Total Quality Management CONCEPTS, PRINCIPLES AND IMPLANTATION

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Total Quality Management (TQM) is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs.

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<p>THE EFFECTS OF LEADERSHIP ON PERSONNEL PERFORMANCE </p> <p>TOTAL QUALITY MANAGEMENT: CONCEPTS, PRINCIPLES AND IMPLANTATION BY</p> <p>OLOWU DAUDU Y. MALACHYDEPARTMENT OF BUSINESS ADMINISTRATIONFACULTY OF ADMINISTRATION AHMADU BELLO UNIVERSITY, ZARIA</p> <p>Being a Paper Presented at a Seminar Organised by the Department of Business Administration, Faculty of Administration,Ahmadu Bello University, Zaria10th July, 2000 INTRODUCTION</p> <p>Total Quality Management (TQM) is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations. TQM is, thus a management strategy aimed at embedding awareness of quality in all organizational processes. It is a structured system for satisfying internal and external customers and suppliers by integrating the business environment, continuous improvement, and breakthroughs with development, improvement, and maintenance cycles while changing organizational culture.</p> <p> TQM is as well a method by which management and employees can become involved in the continuous improvement of the production of goods and services - a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. Indeed, giving a name to a broad set of principles, methods, and tools as described above can be inherently misleading and limiting. Nonetheless, a word-by-word examination of the term will provide further insight into the meaning of the TQM concept.</p> <p>Total: Suggests full commitment of everyone in the organisation and a coverage of every aspect of all processes.</p> <p>Quality: Means continuously meeting customers requirements. Thus quality is ultimately defined by the customer. Organisations must become cognizant of the three levels of quality, namely;-</p> <p>(i) Must be quality - meeting requirement</p> <p>(ii) Expected quality - meeting expectations.</p> <p>(iii) Exciting quality - exceeding expectation</p> <p>Must be (specifications) Quality: This level of quality can excite, cause indifference or dissatisfy because the customer expressly specifies his requirements. For example, a customer orders for a 600v APC brand of UPS and is supplied with a 600v Mercury brand, with the explanation that the two perform the same function.</p> <p>Expected Quality: This level of quality does not excite the customer, but if lacking can cause deep dissatisfaction. Whilst the customer will not tell or ask for it, he expects it. Usually the customer is indifferent to this type or level of quality unless disappointed. Every bank customer expects the banking hall to be cool and comfortable, not hot and humid.</p> <p>Exciting Quality: This level of quality excites because it is unexpected. Customers cannot request for it because they are not aware of its existence or possibility. This level of quality encourages customer loyalty. However, once experienced, an exciting quality becomes expected.</p> <p>Management:Implies an active process led from the top. The usage of this term is intended to reflect the viewpoint that, cetris paribus, 85% of the problems are caused by the system and that only management can correct the system problems. Thus, quality can and must be managed.</p> <p>From the foregoing explanation of its constituent terms, Total Quality Management can be defined as the combination of people and systems, working harmoniously together for the ultimate benefit of the customer.</p> <p>Total Army Quality (TAQ)</p> <p>The concept of TQM is applicable to the military establishment as it is to the Business Environment. Total Army Quality is the Armys integrated strategic management approach for achieving performance excellence. TAQ cultivates incremental and breakthrough improvement, innovation, continuous learning and change, and provides avenues to recognize those who strive for excellence. </p> <p>BASIC CONCEPTS OF TQMtc \l2 "BASIC CONCEPTS OF TQMTQM is founded on a number of basic and extremely important concepts. These concepts or principles are built around the customer, quality and employees. They include the following:</p> <p>1. Everyone has a customer.</p> <p>2. Everyone is responsible for quality.</p> <p>3. Focus on preventing problems not fixing them.</p> <p>4. Team work.</p> <p>5. Processes fail not people.</p> <p>6. Top Management must lead.</p> <p>7. Middle management must support.</p> <p>8. Focus on process and systems.</p> <p>9. Know the cost of quality.</p> <p>10. Zero defects.</p> <p>Everyone has a CustomerTQM embraces more than the external customer. We all do not work in isolation; work has no value unless it is delivered to someone else. So we are as much customers as we are suppliers of any service or product. A customer is anyone to whom you provide a product or service. A supplier is anyone who provides a product or service to a third party.