Have you ever excitedly purchased something only to get home and find the product defective? You’re ready to try out this new thingamajig but discover that not only can you not experience it right away, but now you’ve got an errand to run.
As a producer, you have to think along these lines. Are your products and services doing this to your customers?
Quality management is critically important in manufacturing. If you’re pumping out products at a breakneck pace but they disappoint your customers, it’s all for naught and will negatively impact your business.
Product defects result in a bad customer experience; 91% of consumers will not do business with a company again if they have a negative experience the first time.
The good news? Negative experiences are avoidable. In addition to having good logistics software in place, you can take advantage of the concept of total quality management (TQM) to revolutionize not only your manufacturing activities but your entire business model.
Total quality management defined
So, what exactly is total quality management? According to the American Society for Quality (ASQ), it is a:
…management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work.
In the logistics sphere, TQM is an approach that integrates all quality-related functions and processes companywide to improve the quality and performance of the finished product.
Total quality management techniques were first developed in the World War I era, when large-scale manufacturing efforts were widespread but produced items of poor quality.
Over the ensuing years, manufacturing industries developed standards and sampling methods to ensure high-quality finished products.
A 2014 study published by Advances in Decision Sciences found that TQM implementation is “positively related to all performance measures” and that total quality management practices “in general, improve performance of the firm.”
The 8 principles of total quality management
According to ASQ, total quality management:
- Is customer-focused. Everything a company does—from training employees to buying new tools—is done with the customer in mind.
- Involves all employees. Employees must be empowered to work toward common goals and allowed to operate in a workplace free from fear.
- Is process-centric. By enacting processes that take inputs and turn them into outputs, you can consistently create high-quality products regardless of the people involved.
- Is integrated. All developed processes must be integrated into one larger process, and everyone must be on the same page, buying into the company’s vision, mission, and guiding principles.
- Has a strategic and systematic focus. Companies must formulate strategic plans that include quality integration as a fundamental component.
- Is constantly improved upon. Empowered managers and employees must continually look for new ways to increase product competitiveness and efficacy.
- Involves fact-based decision-making. You must gather data on performance in order to know how well you’re doing. You also need to analyze this data to constantly improve and refine how you do things.
- Facilitates seamless communication. Managers, employees, and owners need to communicate routinely and effectively to help maintain morale and boost motivation.
3 popular TQM processes
Now that you know what total quality management is, it’s time to dive deeper into three new processes that build on its original principles: ISO 9000, Lean manufacturing, and Six Sigma.
1. ISO 9000: Focuses on people
ISO 9000—first published in 1987 by the International Organization for Standardization—encompasses an entire family of quality management systems standards. ISO 9000 is based on seven quality management principles:
- Customer focus. Companies should focus first and foremost on meeting customer expectations.
- Leadership. Good leaders are necessary to maintain the right internal environment and drive companies toward their objectives.
- Engagement of people. Employees must be empowered to take full advantage of their abilities.
- Process-centric. All activities and resources should be managed as a system-wide process.
- Improvement. Companies must continuously and actively seek improvement.
- Evidence-based decision-making. Decisions should be based on analyzed data.
- Relationship management. Companies should maintain healthy and mutually beneficial relationships with suppliers, contractors, and service providers.
Key difference from TQM: While ISO 9000 shares many of TQM’s principles, it focuses more on leadership in an organization and people management.
Use this process when: you believe your operation needs better leadership.
2. Lean manufacturing: Focuses on waste
Lean manufacturing is a systematic method of eliminating waste and inefficiency within manufacturing while continuing to produce products at the same (or even higher) level.
Developed in Japan by automobile manufacturer Toyota, it focuses on overburden (“Muri”) and unevenness in work loads (“Mura”). Lean manufacturing seeks to identify things that add value, as well as those that don’t, so the latter can be eliminated.
Lean manufacturing focuses on seven types of waste:
- Transport: Moving around things that aren’t necessary for production.
- Inventory: Anything that isn’t involved in production.
- Motion: People or equipment moving more than is required for production.
- Waiting: Inactivity before the next production step.
- Overproduction: Producing more than is required.
- Overprocessing: Using more activity than is necessary to produce the end product.
- Defects: Expending too much effort fixing problems with the finished product.
Key difference from TQM: Lean manufacturing focuses more on identifying inefficiencies in the manufacturing process, rather than promoting an organization-wide focus on quality management.
Use this process when: you believe that production inefficiencies are decreasing your revenue.
3. Six Sigma: Focuses on process
Six Sigma, developed in the 1980s at Motorola, is a set of techniques for improving on processes in an organization. This method aims to improve product quality by identifying and eliminating variability that can cause defects.
