Chapter 01 Introduction:

TQM: is an integrated organizational approach

in delighting customers (internal & External) by
meeting their expectations on a continuous
basis through everyone involved with the
organizational working on continuous
improvement in all products/processes along
with proper problem solving methodology. To
Deliver highest value at lowest cost is the main
objective of TQM
Significance of the term TQM: Total: the
responsibility for achieving Quality rests with
everyone a business no matter what their
function. Quality: the primary task of any
business is to understand the needs of
customer, delver the product/service at the
agreed time, place and price, on every
occasion. Management: top management lead
the drive to achieve quality for customers, by
communicating the business vision & Value to
all employees, ensuring the right business
process are in place, introducing & maintaining
a continuous improvement Culture.
Scope of TQM: TQM is the foundation for
activities, which includes. |Commitment by Top
Mgt & all employees | Meeting Customer
Requirements | Reducing Development cycle
time | Just in Time/ Flow Manufacturing |
Improvement Teams | Reducing Product/Service
costs | System to facilitate improvement |
Employee involvement and empowerment |
Recognition & Celebration | Challenging
Quantified goals & Benchmarking | Focus on
Processes / improvement plans. This mean that
TQM must be practiced in all activities, by all
personnel, in manufacturing, Marketing,
Engineering, R&D, Sales, Purchasing, HR etc.
Principles of TQM: | Produce quality work the
first time. | Focus on the Customer | Have a
strategic approach to improvement | improve
continuously | encourage mutual respect &
teamwork
The following are some of the features of TQM:
1. Customer Focus: - - TQM Palaces emphasis in
meeting the requirement of both the internal as
well as the external customer. In order to meet
the requirements for the external customer, it
is necessary to meet the needs of the internal
customer. The initial focus should be on
meeting needs of internal customer before an
attempt is made to meet the requirements of
the external customers.
2. Continuous Process: - TQM is a continuous
process. Constant and continuous efforts are
made to improve the quality, and to reduce
internal costs. Quality improvement helps the
organisation to face the challenges of the
competitors and to meet the requirements of

the customers. TQM is a process which goes on

forever, because at no time the quality can be
100% right. There is always a possibility for
new and better way of doing things.
3. Defect-free Approach: - TQM place emphasis
on the defect-free work most of the time. The
defect free approach is phrased in various ways
as right first time, working smarter or zero
defects.
4. Employees Involvement: - in TQM everyone
is involved in the process from the
management director to the junior clerk or
worker in the organisation. It is not just
manufacturing people, but also the accounting,
finance, marketing, and even the canteen
people are involved in the TQM process.
5. Recognition and Rewards: - Recognition and
rewards is an integral part of companys TQM
Programme. Positive reinforcement through
recognition and reward is essential to maintain
achievement and continuous improvement in
quality.
6. Synergy in Team Work: -The Japanese are
great believers in synergy (to work together).
Engineers, technicians, and workers look upon
themselves as equals and communicate easily
as they work side by side. They create what
professor Okuda has called a synergetic
Partnership.
7. Techniques: - TQM can take place by
following various techniques such as quality
circle, value engineering, statistical process
control, etc. Through such techniques it is
possible to improve systems and procedures.
8. System Approach: - TQM is a system
approach to managing the business and
improving the performance. Without the total
commitment on the part of chief executive
officer and his senior executives, TQM cannot
take off to a good start.
QUALITY AND BUSINESS PERFORMANCE:
strategic Planning Institute of Cambridge
Massachuestts study the relationship among
Quality, Profitability, & market Share on aprox
3000 companies. and concluded; () Quality
drives market share. When quality Is superior &
large market share are present profitability is
guaranteed. () relative perceived quality and
profitability are strongly related. Either the
profit is measures on Sale or Return on
investment business with superior quality
outclass the inferior quality.() Quality can also
reduce costs & provide aditioanl competitive
edge. () as crossby says quality is free
Quality Cycle:

management consider that his sub-ordinates

are competent and they will handle all the
situation, they stuck to organizational chart.
Top mgt must answer each & every question of
employee. eg. How to handle the new adopted
technology? Training must not be avoided in
order to cut the cost when employee are well
trained it will automatically cut the cost as
many top mgt put priority on budget. Top mgt
must empower their employee.

The high quality reward the org the following

rewards: 1. Greater Customer Loyalty 2. Market
share improvement 3. High Stock prices 4
Reduce service cost. 5 Higher prices 6. Greater
profitability.

Service Quality vs Product Quality:

Service Qulaity: service org produce
intangible products that must be
experience. Quality often defined by
perceptional factors like courtesy,
friendliness of staff, promptness in
resolving complaints, atmosphere, waiting
time, consistency
Manufacturing quality focuses on
tangible product features ie. Conformance,
performance, reliability, features,
durability, serviceability etc.

