TQM - Total Quality Management. Key elements, principles, benefits and implementation methods

Today, people take for granted that the items and services they consume should work well once they buy them. In fact, many industrial and post-industrial societies simply discarded what does not work. However, there was a time when quality and efficiency were not a priority for suppliers of goods and services. Intensive attention to quality began to develop to a large extent after the Second World War, in particular, in the 1980s, in response to a market that rejected the cheapness of manufacturing. In this connection, consumer demand increased for durable goods, which took into account human needs.

This article will examine the history of one of the outstanding management principles - General Quality Management (TQM). Readers will learn how this can help make a profit, and nonprofits will become more efficient and economical. In addition, other industry areas will be reviewed and TQM compared with quality philosophies and methodologies such as Six Sigma and Kaizen.

Definition of the term

TQM as universal quality management describes a system in which a company makes progress through adherence to customer requirements. The organization meets these requirements when it allows each employee in each department to maintain high standards and strive for continuous improvement. Total quality management is the precursor to many quality management systems such as Six Sigma, Lean and ISO.

Global quality management is a company-wide initiative to engage everyone in doing the right thing for the client.

Term basics

TQM as universal quality management is an indicator of the level of acceptability of a product or service. Its management consists of four parts of a quality management system in process management to achieve maximum customer satisfaction at the lowest total cost for the organization.

The system is divided into:

1. Quality planning.
2. Quality control (defect prevention).
3. Quality control (which includes product verification and other elements such as competency).
4. Quality improvement.

Correct historical circumstances influenced the formation of the current structure. At that time, new methods of mass production were introduced, for example, the Ford conveyor line and the urgent demand for materials during the two world wars for this particular innovation. The military, to some extent, demanded that every product they purchased was good, because soldiers live literally on the quality of the products that factories process and produce. Regardless of whether it was dry rations or cartridges, these wars spurred a revolution in production to focus on the idea of ​​achieving high results.

TQM as global quality management is regulated by many analytical tools. Statistics play an integral role in this process, since the ability to predict the result is much cheaper than checking the details. Moreover, sometimes an inspection is simply inconvenient. For example, a fast food restaurant should know that every hamburger is of good quality, without interrupting their preparation.

General principles

The concept of universal quality management TQM does not have a single generally accepted knowledge, as, for example, for the Project Management Group (PMBOK). Similarly, there are no prescribed actions to implement TQM methods and tools. Organizations are free to deploy and adapt TQM as they wish, giving way to many methodology definitions.

Despite these problems of standardization, generally accepted principles can be described:

1. Customer satisfaction.
2. The obligation of the employee to the consumer, carried out using training mechanisms and offers.
3. Factual decision making. Teams collect data and process statistics to ensure that the work meets established requirements.
4. Effective communications. There should always be an open dialogue within the entire organization.
5. Strategic thinking. Quality should be part of the organization’s long-term vision.
6. Integrated system. A common vision, including knowledge of adherence to the principles of quality, allows everyone to connect to the company. Even suppliers are an important part of the system.
7. Deconstructing each action into processes, finding and repeating the best processes.
8. Continuous improvement. Every employee should always think about how best to do their job.

The overall goal of the system is as follows: "It is necessary to do everything correctly, controlling and developing each process separately." TQM's global quality management concept recognizes the development and planning of each step-by-step action. At the same time, not only the management team of the company is involved, but also its employees.

History of TQM

There is no single agreed source for global quality management. Some experts believe that this came from two books by first-class thinkers of quality management: “Full Quality Control” by Armand Feigenbaum and Kaoru Ishikawa “What is General Quality Control? The Japanese Way. ” Others say the terminology came from the initiative of the United States Navy to accept the recommendations of management guru William Deming, who they called general quality management. The method did not receive wide distribution until the 1980s.

The TQM universal quality management system dates back to the beginning of the 20th century and to the principles of scientific management by Frederick Taylor, who advocated a consistent approach to fulfilling tasks and checking completed work to prevent defective products from leaving the store. Further innovations appeared in the 1920s with the development by Walter Shechart of statistical control processes that could be applied at any point in the production process to predict the level of quality. It was Shehart who developed the control chart used today for management with Kanban and Agile.

During the 1920s and 1930s, Shehart’s friend and ward, William Deming, developed the TQM total quality management system theory, which he ultimately used to help the US Census Department in the early 1940s. This was the first use of statistical process control in the non-productive field. Further, a tool created on the basis of theory was used in other industries throughout the country for many years. However, in parallel, other mechanisms were created that helped form a new system of standards.

The emergence of the method in Japan

TQM's Total Quality Management Methodology is a complex process that has been created for decades in different countries. After the war, other American quality theorists, including Deming, who achieved hero status in Japan, advised Japanese industry how to improve processes and results to restore their war-torn economy. At that time, the term made in Japan was synonymous with TQM. Already in 1945, seers such as electrical engineer Homer Sarason talked about controlling the change process and monitoring to get better results.