The name “Six Sigma” is derived from the sigma rating system for the proportion of defects to total products created, with six sigma being the very best possible.
Six Sigma projects follow two methodologies, each with five phases: DMAIC and DMADV.
DMAIC:
- Define the system. Figure out what the customer wants.
- Measure key aspects of the current process. Collect the data.
- Analyze the data. Determine the cause of a defect.
- Improve the current process. Create a new future state process.
- Control the future state process. Put control systems in place and constantly monitor the process.
DMADV:
- Define design goals. Figure out what the customer wants.
- Measure and identify characteristics that are critical to quality. Collect the data.
- Analyze the data. Figure out how to develop and design alternatives.
- Design an improved alternative. Fix the problem.
- Verify the design. Implement the production process and then monitor it.
Key difference from TQM: Six Sigma focuses more on the manufacturing process, rather than taking a holistic view of the organization as TQM does.
Use this process when: you think your manufacturing process is what needs the most attention and improvement within your company.
Take action now
If you aren’t using TQM or any of the above processes at your small business, now is the time to get started.
Follow these three steps to get the ball rolling:
- Choose which process is best for your organization based on the problem you need to solve. Are your processes fine but your leadership lacking? Pick ISO 9000. Could your operations be streamlined and refined to create a better end product? Choose Six Sigma.
- Set up a meeting with key members of your team and go over the list of principles for whatever process you picked. Then, begin brainstorming ideas on how to implement the principles at your business.
- Look at your list of brainstormed ideas and choose the easiest/simplest one to implement right away. Track whether it helps by collecting data and comparing it to output before you began. Once you’ve successfully implemented this first step, gradually introduce additional changes over time.
Want to learn more about streamlining your logistics? We’ve got a few great resources you can dive into right now to explore the concepts discussed above in even more detail:
- The Ultimate Guide to Lean Project Management
- The Top 5 Lean Tools for Six Sigma Enthusiasts
- What Is Lean Construction and How Can It Help You?
FAQs
What are the three process of total quality management? ›
3 popular TQM processes. Now that you know what total quality management is, it's time to dive deeper into three new processes that build on its original principles: ISO 9000, Lean manufacturing, and Six Sigma.
What are the three 3 key activities of quality management? ›Quality improvement methods comprise three components: product improvement, process improvement, and people-based improvement.
What are the 3 areas of the quality management viewpoint? ›As a reference tool, it contains three main components: Overall Quality Philosophy, Quality Assurance, and Quality Control.
What is total quality management in your own words? ›Total Quality Management (TQM) is a management framework based on the belief that an organization can build long-term success by having all its members, from low-level workers to its highest ranking executives, focus on improving quality and, thus, delivering customer satisfaction.
What is total quality management in simple words? ›A core definition of total quality management (TQM) describes a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work.
What are your quality processes? ›Quality Process means the quality assurance procedures, methods and mechanisms that assure consistency and control in producing a product or service.
Why do we need quality management process? ›Its purpose is to ensure that, every time a process is performed, the same information, methods, skills and controls are used and applied in a consistent manner. Ultimately, this helps to ensure customer satisfaction.
What are the main principles of quality management? ›- Engagement of people.
- Customer focus.
- Leadership.
- Process approach.
- Improvement.
- Evidence-based decision making.
- Relationship management.
TQM ensures that all components of the industry work together with a united goal to improve the quality of its services and products. Total quality management usually focuses on enhancing the production process and process of rendering of services.
What are the 4 principles of total quality management? ›Main principles of TQM are as follows:
(i) Quality can and must be managed. (ii) Everyone has a customer and is a supplier. (iii) Processes, not people are the problem. (iv) Every employee is responsible for quality.
What is the most important element of TQM and why? ›
Leadership – It is possibly the most important element in TQM. It appears everywhere in organization. Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and to instill values that guide subordinates.
What is a quality management process? ›A quality management process or QMP is a formalized procedure through which the quality of work is thoroughly maintained and processed throughout any project.
What is quality management example? ›Quality management is largely a practice of measuring, improving and measuring again. This can include measurements that improve operational processes in real time. For example, measuring quality variances at every step of the production process to identify quality problems at the workstation level.
What are the 5 basic principles of total quality management? ›- Produce quality work the first time.
- Focus on the customer.
- Have a strategic approach to improvement.
- Improve continuously.
- Encourage mutual respect and teamwork.
Total Quality Management (TQM) is a management approach focusing on the improvement of quality and performance in all functions, departments, and processes across the company to provide quality services which exceed customer expectations.