Communication:
Communication is defined as the exchange of
information and understanding between two or
more persons or groups. Note the emphasis on
exchange and understanding. Without
understanding between sender and receiver
concerning the message, there is no
communication.
According to Peter Drucker, guru of
management t, The communications gap
within institutions and between groups in
society has been widening steadily to a point
where it threatens to become an unbridgeable
gulf of total misunderstanding. Having said
that, he provides an easily understood and
simple approach to help communicate the
strategy, vision, and action plans related to
TQM.
The simple model is as follows:

Service Quality vs Product Quality: in

past decades quality was view as

manufacturing problem but now quality is also
an issue for service as well. TQM relates not
only to the product but to all the services that
accompany it as well.as both are functions of
an org. defining and controlling quality in
service is more difficult than product. Service
industry share unique characteristics as: 1. The
delivery person/org behavior affect the service
quality. 2. The image of person/org shapes the
perception of customers. 3. The measure of
output is difficult to report. 4. Quality can mean
different things to different people given the
same experience. 5. The customer visit the
premises for final visit. 6. Adjusting the control
system while customer visiting.
Attitude & involvement of top
Management: there is tendency that
managers focus on technology and hard assets
& avoid taking care of soft assets (Human
Resources, org competence). For many top

Peter Drucker Communication Principles: 1.

Message should be in recipient language 2.
Cleary convey the perception of Receiver 3.
Communication must be from recipient
(Employee to employer) may be more effective
(from Bottom to Top). 4. Information we encode
same will be decode by the receiver. 5.
Downward communication dont have any
benefits bcoz it carries only orders 6.
Employees should be encourage to set
measurable goals.
Larry Appley Ex-professor develop the effective
communication model. In which the direction of
communication is upward, Receipient
(subordinates) become senders and
Senders(Boss) become Receiver.

culture, it has to be the fabric of the

organization.
Embedding a culture of Quality: the basic
vehicle for embedding an org culture is a
teaching process in which desired behaviors
and activities are learned through experiences,
symbols & explicit behavior. These components
& other mechanisms summarized as:

Larry Appley Communication Principles: 1.

T&D is important for both employee & mgt 2.
Main concept of the tasks must be understand
by Managers in rder to properly communicate
to his subordinates 3. In T&D Statistical tools
must be apply with problem solving techniques.
4. Participation from top to bottom is necessary
in benchmarking, vertical & horizontal
involvement is must. 5. Empowering employee
in decision making (+ive) 6. Quality must be
assured at each level/Deptt: of org (Finance,
Manufacturing, & Service etc) 7. HRM must
continuous coordinate support their employees.
Culture:
Culture is the pattern of shared beliefs and
values that provides the members of an
organization rules of behavior or accepted
norms for conducting operations. It is the
philosophies, ideologies, values, assumptions,
beliefs, expectations, attitudes, and norms that
knit an organization together and are shared by
employees. For example, IBMs basic beliefs are
(1) respect for the individual, (2) best customer
service, and (3) pursuit of excellence. In turn,
these beliefs are operationalized in terms of
strategy and customer values. In simpler terms,
culture provides a framework to explain the
way things are done around here. Org must
match the culture with their strategies, goals
and objectives.
The Experts agree on need for cultural
transformation:
Deming calls for a transformation of the
American mgt
Style
Feigenbaum suggests a pervasive improvement
throughout the org
to Crosby, Quality is the result of a carefully
constructed

Categories of Behaviors: top mgt

commitment is demonstrated by behaviors and
activities that are exhibited throughout the
comp:
1 Signaling: Make statements or take actions
that support the vision of quality, such as
mission statements (Reason of existence,
creeds (set of beliefs), or charter (Principles &
Laws) directed toward customer satisfaction eg.
JC Peney Customer is always Right.
Focus: each & every employee know the
statements and his/her role in it. When fx and
system are aligned & when practice support
the culture, every one will likely support the
vision. (painkiller introduce with synayt people
die, top mgt call back medicine from mkt, latter
some medic left and woman die top mgt stop
manufacturing).
Employee Policies: are the clearest expression
of culture. Culture of quality can be
demonstrated in plicies such as Rewards,
Promotion systems, status symbols & other HR
actions.
Quality management system: Quality
management systems are vehicles for change
and should be designed to integrate all areas,
not only the quality assurance department.
They must be expanded throughout the
company to include white-collar activities
ranging from market research to shipping and
customer service. They are directed toward
achievement and commitment to purpose
through four universal processes: (1) the
specialization of task responsibilities through
structure, (2) the provision of information
systems that enable employees to know what
they need to do in order to achieve goals, (3)