As a result, in the 1950s, TQM became the basis for Japanese production. Quality applies not only to management, but also to all levels of the company. In the 1960s, quality circles began to appear in Japanese jobs to allow employees to discuss problems and consider solutions that they then presented to management. Starting from the factory, quality circles extend to other functional departments. A system-wide emphasis on this can also provide a clue to the origin of a phrase of universal quality.

System Development in the USA

The TQM general quality management methodology is also a compiled set of measures to optimize production. For the first time, scientists from America started talking about this. By the 1970s, the term working in the USA was no longer a sign of pride. Since the end of World War II, the main efforts of American factories have been to produce a large number of items, maintain production schedules and save money. Application and durability rarely mattered until problems with a lack of product quality reached a high level. As Japan successfully challenged the United States for industrial leadership, American industry has now taken a page from Japan's quality improvement book. There is a new interest in quality management based on the work of Shehart’s students such as Deming, Joseph Juran and Kaoru Ishikawa in Japan. Powerful businessmen like Philip Crosby have defended this trend.

There have been many attempts to implement the TQM TPM system of total quality management. For the first time, the model proved to be an effective management tool in the military industry. Despite the fact that the increase in demand, apparently, occurred exclusively within the walls of industry, the main outline of the concept is largely related to the design of the navy of the 1980s, which used the Shewhart PDKA model (plan, do, check, act) and deming. In the Navy's guidelines, thoughts were formulated, according to which the requirements of customers should determine the quality and continuous improvement, should apply to the entire organization. The success of the navy through methodology led to the adoption of TQM by other armed services, such as the army and the coast guard, and ultimately the rest of the US government. Congress established the Federal Institute of Quality in 1988 to emphasize the need for quality management in business and organizing rewards for successful implementations.

Worldwide TQM Practice

Companies around the world have begun to pay attention to TQM TPM global quality management. Further, the system began to be distributed and change its appearance. Quality management began in production, and TQM, like the subsequent methodologies, adapted well to finance, healthcare, and other areas. The list of leading companies that have adopted TQM includes Toyota, Ford and Philips.

Quality TQM as a planning model began to integrate into many companies. Countries around the world such as Germany, France, the UK and Turkey have set TQM standards. But by the 1990s, TQM had been replaced by ISO (International Organization for Standardization), which had become the standard for most of continental Europe and another 1980s methodological response to Six Sigma quality problems. However, TQM principles form the basis for most of ISO and Six Sigma. For example, PDCA appears as part of the Six Sigma DMAIC structure (defines, measures, analyzes, improves, controls). And in the 2000s, the ISO governing body recognized TQM as the foundation of the philosophy. TQM lives in data-driven methods to control all production processes.

The influence of William Deming on the system

Most of our current understanding of TQM's value and commitment to quality is traced by William Deming's theory. This American statistician, engineer, and management consultant has laid many foundations for using statistics in production and work management. He introduced statistical methods to the US Census Bureau in the early 1940s, noting that they were first used in the business or services sector. During World War II, he told American business and government about statistical methods to help plan wartime production. After the war, Deming was hired by General Douglas MacArthur to advise Japanese officials to use census models to assess military damage and a recovery plan. Deming distinguished itself from many occupation forces, showing a sincere interest in Japan and its culture. Perhaps it is not surprising that the Japanese revered him for his role in the emergence of the Japanese economic miracle.

The overall quality of TQM has influenced the development of markets in Asia. Since Japan did not have abundant natural resources, executives saw the export of goods around the world as the main path to financial success. Their post-war reputation was a particular challenge to this goal. Deming was invited to Japan by the Union of Japanese Scientists and Engineers (JUSE), whose president was Kaoru Ishikawa, to discuss quality management, an idea that formed the basis of what later became known as TQM. Japanese products were gradually recognized as the best for convenience and durability. In 1960, Deming received a medal of merit from the Emperor of Japan on behalf of Japanese industry. In the 1970s, Japanese exports exceeded US exports.

The universal quality of TQM was later applied to compare different categories of goods from producer countries. As a result, American products have gained a reputation for poor design and defects. Back in 1940, Juran noted that the production of goods and meeting deadlines took precedence, and quality was allocated for final inspection. Deming believed that once the war was over, the US industry would lose interest in statistical methods of achieving quality. Ironically, it was Deming in the late 70s and early 80s who introduced to the United States and Great Britain the principles of quality management that he taught in Japan 30 years ago. In 1967, he published an article, “What happened in Japan?” in the journal "Industrial Quality Control". Professionals believe this is an early version of its famous 14 points and PDCA cycle.

