser, then both the user and customer must be satisfied, although the person who pays gets priority. |
When textbook companies write a textbook, the purchaser or decision maker is the professor when they decide what book to use. However, the students are also customers too, so the textbook company must be aware of both users’ needs in order to satisfy the multiple users. |
| Internal customers and chain of customers | Within a company, a worker provides a product or service to his or her supervisors. If the person has any influence on the wages the worker receives, that person can be thought of as an internal customer. A worker should have the mindset of satisfying internal customers to keep their job and get a raise or promotion. |
For example, in a smartwatch company, the R&D team’s likely internal customer is the product design department. As they research new technologies and materials, they provide the product design department with innovative solutions and ideas.
Each department ultimately acts as a checkpoint for quality assurance and provides a feedback loop between all departments should there be quality issues. |
| External suppliers | A company must look to satisfy their external suppliers by providing them with clear instructions and requirements and then pay them fairly and on time. It is in the company’s best interest that its suppliers provide quality goods or services if the company hopes to provide quality goods or services to its external customers. | Toyota works closely with Denso, a company that supplies key automotive components to Toyota. Denso implements rigorous quality control measures and aligns its processes with Toyota’s quality standards. The two companies work closely on developing advanced technologies and collaborate on best practices and R&D efforts. |
| Get better work | The reason to do this is to get more productivity out of workers and retain the best performers. An effective supervisor with a good team of workers will satisfy internal customers. | GE, for example, provides continuous training and development on quality and innovation to ensure the ability to satisfy internal customers, which ultimately satisfies external customers. |
| Empower workers | One area of satisfying the internal supplier involves empowering the workers. This means allowing them to make decisions on things that they can control. This not only takes the burden off the supervisor, but it also motivates these internal suppliers to do better work. | Ritz-Carlton Hotels empowers employees by authorizing expenditures up to a certain amount to ensure customer satisfaction, without needing approval from management. This ensures workers take initiative in ensuring customer satisfaction. |
| Continuous improvement | You can never be satisfied with the method used because there always can be improvements. The competition is always improving, so it is necessary to strive to keep ahead of the game. | Toyota has implemented Kaizen, which involves continuous, incremental improvements in all aspects of their operations. |
| Work smarter, not harder | Some companies have tried to improve by making employees work harder. This may be counterproductive, especially if the process itself is flawed. For example, trying to increase worker output on a defective machine may result in more defective parts. Examining the source of problems and delays and then solving those problems is what works best. Often, the process has bottlenecks that are the real cause of the problem. Those are what should be removed. | For example, an electronics manufacturer might implement automated assembly lines. These automated lines allow workers to oversee and maintain the machines, which reduces repetitive strain and error rates. |
| Worker suggestions | Workers are often a source of continuous improvements. They can provide suggestions on how to improve a process and eliminate waste or unnecessary work. | Toyota, for example, has a formal system called Kaizen Teian for collecting and implementing employee suggestions. The process is structured and can be submitted in a variety of ways. This helps create a culture that encourages and focuses on quality. It is discussed further in the next section. |
There are many methods that can be used to ensure TQM. Most companies will implement a combination of methods to collect data and track progress toward TQM.
Recall that Plan-Do-Check-Act promotes continuous improvement through iterative stages of planning, implementing, evaluating, and refining processes. This is also referred to as the Deming cycle for its inventor, Edwards Deming, who stressed the constant interaction of the four steps.
EXAMPLE
An auto manufacturer might aim to reduce defect rates on a certain part. They:As you learned in Unit 3, Six Sigma employs a data-driven methodology to eliminate defects and reduce variability in processes, using structured frameworks like DMAIC (define, measure, analyze, improve, control) for existing processes and DMADV (define, measure, analyze, design, verify) for new processes. For example, Six Sigma could be used for a service business like a bank to streamline loan approval processes, which increases customer satisfaction.
Recall that Lean focuses on eliminating waste and enhancing efficiency by ensuring smooth process flow, reducing unnecessary steps, and continuously seeking perfection. Lean methodology can guide TQM decisions such as weighing decisions on quality improvement.
EXAMPLE
Say a manufacturer wants to reduce the number of flawed products being produced. They have many options for quality control. Lean would guide the planning away from such measures that are labor intensive and wasteful, such as constant inspections of each product and at each phase of the process; a Lean practice aligning with this improvement plan would be randomized spot inspections that will help detect the source of the problems without intensive labor.Poka-yoke literally means “avoiding errors” in Japanese. In practice, this means the process is designed to be less prone to error, such as designing items that can only be assembled one way or which include color coding to match parts and assembly points to reduce the likelihood of using the wrong part. Another poka-yoke principle would be utilizing machinery that doesn’t operate if not used safely.
EXAMPLE
If you’ve ever put together furniture at home, you know it is helpful when different parts are labeled as 1, 2, 3, etc., to aid in quick and accurate assembly.Total productive maintenance (TPM) aims to optimize equipment effectiveness by involving all employees in maintenance activities, thereby reducing downtime and increasing reliability—for example, planning maintenance to prevent breakdowns and involving employees in maintenance, such as by having operators perform basic maintenance tasks like cleaning and inspection.
As mentioned in the previous section, Kaizen Teian (in Japanese, “ideas for improvement”) emphasizes continuous, incremental improvement by engaging all employees in suggesting and implementing small changes that collectively enhance overall performance. For example, companies can create short-term projects to improve specific areas, and there is a significant amount of participation by employees and management in this process.
Root cause analysis (RCA) identifies the underlying causes of problems or defects, often using tools like fishbone diagrams (also called Ishikawa diagrams, for their inventor) to uncover and address root issues. For example, suppose a manufacturing plant is experiencing a high rate of product defects. They then note this as a problem statement and brainstorm potential causes, such as poor-quality raw materials, inadequate training, and environmental factors. Then, after looking at all the potential causes, they can link the causes to the problem and solve it. We'll address fishbone diagrams at a greater length in the next tutorial.
While these are just a few methods that can be used, the important thing to remember is that TQM involves continuous improvement and is an overarching process that can be used in tandem with other methodologies or guidelines.
Source: This content is adapted from Operations Management by Saylor Academy and NSCC https://pressbooks.nscc.ca/operationsmanagement2/ , under Creative Commons 4.0, https://creativecommons.org/licenses/by/4.0/