the necessary achievement of results through

action plans and
projects, and (4) control through the
establishment of benchmarks, standards, and
feedback.
This process can be used for any major
objective, but it is also useful for providing a
clear picture of things that must be done to
implement a successful TQM program.
Identification of key success factors emerges
from three dimensions: (1) the drivers of
quality such as cycle time reduction, zero
defects, or six sigma; (2) operations that
provide opportunities for reducing cost or
improving productivity; and (3) the market side
of quality, which relates to the salability of
goods and services. These are converted to
specific goals and targets, which form the basis
for subsequent programs and the universal
processes identified earlier.
ORGANIZATIONAL IMPLICATIONS companies
have automated the easy applications: payroll,
financial accounting, production control, and so
on. Today, the concept Of re-engineering is
emerging. Rather than automating tasks and
isolating them into discrete departments,
companies are attempting to integrate the
related activities of engineering,
manufacturing, marketing, and support
operations. Actions proceed in parallel, rather
than in sequential order. Cycle time is reduced
and products get to market faster with fewer
defects. In short, the process is reengineered,
and computer power is applied to the new
process in the form of information systems. The
focus is changing from buying information
technology in order to automate paperwork to
a focus designed to improve the process. ExChairman of Apple Say MIS must be
independent deptt: and must be integrated
with other deptt if deptt didnt cooperate,
quality will be low All fx/deptt of of org must
date with Management Info System (MIS).
IT: org design (hierarchy) may be change but IT
must be not change. In absence of IT, it may be
harder to perform org fx.
Decision Making: is the toughest task in any
org. in decision making one must have some
info any level. As middle manager spends most
of their time exchanging info with subordinates,
peers or boss having less time for customer &
innovation. They need decision support
systems.
Information System in Japan: Japanese
Believe Customer satisfaction give more
opportunities and IT can be a vital means to
facilitate strategies & operation. Japanese Govt.
promoted this view by implanting policy of IT
use in every education Institute and org. The

Deming Prize is awarded yearly to Japanese

companies the shows outstanding
improvement in quality control.
STRATEGIC INFORMATION SYSTEMS
The integration of management information
systems (MIS) with strategic planning has been
suggested as a necessary prerequisite to
strategy formulation and implementation. If we
assume that the basic requirement of a
strategy is environmental positioning in order
to meet customer
requirements, and if we further assume that
the ultimate purpose of each function and
process within an organization is to contribute
to strategy, the role of information becomes
clear.
For determining the structure and processes
needed by an org in order to achieve a
competitive advantage, keeping in mind that
competitiveness is decided neither by the
industry nor by the company, but rather by the
customer. Beginning with the customer,
integration of processes and information can
proceed as follows:
Identify the market segment in which you
want to compete.
Use data collection and analysis to define the
customer requirements in the chosen segment.
Translate these requirements into major
design parameters to
develop, produce, deliver, and service the
product that meets the customers
requirements. These are the primary functions
and activities (processes) of the value chain.
Complement the primary processes with
support activities such as planning, finance and
accounting, MIS, personnel, and so on.
Subdivide or explode the organization
design parameters into the processes
(functions, activities, and so on) that are
necessary to achieve the quality differentiation.
Design the information requirements
necessary to manage each process and to
integrate all processes horizontally.
Environmental Analysis: Strategy
formulation requires an analysis of the different
environments: general, industry, and
competitive. Study show business owners
spend of day in external info search
Competitive information is particularly valuable
but is difficult to obtain. Such as: Market
share
Product line breadth Proprietary
advantages Age and location of facility
Experience curve effects R&D advantage
and position Growth rate Distribution

effectiveness Price competitiveness

Capacity and productivity Value added
Cash throw-off
Porter has identified the information needed for
positioning in an industry and in a chosen
market segment, and his system is widely
used. His categories are: 5 Force Model.
Intensity of rivalry Bargaining power of
buyers Bargaining power of suppliers
Threat of substitution
Threat of new entrants.
ORGANIZATIONAL LINKAGES
The importance of data linkages is illustrated
by data on service calls, a primary source of
measuring product field performance. These
are an important source of information for
design, engineering, manufacturing, sales, and
service. FedEx, 1st Service sector comp who
earned Baldrige Award. They integrates variety
of internal measurement systems into core of
its business The Objective is Zero Service
Defect, The System SQI (Service Quality
Indicators) measures 12 critical points at failure
can occur process & reinforce how employee
are doing compared to their goals.
INFORMATION AND THE CUSTOMER: Most
company fail fro Baldrige Award presented by
US President bcoz most companies do not
devote the same
attention to the customer that they do to the
internal processes of shipping, inventory, justin-time, manufacturing, and so on. This is
unfortunate because the operating processes
cannot be managed according to the principles
of TQM unless the loop is closed with customer
feedback. Information systems should be
extended beyond the plant into the
marketplace. Some companies tend to define
quality in terms of customer
satisfaction or some other non-specific term
and then relax after shipment is made,
overlooking the competitive success that
accompanies after-the sale service, spare parts,
or distribution. After the objective of an
information system is established, the next
step is to determine the information needs.
This is the most difficult step in designing an
MIS for customer satisfaction. Everything else is
detail and technique. Manager/user
involvement is essential here. If there is one
fundamental principle of TQM, it is that quality
is what
the buyer defines it to be, not what the
company defines it to be.
System Design: after study many firm failed to
design individual applications to fit an over all
master plan. A master plan should be centered
around corporate goals and the