</p> <p>If you fail to satisfy your external customer - he has a choice to go somewhere else for an alternative service. If you fail to satisfy your internal customer, then it is most likely the service provided has to be done again to meet the required expectation or specification, thus costing more. In either case - the company loses!</p> <p>Everyone is responsible for QualityEveryone - everyone must make a commitment to getting things right first time. To get everyone involved, you must provide the tools and techniques to analyse and drive out problems. These have to be taught at all levels in all functions if everyone is to participate. There is a need to develop the attitude and influence the culture of the organization by learning to put people first, caring for employees, creating goal congruence between leaders and those being led.</p> <p>Prevent Problems not fix themFire fighting is random strategy which is inefficient in the short run and grossly ineffective in the long run. There must be a structured approach to dealing with problems in organizations. This involves:</p> <p>-Finding root causes - dealing with core problems not the symptoms. These will entail the use of specific tools available in the quality field to assist in identifying root causes of problems.</p> <p>-Selecting the best solution.</p> <p>-Prevent reoccurrence by standardizing the solution or the new system or process devised.</p> <p>Team WorkPeople work in teams either naturally within the same department or across departments and functions in recognition of the specialized role they all play. The solution for effective work processes is through teamwork. This is based on everyone understanding each others needs.</p> <p>Processes Fail Not PeopleEverything we do is a process, which is the transformation of a set of inputs into the desired outputs. Processes should be managed through a strategy of prevention, rather than detection. In reality nobody goes to work to make mistakes unless the system makes it possible. Indeed, majority of mistakes occur at work because the process has failed. The objectivity of TQM in this area is to design robust processes that make it difficult to fail. TQM ensures that management adopts a strategic overview of quality and focus on prevention, not detection of problems. Using flow charts for example, areas of possible failure can be highlighted and possibility of failure reviewed.</p> <p>Top Management Must Lead the Process</p> <p>TQM must start at the top where serious commitment to quality must be demonstrated. Indeed, TQM now challenges managements traditional role to plan organize and control and now demands that management should now empower, coach, develop and encourage organization wide participation in running the business. This demands commitment and leadership from management at all levels. Management must realize that with the advent of the knowledge worker, he is no longer the only solution provider.</p> <p>Middle Management Must SupportMiddle management also has a key role to play in communicating the message. Traditionally, middle managements role is that of supervisor, maintenance of quality, setting priorities and developing staff. In TQM focused organization, all these remain, in addition to the responsibility for the continuous improvement of every aspect of processes under his control.</p> <p>Focus on Improving Processes and SystemsPeople work in chains of activities that collectively form business processes. TQM focused organizations seek to improve the process of delivering a service or product than individual or departmental performance or competence. TQM philosophy encourages a supportive and encouraging organization culture where people will innovate and improve these processes. Unfortunately, few organizations have a process by which employees are encouraged or enabled to improve their work-giving rise to the frequent system failures that is prevalent in most organisations. System failure is said to occur when the link in the chain breaks i.e. the flow of work is disturbed.</p> <p>We have all learnt to live with and accept failures. Systems failures have become standard because we view each step or function of our activities and not the total process. Sub-optimal performance at functional or unit level is viewed as acceptable, the accumulation of such breakdowns at every step ends up in global failure.</p> <p>Know the Cost of QualityThe cost of quality is a misnomer. Cost of quality is what it costs an organization to avoid, review and measure all those activities devoted to consciously improving quality.</p> <p>Prevention:Costs to ensure that things get done right time first time. The whole philosophy of TQM hinges on prevention.</p> <p>Appraisal: Cost of inspecting, testing another checking of products or services.</p> <p>Internal failure costs: Cost of putting things right before delivery to customer.