Definition§
Total Quality Management (TQM) is an approach to managing organizations that emphasizes the importance of improving the quality of products and services to meet or exceed customer expectations. TQM involves the continuous refinement of processes through inclusive, employee participation and a focus on continuous improvement.
Examples§
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Manufacturing Industry: A car manufacturer implements TQM by setting up a quality control unit that regularly checks the parts used in production. By systematically improving the parts’ quality through feedback loops and rigorous testing, the firm reduces the rate of defects and customer returns.
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Service Sector: A hotel chain employs TQM by continually training their staff on best service practices and gathering guest feedback to make improvements in service delivery. This approach leads to higher customer satisfaction and increased loyalty.
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Healthcare Providers: Hospitals use TQM techniques to streamline their patient care processes, reducing waiting times and improving the accuracy of diagnoses. Continuous feedback from both patients and staff helps to refine these processes further.
Frequently Asked Questions (FAQs)§
What are the main principles of TQM?§
The main principles of TQM are:
- Customer Focus
- Commitment by Management
- Employee Involvement
- Process Approach
- Integrated System
- Strategic and Systematic Approach
- Continual Improvement
- Fact-based Decision Making
- Communications
How does TQM benefit an organization?§
TQM benefits organizations by:
- Reducing waste and inefficiencies
- Improving product and service quality
- Increasing customer satisfaction and loyalty
- Enhancing employee morale and involvement
- Encouraging continuous improvement in all areas of operation
What is the role of employee empowerment in TQM?§
Employee empowerment in TQM involves giving employees the authority, resources, and skills to identify and solve quality problems. This leads to increased job satisfaction, higher morale, and a proactive attitude towards continuous improvement.
How is TQM different from traditional management practices?§
TQM differs from traditional management practices in its emphasis on quality in every aspect of the business process, its customer-centric approach, proactive problem solving, and perpetual process improvement, as opposed to periodic reviews and reactive improvement.
Related Terms§
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Kaizen Costing: A cost reduction approach that involves continuous, incremental improvements to existing processes and systems.
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Continuous Improvement: An ongoing effort to improve products, services, or processes.
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Employee Empowerment: Providing employees with the authority and responsibility to make decisions regarding their work activities.
Online References§
- The American Society for Quality (ASQ)
- Quality Management System Handbook for Product Development Companies
Suggested Books for Further Studies§
- “Total Quality Management: Key Concepts and Case Studies” by D.R. Kiran
- “Out of the Crisis” by W. Edwards Deming
- “Total Quality Management” by Besterfield, Dale H.
- “The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer” by Jeffrey K. Liker
Accounting Basics: “Total Quality Management (TQM)” Fundamentals Quiz§
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