critical success factors and costperformance

drivers related to these goals. In a
manufacturing firm, data from engineering,
production, and field service are used to
improve product design and manufacturing
techniques. If reducing cycle time in bringing a
product to market is a critical success factor (as
it is), a good deal of this information will flow
sideways and
across departmental lines, rather than upward
and vertically, as in the traditional model. The
individual manager/user has the job of
designing his or her own system requirements
and fitting these into the overall master plan.
This is not easy for system analyst becoz of
inability/unwillingness of users to define info
needs. The next step is to define information
needs, another requirement that users have
difficulty defining. The question is: What
information do I need to achieve the
objective? If performance measures are
established,
the determination of both objective and
information needs will become more apparent.
Successful companies benchmark their
performance against world-class quality
leaders.
STRATEGY AND THE STRATEGIC PLANNING
PROCESS: strategy is the long-term plan for
achieving org goals concept given by Prof.
Andrews &other as
Corporate strategy is the pattern of decisions in
a company that (1) determines, shapes, and
reveals its objectives, purposes, or goals; (2)
produces the principal policies and plans for
achieving these goals; and (3) defines the
business the company intends to be in, the kind
of economic and human organization it intends
to be, and the nature of the economic and noneconomic contribution it intends to make to its
shareholders, employees, customers, and
communities
Michael Porter describe the development of
competitive strategy as a broad formula for
how a business
is going to compete, what its goals should be,
and what policies will be needed to carry out
those goals. Strategic Planning is a deliberate
process used by organizations to
develop a mission, vision, guiding values,
strategic objectives, and specific strategies for
achieving the objectives. One must do SWOT
Analysis to answer What are the
organizations strengths? What are the
organizations weaknesses?
What opportunities exist out there for the
organization to consider? What factors

(external and internal) constitute a threat to

the organization? Following a SWOT analysis,
the strategic plan will involve a process to
search for the answers
to the following questions:
Who are we? What are we known for?
What do we do better than 90% of our
competitors? What do our competitors beat
us on? What do we wish to be known for?
Where are we headed as an organization?
Where do we wish to be headed? How
would we get there? What would it take to
get us there?

STRATEGIC QUALITY MANAGEMENT

This pattern of goals, policies, plans, and human
organization is not something to be taken lightly.
It is likely to be in place over a long period of time
and therefore affects the org in many different
ways. The culture that guides members of the
organization and other stakeholders, the position
that it will occupy in an industry and market
segments, and determining particular objectives
and allocating resources to achieve them
all follow from the decision processes determined
by strategy. It is easy to see how pervasive a
strategy based on quality can become. It provides
the basis upon which plans are developed and
communications achieved. A basic rule of
strategic planning is that structure follows
strategy. Although the process of formulation and
implementation may require staff input, the
ultimate decision is fundamental to the job of the
chairman or CEO. It cannot be delegated. The
pervasive role that quality plays in strategic
planning can best be understood by examining
the components of a strategy:
Mission, vision, and guiding values
Product/market scope
Competitive edge (differentiation) Supporting
policies
Objectives Organizational culture
Mission: The mission is the primary overall
purpose of an organization and its expressed
reason for existence. The simplest statement of
mission might be to meet the needs/values of
constituents.
Vision: A vision reflects where the organization is
headed or wishes to be. It is like a destination
dreamed up by the org. Every decision made by
the organization must be informed by its vision.
Environment: The major determinant of a
mission is the environment in which the firm
plans to operate: the general environment, the
industry environment, and the competitive
environment. Strategy is essentially the process
of positioning
oneself in that environment as trends and
changes unfold. Thus, it is necessary to identify

trends in the environment and how they affect

the strategy of the firm
Differentiation
Differentiation, frequently called the competitive
edge, answers the question: Why should I buy
from you? Michael Porter, in his landmark book
Competitive Strategy, identified two generic
competitive strategies: (1) overall cost leadership
and (2) differentiation.16 Cost leadership in turn
can be broad in market scope (e.g., Ivory Soap,
Emerson Electric,
Black & Decker) or market segment focused (e.g.,
La Quinta Motels, Porter Paint). The second
strategy involves differentiating the product or
service by creating something that is perceived
by the buyer as unique
Complete with page 68
Service Quality:

TRAINING AND DEVELOPMENT

Increased involvement means more responsibility,
which in turn requires a greater level of skill. This
must be achieved through training. Training
usually falls into one of three categories: (1)
reinforcement of the quality message and basic
skill remediation, (2) job skill requirements, and
(3) knowledge about principles of TQM
companies commonly address the following
topics in quality training curricula:
Quality awareness Quality measurement
(performance measures/quality cost
benchmarking, data analysis)
Process management and defect prevention
Team building and quality circle training
Focus on customers and markets
Statistics and statistical methods
Taguchi methods

SELECTION
Selection is choosing from a group of potential
employees (or placement from existing
employees) the specific person to perform a given
job. In theory, the process is simple: Decide what
the job involves and what abilities are necessary,
and then use established selection techniques
(ability tests, personality tests, interviews,
assessment centers) as indicators
of how the candidate will perform. Persons
working in a quality environment need sharp
problem-solving ability in order to perform the
quantitative work demanded by statistical
process control, Pareto analysis, etc. Because of
the emphasis on teams and group process,
personnel must function well in group settings.

TOTAL QUALITY ORIENTED HUMAN

RESOURCE MANAGEMENT
Human resource executives are faced with both a
challenge and an opportunity. They are not
generally perceived with the same regard as line
managers. Philip Crosby describes the human
resource department as behind the times and the
human resource executive as his or her own worst
enemy. On the other hand, the department can
play a critical role in the implementation of a
holistic quality environment in support of a
strategic initiative. To accomplish this role, the
function should not only be designed to support
TQM throughout the organization, but should
make sure that good quality management
practices are followed within the processes of the
function itself. This means continuous
improvement as a way of department life. Bowen
and Lawler suggest putting the
following principles of TQM to work within the
human resource department:
_ Quality work the first time
_ Focus on the customer
_ Strategic holistic approach to improvement
_ Continuous improvement as a way of life
_ Mutual respect and teamwork
some modification of traditional human resource
management practices is required if the function
is to support the TQM program throughout the
company.

processes of planning and carrying out the plan,

and union opposition arose as workers were
deprived of a voice in the conditions and
functions of their work.
The Hawthorne experiments in the late
1920s showed how worker productivity could be
impacted by participation.

1930s

W. Edwards Deming taught methods for

statistical analysis and control of quality to
Japanese engineers and executives. This can be
considered the origin of TQM.

1950s

History of TQM:
Form holistic historical review quality revolution,
we can deduce that quality can be classified inot
four evolutionary phases:
1. Inspection
2. Quality Control
3. Quality Assurance
4. Total Quality Management
TQM involves methodology for continually
improving the quality of all processes, it draw on
a knowledge of the principles & Practice of
1. The Behavirual Sciences
2. The Analysis of quantitative & nonquantitative data
3. Economics Theories
4. Process analysis

Evolution of Total Quality Management:

TQM Timeline & History of TQM
1920s

Some of the first seeds of quality

management were planted as the principles of
scientific management swept through U.S.
industry.
Businesses clearly separated the

Walter Shewhart developed the methods

for statistical analysis and control of quality.

Joseph M. Juran taught the concepts of

controlling quality and managerial breakthrough.
Armand V. Feigenbaums book Total
Quality Control, a forerunner for the present
understanding of TQM, was published.
Philip B. Crosbys promotion of zero
defects paved the way for quality improvement in
many companies.

1968

The Japanese named their approach to

total quality companywide quality control. It is
around this time that the term quality
management systems arises.
Kaoru Ishikawas synthesis of the
philosophy contributed to Japans ascendancy
as a quality leader.

Today

TQM is the name for the philosophy of a

broad and systemic approach to managing
organizational quality.
Quality standards such as the ISO 9000
series and quality award programs such as the
Deming Prize and the Malcolm Baldrige National
Quality Award specify principles and processes

that comprise TQM.

structure, the
key activities.

ORGANIZING FOR TQM: THE SYSTEMS

APPROACH
The organization is a social system comprising a
number of components such as marketing,
production, finance, research, and so on. These
organizational components are activities that may
or may not be integrated, and they do not
necessarily have objectives or operate toward
achievement of an objective. Thus, synergism, a
necessary attribute of a well-organized system,
may be lacking as each activity takes a parochial
view or operates independently of the others.
This lack of synergism cannot continue under the
TQM approach to strategic management because
interdependency across functions and
departments is a necessary precondition. Inputs
to the system are converted by organization
activities into an output. Indeed, the sole reason
for the existence of the organization and each
activity within it is to add value to inputs and
produce an output with greater value. A measure
of this conversion of inputs into outputs is known
as productivity, and the ratio of output to input
must be a positive number if the system is to
survive in the long run.