How can you apply TQM in your daily life? ›- LIFE BEFORE AND AFTER TQM:
- Sort — Eliminate whatever is not needed.
- Straighten — Organize whatever remains.
- Shine — Clean the work area.
- Standardize — Schedule regular cleaning and maintenance.
6. What is the first step of QA? Explanation: Identification of customer need is the first step of QA after which further basic elements of QA are identified. QA depends not only on QC but also on the activities of the entire company.
What are the types of quality management systems? ›Four types of quality processes are prominent in many industries: ISO 9001, AS9100, Six Sigma, and CMMI. Choosing one depends on its fit to the industry and the understanding of the particular QMS by both employees and customers.
What makes a good quality management system? ›Quality management systems should address an organization's unique needs; however, the elements all systems have in common include: The organization's quality policy and quality objectives. Quality manual. Procedures, instructions, and records.
What is the importance of quality? ›Quality is important for customer satisfaction that ultimately results in customer loyalty. Quality management assists an organisation to create and developing a product/service which is desired by the customers. Quality establishes that higher revenues and productivity is achieved for the organisation.
What is a process approach? ›
The process approach is a method of thinking applying to understand and plan the sequence and interactions of processes in the system. Saying that again, it's a method to plan the processes and the interactions of these processes as part of the management system.
How can TQM help you as a student? ›Adapting to TQM (Total Quality Management) will make important changes in classroom. By the help of this method, the communication distance between student and teacher will disappear. Therefore, student and their self-confidences will increase within guidance.
What are the important elements of TQM? ›To successfully implemented TQM organization should focus on 6 key elements: Confidence, Training, Teamwork, Leadership, Recognition and Communication (Bhat et. al., 2009). It is a result of integrity and ethics of the organization without trust cannot be built within the work of TQM.
What are the 4 principles of total quality management? ›Main principles of TQM are as follows:
(i) Quality can and must be managed. (ii) Everyone has a customer and is a supplier. (iii) Processes, not people are the problem. (iv) Every employee is responsible for quality.
It has four main components: quality planning, quality assurance, quality control and quality improvement.
What are the components of total quality management TQM quizlet? ›1) leadership; (2) strategic planning; (3) customer and market focus; (4) measurement, analysis, and knowledge management; (5) workforce focus; (6) process management; and (7) business results.
What are the 5 stages of TQM? ›- Commitment and Understanding from Employees. ...
- Quality Improvement Culture. ...
- Continuous Improvement in Process. ...
- Focus on Customer Requirements. ...
- Effective Control.
- Produce quality work the first time.
- Focus on the customer.
- Have a strategic approach to improvement.
- Improve continuously.
- Encourage mutual respect and teamwork.
- Engagement of people.
- Customer focus.
- Leadership.
- Process approach.
- Improvement.
- Evidence-based decision making.
- Relationship management.
A quality management process or QMP is a formalized procedure through which the quality of work is thoroughly maintained and processed throughout any project.
What are the types of quality management systems? ›
Four types of quality processes are prominent in many industries: ISO 9001, AS9100, Six Sigma, and CMMI. Choosing one depends on its fit to the industry and the understanding of the particular QMS by both employees and customers.
What are the six 6 main mandatory quality procedures? ›Six procedures are- Control of Documents, Control of Records, Internal Audit, Corrective Action, Preventive Action, Control of Non Conforming Products.” Six procedure are- Control of Documents, Control of Records, Internal Audit, Corrective Action, Preventive Action, Control of Non Conforming Products.
What is the importance of TQM? ›TQM provides the quality assurance that customers will get what they expect, as well as a process for managing unsatisfied customers, make needed corrections and prevent similar reoccurrences.
What makes a good quality management system? ›Quality management systems should address an organization's unique needs; however, the elements all systems have in common include: The organization's quality policy and quality objectives. Quality manual. Procedures, instructions, and records.
What are the basic principles of total quality management quizlet? ›it provides both a management process for improvement of quality in all aspects of work. customer focus, management commitment, training, process capabilityy and control, measurement using quality- improvement tools.
What is total quality management TQM )? Quizlet? ›Total Quality Management (TQM) A management philosophy and approach that focuses on processes and their improvement as the means to satisfy customer needs and requirements.
Which of the following is an essential component of total quality management? ›Some of the important elements of total quality management are: (i) Management's commitment to quality (ii) Customer satisfaction (iii) Preventing rather than detecting defects (iv) Measurement of Quality (v) Continuous improvement (vi) Corrective action for root cause (vii) Training (viii) Recognition of high quality ...