</p> <p>External failure costs: Cost of putting things right after delivery i.e. warranty costs.</p> <p>Exceeding requirements: Cost of providing a service or product, which a customer does not need.</p> <p>Lost opportunities: Cost of an uncompetitive product or service.</p> <p>Focus should be on prevention, which drives out failure costs. Focusing therefore on processes instead of inspection should reduce costs associated with inspection as product or service levels improve.</p> <p>Zero DefectsZero defects is a standard of performance which insists on doing the job right first time. It then follows that if it can be done right first time, it can be done right all the time. </p> <p>IMPLEMENTATION PRINCIPLES AND PROCESSES</p> <p>Many companies have difficulties in implementing TQM. Surveys by consulting firms have found that only 20-36% of companies that have undertaken TQM have achieved either significant or even tangible improvements in quality, productivity, competitiveness or financial return. As a result many people are skeptical about TQM. However, when one looks at successful companies one finds a much higher percentage of successful TQM implementation.</p> <p>A preliminary step in TQM implementation is to assess the organization's current reality. Relevant preconditions have to do with the organization's history, its current needs, precipitating events leading to TQM, and the existing employee quality of working life. If the current reality does not include important preconditions, TQM implementation should be delayed until the organization is in a state in which TQM is likely to succeed.</p> <p>If an organization has a track record of effective responsiveness to the environment, and if it has been able to successfully change the way it operates when needed, TQM will be easier to implement. If an organization has been historically reactive and has no skill at improving its operating systems, there will be both employee skepticism and a lack of skilled change agents. If this condition prevails, a comprehensive program of management and leadership development may be instituted. A management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of change. An organization should be basically healthy before beginning TQM. If it has significant problems such as a very unstable funding base, weak administrative systems, lack of managerial skill, or poor employee morale, TQM would not be appropriate.5However, a certain level of stress is probably desirable to initiate TQM. People need to feel a need for a change. Experts address this phenomenon by prescribing the use of building blocks which are present in effective organizational change. These forces include departures from tradition, a crisis or galvanizing event, strategic decisions, individual "prime movers," and action vehicles. Departures from tradition are activities, usually at lower levels of the organization, which occur when entrepreneurs move outside the normal ways of operating to solve a problem. A crisis, if it is not too disabling, can also help create a sense of urgency which can mobilize people to act. In the case of TQM, this may be a funding cut or threat, or demands from consumers or other stakeholders for improved quality of service. After a crisis, a leader may intervene strategically by articulating a new vision of the future to help the organization deal with it. A plan to implement TQM may be such a strategic decision. Such a leader may then become a prime mover, who takes charge in championing the new idea and showing others how it will help them get where they want to go. Finally, action vehicles are needed and mechanisms or structures to enable the change to occur and become institutionalized. In this respect, the principles discuss above provide the needed platform for actualizing TQM.</p> <p>Deming's 14 points</p> <p>W Edwards Deming was an American statistician who was credited with the rise of Japan as a manufacturing nation, and with the invention of Total Quality Management (TQM). Deming went to Japan just after the War to help set up a census of the Japanese population. While he was there, he taught 'statistical process control' to Japanese engineers - a set of techniques which allowed them to manufacture high-quality goods without expensive machinery. In 1960 he was awarded a medal by the Japanese Emperor for his services to that country's industry.</p> <p>Deming returned to the US and spent some years in obscurity before the publication of his book "Out of the crisis" in 1982. In this book, Deming set out 14 points which, if applied to US manufacturing industry, would he believed, save the US from industrial doom at the hands of the Japanese.</p> <p>Although Deming does not use the term Total Quality Management in his book, it is credited with launching the movement. Most of the central ideas of TQM are contained in "Out of the crisis".</p> <p>The 14 points seem at first sight to be a rag-bag of radical ideas, but the key to underst...</p>