ORGANIZING FOR QUALITY

IMPLEMENTATION
The traditional approach to organization sees the
process as a mechanical
assemblage of functions and activities without a
great deal of attention to
strategy and desired results. The process takes
the product as given and
groups the necessary skills and activities into
homogeneous functions and
departments. This approach to building an
organization structure has been
criticized by Peter Drucker: What we need to
know are not all the
activities that might conceivably have to be
housed in the organization
structure. What we need to know are the loadbearing parts of the

Key activities will differ depending on the nature

of the organization,
its products, and its strategy.

Page 165

Total Quality Management is a management

approach that originated in the 1950s and has
steadily become more popular since the early
1980s. 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
companys operations, with processes being
done right the first time and defects and waste
eradicated from operations.
Total Quality Management, TQM, is a method by
which management and employees can
become involved in the continuous
improvement of the production of goods and
services. It is a combination of quality and
management tools aimed at increasing
business and reducing losses due to wasteful
practices.
Some of the companies who have implemented
TQM include Ford Motor Company, Phillips
Semiconductor, SGL Carbon, Motorola and
Toyota Motor Company.1
TQM Defined
TQM is a management philosophy that seeks to
integrate all organizational functions
(marketing, finance, design, engineering, and
production, customer service, etc.) to focus on
meeting customer needs and organizational
objectives.
TQM views an organization as a collection of
processes. It maintains that organizations must
strive to continuously improve these processes
by incorporating the knowledge and
experiences of workers. The simple objective of
TQM is Do the right things, right the first time,
every time. TQM is infinitely variable and
adaptable. Although originally applied to
manufacturing operations, and for a number of
years only used in that area, TQM is now
becoming recognized as a generic
management tool, just as applicable in service
and public sector organizations. There are a
number of evolutionary strands, with different
sectors creating their own versions from the
common ancestor. TQM is the foundation for
activities, which include:

Commitment by senior management and

all employees
Meeting customer requirements
Reducing development cycle times
Just in time/demand flow manufacturing
Improvement teams
Reducing product and service costs
Systems to facilitate improvement

Line management ownership

Employee involvement and
empowerment
Recognition and celebration
Challenging quantified goals and
benchmarking
Focus on processes / improvement plans
Specific incorporation in strategic
planning
This shows that TQM must be practiced in all
activities, by all personnel, in manufacturing,
marketing, engineering, R&D, sales,
purchasing, HR, etc.2
Principles of TQM
The key principles of TQM are as following: 3
Management Commitment
Plan (drive, direct)
Do (deploy, support, participate)
Check (review)
Act (recognize, communicate, revise)
Employee Empowerment
Training
Suggestion scheme
Measurement and recognition
Excellence teams
Fact Based Decision Making
SPC (statistical process control)
DOE, FMEA
The 7 statistical tools
TOPS (Ford 8D team-oriented problem
solving)
Continuous Improvement
Systematic measurement and focus on
CONQ
Excellence teams
Cross-functional process management
Attain, maintain, improve standards
Customer Focus
Supplier partnership
Service relationship with internal
customers
Never compromise quality
Customer driven standards
The Concept of Continuous Improvement
by TQM
TQM is mainly concerned with continuous
improvement in all work, from high level
strategic planning and decision-making, to
detailed execution of work elements on the
shop floor. It stems from the belief that
mistakes can be avoided and defects can be
prevented. It leads to continuously improving
results, in all aspects of work, as a result of
continuously improving capabilities, people,
processes, technology and machine
capabilities.

Continuous improvement must deal not only

with improving results, but more importantly
with improving capabilities to produce better
results in the future. The five major areas of
focus for capability improvement are demand
generation, supply generation, technology,
operations and people capability.
A central principle of TQM is that mistakes may
be made by people, but most of them are
caused, or at least permitted, by faulty systems
and processes. This means that the root cause
of such mistakes can be identified and
eliminated, and repetition can be prevented by
changing the process.1
There are three major mechanisms of
prevention:
1.