The components of TQM at each stage began to be traced in other control systems thanks to Deming. Although he is well known in academia for quality control, the scientist achieved greater significance when he gave an interview for the 1980 NBC documentary “If Japan Can, Why Can't We?”. In the program, Deming emphasized that if profit from productivity is made, this will happen only because people work wisely. This is the total profit, and it is multiplied several times.

The documentary featured another act in Daming's life that described him as a quality consultant for American business. He gained a reputation for being rude and fearless in the presence of senior leaders. Legend has it that he told Ford directors that 85% of quality problems were caused by poor management decisions. Some companies have rejected it. However, on his advice, Ford conducted user surveys before designing and building the Ford Taurus in 1992. The advantages of TQM were obvious, and it was this car model that was in demand for many years.

In his 1986 book, Out of the Crisis, the scientist examined 14 control points. The following year, at the age of 87, he was awarded the National Technology Medal. In 1993, the year he died, he founded the Deming Institute.

Why the method is important for organizations

Elements of the TQM strategy become effective not when the organization creates a specialized quality department, but when it includes the entire company in pursuit of such a result. An example is the circle of quality in which workers directly involved in the brainstorming process find solutions. People are an incredible resource that is often underutilized. Management does not recognize the values ​​they bring to the daily workplace. Employees know how to fix problems.

In addition to using your own resource, implementing the philosophy and development of TQM can help the organization:

1. Ensure customer satisfaction and loyalty.
2. Provide increased revenue and increased productivity.
3. Reduce waste and stockpiles.
4. Improve the design.
5. Switch to changing markets and regulatory environments.
6. Increase productivity.
7. Improve the image of the market.
8. Repair defects.
9. Improve work safety.
10. Improve the morale of employees.
11. Cut costs.
12. Increase profitability.

Based on existing methods, it is possible to significantly improve not only the work of the team, but also to accelerate it. For this, the company can select the necessary structure. The presented TQM elements are common. Depending on the type of company and its product, not all of the listed results may be achieved.

Implementation costs

The fundamental principle of TQM is that the cost of completing tasks for the first time is much less than the potential cost of reuse. There are also residual losses when customers abandon products and brands for quality reasons. Some companies see quality as a value that cannot be recouped. Huran, Deming, and Feigenbaum were of a different opinion.

There are four main categories of costs:

1. Assessment Costs. The costs cover verification and testing throughout the entire production cycle. This includes verifying that the materials received from the supplier comply with the specifications and ensure product acceptability at every stage of production.
2. Preventive costs. Costs include the proper setting of jobs to improve efficiency and safety, as well as training and planning. This type of expense also includes reviews. Preventive measures often receive the least distribution of the company budget.
3. External costs. This category refers to the cost of issues following the release of a product on the market. These may include warranty issues, product recalls, returns and repairs.
4. Internal cost of failure. Internal disruption is the cost of problems before products reach customers. Examples of internal failures include malfunctioning machines that cause delays and downtime, poor materials, product waste, and structures that require rework.

Existing models and rewards for them

The principles of the TQM system do not have a single, universally valid body of knowledge. Organizations are trying to apply in their production systems already drawn up to achieve the proper level of quality.

The Deming Application Prize was created in Japan in 1950 by the Union of Japanese Scientists and Engineers (JUSE) to recognize companies and individuals around the world for their successful efforts to implement TQM. Among the winners were Ricoh, Toyota, Bridgestone Tire and many others.

Congress established the Malcolm Baldridge National Quality Award (MBNQA) in 1987 to raise awareness of the quality of TQM models. The National Institute of Standards and Technology (NIST) administers the award.

He gives it to large and small companies and non-profit organizations that demonstrate excellent performance in the following areas:

1. Providing growing customer value and stakeholder commitment to organizational sustainability.
2. Improving overall organizational performance and capabilities.
3. Implementation of organizational and personal training.

The non-profit European Foundation for Quality Management (EFQM) was established in 1989 to provide a quality structure for organizations throughout Europe and Russia.

They support the EFQM Excellence Model, which covers the following requirements:

1. Adding value to customers.
2. Creating a sustainable future.
3. Organizational capacity development.
4. Use of creativity and innovation.
5. Comparison with vision, inspiration and integrity.
6. Management with maneuverability.
7. Interest in the talent of people.
8. Saving outstanding results.

Participating organizations may participate in training and assessment tools and may qualify for the EFQM Excellence Award. The International Organization for Standardization (ISO 9000) publishes guidelines and specifications for parts, processes, and even documentation to ensure that quality is consistent with the entire company, organization, and system.

System management in the organization

TQM processes, like PDCA, are at the core of many 20th century quality assurance efforts. PDCA began in the 1920s as the concept of engineer and statistician Walter Shekhart. It was originally called PDSA (plan, do, study, act), widely distributed by Demin, who called it the Shekhart cycle. Now it is often called the Deming cycle.

