Total quality management Meaning - Total quality management (TQM) is the continual process of detecting and reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience, and ensuring that employees are up to speed with training. History – TQM history often dates back to the early 1900s when Walter A. Shewhart introduced modern quality control. Principles of TQM Focus on Customers – Under TQM, the customers define whether or not your products are high quality. Customer input is highly valued, as it allows a company to better understand the needs and requirements in the manufacturing process . Commitment by Employees - For TQM to be successful, employees must buy into the processes and system. This includes clearly communicating across departments and leaders what goals, expectations, needs, and constraints are in place. Improve Continuously – As a company learns more about its customers, processes, and competition, it should gradually evolve and strive for incremental, small improvements. Adherence to Processes- TQM's systematic approach relies heavily on process flowcharts, TQM diagrams, visual action plans, and documented workflows. Every member along the process must be aware and educated on their part of the process to ensure proper steps are taken at the right time of production. Strategic and Systematic Approach – A company's processes and procedures should be a direct reflection of the organization’s vision, mission, and long-term plan. Data Utilization - The systematic approach of TQM only works if feedback and input is given to evaluate how the process flow is moving. Management must continually rely on production, turnover, efficiency, and employee metrics to correlate the anticipated outcomes to the actual results. Integrate Systems- One way to utilize data is to integrate systems. TQM strategies believe systems should talk to each other, convey useful information across departments, and make smart decisions. When goods or inventory is used in one area, another department should have immediate access to that ERP information. Communication - Though data may transfer between departments freely, there is a human element to coordinating processes and making sure an entire production line is operating efficiently. Whether it is normal day-to-day operations or large organizational changes, effective communication plays a large part in TQM to motivate employees, education members along a process, and avoid process errors. Importance of TQM TQM can have an important and beneficial effect on employee and organizational development. By having all employees focus on quality management and continuous improvement, companies can establish and uphold cultural values that create long-term success to both customers and the organization itself. TQM’s focus on quality helps identify skills deficiencies in employees, along with the necessary training, education or mentoring to address those deficiencies. Advantages and limitations Pros Cons Delivers stronger, higher quality products to customers May require substantial financial investment to convert to TQM practices Results in lower company-wide costs Often requires conversion to TQM practices over a long period of time Minimizes waste throughout the entire production and sale process Enables a company to become more adaptable May be met with resistance to change Requires company-wide buy-in to be successful