Preventing mistakes (defects) from

occurring (mistake-proofing or poka-yoke).
2.
Where mistakes cant be absolutely
prevented, detecting them early to prevent
them being passed down the value-added
chain (inspection at source or by the next
operation).
3.
Where mistakes recur, stopping
production until the process can be corrected,
to prevent the production of more defects.
(stop in time).
Implementation Principles and Processes
A preliminary step in TQM implementation is to
assess the organizations current reality.
Relevant preconditions have to do with the
organizations 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.
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.5
However, a certain level of stress is probably
desirable to initiate TQM. People need to feel a
need for a change. Kanter (1983) addresses
this phenomenon be describing 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.8
Steps in Managing the Transition
Beckhard and Pritchard (1992) have outlined
the basic steps in managing a transition to a
new system such as TQM: identifying tasks to
be done, creating necessary management
structures, developing strategies for building
commitment, designing mechanisms to
communicate the change, and assigning
resources.
Task identification would include a study of
present conditions (assessing current reality, as
described above); assessing readiness, such as
through a force field analysis; creating a model
of the desired state, in this case,
implementation of TQM; announcing the
change goals to the organization; and assigning
responsibilities and resources. This final step
would include securing outside consultation
and training and assigning someone within the
organization to oversee the effort. This should
be a responsibility of top management. In fact,
the next step, designing transition
management structures, is also a responsibility
of top management. In fact, Cohen and Brand
(1993) and Hyde (1992) assert that
management must be heavily involved as
leaders rather than relying on a separate staff

person or function to shepherd the effort. An

organization wide steering committee to
oversee the effort may be appropriate.
Developing commitment strategies was
discussed above in the sections on resistance
and on visionary leadership.6
To communicate the change, mechanisms
beyond existing processes will need to be
developed. Special all-staff meetings attended
by executives, sometimes designed as input or
dialog sessions, may be used to kick off the
process, and TQM newsletters may be an
effective ongoing communication tool to keep
employees aware of activities and
accomplishments.
Management of resources for the change effort
is important with TQM because outside
consultants will almost always be required.
Choose consultants based on their prior
relevant experience and their commitment to
adapting the process to fit unique
organizational needs. While consultants will be
invaluable with initial training of staff and TQM
system design, employees (management and
others) should be actively involved in TQM
implementation, perhaps after receiving
training in change management which they can
then pass on to other employees. A
collaborative relationship with consultants and
clear role definitions and specification of
activities must be established.

o be successful implementing TQM, an

organization must concentrate on the eight key
elements:
1.
2.
3.
4.
5.
6.
7.
8.

Ethics
Integrity
Trust
Training
Teamwork
Leadership
Recognition
Communication
This paper is meant to describe the eight
elements comprising TQM.
Key Elements
TQM has been coined to describe a philosophy
that makes quality the driving force behind
leadership, design, planning, and improvement
initiatives. For this, TQM requires the help of
those eight key elements. These elements can
be divided into four groups according to their
function. The groups are:
I. Foundation It includes: Ethics, Integrity and
Trust.
II. Building Bricks It includes: Training,
Teamwork and Leadership.
III. Binding Mortar It includes: Communication.
IV. Roof
It
includes:

In summary, first assess preconditions and the

current state of the organization to make sure
the need for change is clear and that TQM is an
appropriate strategy. Leadership styles and
organizational culture must be congruent with
TQM. If they are not, this should be worked on
or TQM implementation should be avoided or
delayed until favorable conditions exist.
Remember that this will be a difficult,
comprehensive, and long-term process.
Leaders will need to maintain their
commitment, keep the process visible, provide
necessary support, and hold people
accountable for results. Use input from
stakeholder (clients, referring agencies, funding
sources, etc.) as possible; and, of course,
maximize employee involvement in design of
the system.7
Always keep in mind that TQM should be
purpose driven. Be clear on the organizations
vision for the future and stay focused on it.
TQM can be a powerful technique for
unleashing employee creativity and potential,
reducing bureaucracy and costs, and improving
service to clients and the community.

Recognition.
I. Foundation
TQM is built on a foundation of ethics, integrity
and trust. It fosters openness, fairness and
sincerity and allows involvement by everyone.
This is the key to unlocking the ultimate
potential of TQM. These three elements move
together, however, each element offers
something different to the TQM concept.
1. Ethics Ethics is the discipline concerned
with good and bad in any situation. It is a twofaceted subject represented by organizational
and individual ethics. Organizational ethics
establish a business code of ethics that outlines