Analysis of the formulation of the PDSA method:

1. P-Plan - The planning phase is the most important. This is where management, together with its colleagues, identifies problems in order to see what really needs to be addressed, namely, everyday things that can happen, but which the management does not know about. Therefore, they are trying to determine the root cause. Sometimes employees do research or high-level tracking to narrow down the problem.
2. D-Do - The execution phase is the decision phase. Strategies are being developed to address those issues that were identified at the planning stage. Employees can implement solutions, and if the solution does not work, it returns to the drawing board. Unlike Six Sigma, it has less to do with measuring profits and more with what employees think about work.
3. S-Study - verification phase - before and after. So, after the changes are made, it becomes clear how they work in practice.
4. A-Act - the current stage is the presentation or documentation of the results so that all employees see how this was done and what the results were. This is a new way, and this is what you should pay attention to.

The introduction of TQM based on this principle made it possible to develop other methods through the system. In 2000, ISO recognized PDCA as a fundamental method. He reappears in Six Sigma as the DMAIC method (defines, measures, analyzes, improves and controls). Walters notes that TQM is much more people-oriented, and Six Sigma is a process.

Where TQM, KAIZEN and SIX SIGMA are used

While TQM is used for employees as a source of ideas and solutions that can help companies, Six Sigma's process focus and ongoing measurements contribute to data-driven decision making, which offers undeniable benefits.

Based on TQM methods, most companies want to develop brand loyalty, even if their product essentially coincides with a competitor. If TQM is used, management hopes the product will be of better quality, so customers should return. With TQM, organizations will have to wait until customers confirm that this product is really good. With Six Sigma, the company does not know and does not assume how good the product is, in fact, it already knows this. If a firm identifies its market correctly and its product is best suited for a niche, it knows that it has the best product in terms of the process. This leads to a longer relationship with customers.

If Six Sigma can offer final results for an existing process, and the TQM concept can help achieve results over time, the question is where Kaizen fits. Kaizen is a Japanese word for a philosophy of improvement.

It includes 5 principles: seiri, seiton, seiso, seiketsu and shitsuke. In translation, they mean - sorting, ordering, brightness, standardization and support. Kaizen is seen more as a philosophy of organizing workspace and place, on how to relate to work and colleagues.

The TQM quality system and Kaizen events are improvement efforts involving small teams that spend little time, usually about a week, reviewing and testing improvements. The team then presents its findings to management. Management periodically reviews decisions so that they continue to benefit the team.

Like TQM, Kaizen is committed to results, the whole company is responsible for quality and that improvement must be continuous.

Seven Essential Controls

According to experts, the basic TQM strategies and controls allow anyone to collect data to cover most problems and identify possible solutions.

Here are seven basic TQM tools:

1. Checklist. This is a preliminary form for collecting the same type of data over time. Therefore, it is only useful for frequently repeated data.
2. Pareto chart. The chart shows that 80% of the problems are related to 20% of the causes. This helps determine which problems are categorized.
3. Diagram of causes and effects or diagram of Ishikawa. This chart allows you to visualize all the possible causes of a problem or effect, and then classify them.
4. Control chart. This chart is a graphical description of how processes and results change over time.
5. The histogram shows the frequency of the problem, as well as how and where the results cluster works.
6. Axis chart. This chart displays data on the x and y axes to determine how the results change as the variables change.
7. Flow chart or stratification chart. This is an idea of ​​how various factors are combined into a process.

Main participants

To succeed with a general quality management program or any other improvement methodology, managers need to understand the goals of quality improvement for their product or company. They should then communicate these goals, despite the benefits of TQM, to companies, as employees play a vital role, contributing to day-to-day knowledge of product development and processes.

Suppliers are an important part of the system. Companies must test new agents to ensure that materials meet standards.

Customers are the most significant part of management. After all, they are the cause of TQM's overall quality management system. In addition to the obvious feedback provided by the sales team, customers - users of products or services - provide information about what they want from the product in the future.

Issued certificates to organizations

Since its heyday in the 1990s, TQM has been largely replaced by Six Sigma and ISO 9000. The fact is that Lean and Six Sigma have a very specific set of methods to effectively achieve these goals. ISO is a universal standard, and it is extremely clear to companies what they must do to achieve it.

Obtaining one of these types of certificates expands the powers of the company and distinguishes it from competitors. Europe and Russia adopted the international ISO standard in the 1990s. Today, formal teaching of TQM as a universal quality management is rare. Most users of the TQM system are organizations located in Japan and the United States. Therefore, already at the initial stages of the formation of a new management system, management and employees should decide on a common model that would work more efficiently in the specific market where the manufactured products will be delivered.