Total Quality Management (TQM)

• Total Quality Management (TQM)


  A management philosophy which ensures that quality is maintained in all areas of the organization in order to meet customers' expectations. It is people focused and aims to satisfy the firm's customers continually.
• TQM


  • The success of the firm is dependent on whether or not it can provide quality goods and services to its consumers
  • Quality has to be the concern of every stakeholder who has an impact on the organization
  • Efforts by management to maintain quality can prove futile if all stakeholders are not attempting to maintain quality
• The desire to achieve quality in all spheres of business has given rise to the philosophy of Total Quality Management
• Objectives of TQM


  • Customer satisfaction
  • Enhancement of performance in terms of quality, speed or response, cost and flexibility
  • To foster a customer-focused organization instead of one focused on functions
  • Improvement in the business's flexibility and ability to adapt to the changing environment
  • To create an organization that is people focused and involves stakeholders in all its activities
  • To empower workers to work in teams focused on quality
  • To produce a product with zero defects
• Main Features of Total Quality Management (TQM)


  • Consumer inputs - TQM requires the full commitment of firms to their customers, as they are very important to quality improvement. Information must be gathered frequently about customers' needs and expectations. When this information is received the firm must adjust its products or processes to cater to the desire of its customers.
  • Zero defects - This is a very important feature of TQM. Since firms aim to satisfy their customers totally, they have to produce a product that is free from defects. For this to be achieved, it will take tremendous effort on the part of every stakeholder of the firm, from supplier to customer.
  • Teamwork/Quality circles - Teamwork has become the most effective method used in TQM to solve problems. Empowering workers can help to build trust and morale throughout the organization. Teamwork also helps to improve communication and cooperation between management and subordinates. Teamwork is important to TQM since the suggestions for repairing problems with quality will come from the very people who produce the product.
  • Control strategies - A good and effective TQM system is one where there are proper control strategies in place to monitor quality and the processes that are used. Total satisfaction of customers will only be achieved if the business has control over the factors that influence the quality of the product. Such factors may include the workforce, technology and materials. The monitoring of quality and business processes can help the firm to identify areas that can be improved.
  • Company culture and policies - TQM is most likely to be successful where it is infused in the culture of the firm. It has to be fully supported by top management and filtered down throughout the organization. There must also be a culture of accountability among every individual in the organization.
  • Quality chains - This refers to the relationship between suppliers and customers (both internal and external). Quality chains can be broken at any time if a person or piece of equipment fails to produce goods in line with the requirements of customers.
• The role of the customer in TQM

  • The customers are the main purchasers of the products and their views should be considered in quality management. The firm should continuously assess customers' needs and seek to satisfy these needs. Customers' needs can be ascertained through regular market research. Customers and consumers are able to make suggestions to the firm on how to improve quality to meet their needs.
  • Customers tend to purchase the product that they believe has the highest quality and will give them value for money.
  • TQM places so much emphasis on customer satisfaction that complaints from customers should be treated with care and a desire to correct any problems.
• Factors for the success of TQM

  • Involvement of trade unions in the planning process
  • There needs to be a strong sense of job security-this could make it easier for workers to buy into the quality initiatives proposed by the firm
  • Constant training of employees
  • The financial resources of the firm
  • Involvement of employees in the decision-making process