guidelines that all employees are to adhere to

in the performance of their work. Individual
ethics include personal rights or wrongs.
2. Integrity Integrity implies honesty, morals,
values, fairness, and adherence to the facts
and sincerity. The characteristic is what
customers (internal or external) expect and
deserve to receive. People see the opposite of
integrity as duplicity. TQM will not work in an
atmosphere of duplicity.
3. Trust Trust is a by-product of integrity and
ethical conduct. Without trust, the framework
of TQM cannot be built. Trust fosters full
participation of all members. It allows
empowerment that encourages pride
ownership and it encourages commitment. It
allows decision making at appropriate levels in
the organization, fosters individual risk-taking
for continuous improvement and helps to
ensure that measurements focus on
improvement of process and are not used to
contend people. Trust is essential to ensure
customer satisfaction. So, trust builds the
cooperative environment essential for TQM.
II. Bricks
Basing on the strong foundation of trust, ethics
and integrity, bricks are placed to reach the
roof of recognition. It includes:
4. Training Training is very important for
employees to be highly productive. Supervisors
are solely responsible for implementing TQM
within their departments, and teaching their
employees the philosophies of TQM. Training
that employees require are interpersonal skills,
the ability to function within teams, problem
solving, decision making, job management
performance analysis and improvement,
business economics and technical skills. During
the creation and formation of TQM, employees
are trained so that they can become effective
employees for the company.
5. Teamwork To become successful in
business, teamwork is also a key element of
TQM. With the use of teams, the business will
receive quicker and better solutions to
problems. Teams also provide more permanent
improvements in processes and operations. In
teams, people feel more comfortable bringing
up problems that may occur, and can get help
from other workers to find a solution and put
into place. There are mainly three types of
teams that TQM organizations adopt:
A. Quality improvement teams or excellence
teams (QITs) These are temporary teams with

the purpose of dealing with specific problems

that often recur. These teams are set up for
period of three to twelve months.
B. Problem solving teams (PSTs) These are
temporary teams to solve certain problems and
also to identify and overcome causes of
problems. They generally last from one week to
three months.
C. Natural work teams (NWTs) These teams
consist of small groups of skilled workers who
share tasks and responsibilities. These teams
use concepts such as employee involvement
teams, self-managing teams and quality circles.
These teams generally work for one to two
hours a week.
6. 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. For TQM to be successful in
the business, the supervisor must be
committed in leading his employees. A
supervisor must understand TQM, believe in it
and then demonstrate their belief and
commitment through their daily practices of
TQM. The supervisor makes sure that
strategies, philosophies, values and goals are
transmitted down through out the organization
to provide focus, clarity and direction. A key
point is that TQM has to be introduced and led
by top management. Commitment and
personal involvement is required from top
management in creating and deploying clear
quality values and goals consistent with the
objectives of the company and in creating and
deploying well defined systems, methods and
performance measures for achieving those
goals.
III. Binding Mortar
7. Communication It binds everything
together. Starting from foundation to roof of the
TQM house, everything is bound by strong
mortar of communication. It acts as a vital link
between all elements of TQM. Communication
means a common understanding of ideas
between the sender and the receiver. The
success of TQM demands communication with
and among all the organization members,
suppliers and customers. Supervisors must
keep open airways where employees can send
and receive information about the TQM
process. Communication coupled with the
sharing of correct information is vital. For
communication to be credible the message
must be clear and receiver must interpret in
the way the sender intended.

There are different ways of communication

such as:
A. Downward communication This is the
dominant form of communication in an
organization. Presentations and discussions
basically do it. By this the supervisors are able
to make the employees clear about TQM.
B. Upward communication By this the lower
level of employees are able to provide
suggestions to upper management of the
affects of TQM. As employees provide insight
and constructive criticism, supervisors must
listen effectively to correct the situation that
comes about through the use of TQM. This
forms a level of trust between supervisors and
employees. This is also similar to empowering
communication, where supervisors keep open
ears and listen to others.
C. Sideways communication This type of
communication is important because it breaks
down barriers between departments. It also
allows dealing with customers and suppliers in
a more professional manner.
IV. Roof
8. Recognition Recognition is the last and final
element in the entire system. It should be
provided for both suggestions and
achievements for teams as well as individuals.
Employees strive to receive recognition for
themselves and their teams. Detecting and
recognizing contributors is the most important
job of a supervisor. As people are recognized,
there can be huge changes in self-esteem,
productivity, quality and the amount of effort
exhorted to the task at hand. Recognition
comes in its best form when it is immediately
following an action that an employee has

performed. Recognition comes in different

ways, places and time such as,

Ways It can be by way of personal

letter from top management. Also by award
banquets, plaques, trophies etc.

Places Good performers can be

recognized in front of departments, on
performance boards and also in front of top
management.

Time Recognition can given at any time

like in staff meeting, annual award banquets,
etc.
Conclusion
We can conclude that these eight elements are
key in ensuring the success of TQM in an
organization and that the supervisor is a huge
part in developing these elements in the work
place. Without these elements, the business
entities cannot be successful TQM
implementers. It is very clear from the above
discussion that TQM without involving integrity,
ethics and trust would be a great remiss, in fact
it would be incomplete. Training is the key by
which the organization creates a TQM
environment. Leadership and teamwork go
hand in hand. Lack of communication between
departments, supervisors and employees
create a burden on the whole TQM process.
Last but not the least, recognition should be
given to people who contributed to the overall
completed task. Hence, lead by example, train
employees to provide a quality product, create
an environment where there is no fear to share
knowledge, and give credit where credit is due
is the motto of a successful TQM organization.