9.7 - Impact of Total Quality Management on Business
The principles and philosophy of TQM
Total quality management (TQM) is a comprehensive approach that emphasises the involvement of every individual in maintaining high standards across all aspects of a business's operations. It focuses on ensuring that the final products or services meet or exceed expectations through collective effort.
At its core, TQM operates on the idea that quality is a shared duty, influencing how employees think and behave in their daily tasks. Rather than being a specific method or tool, TQM represents a fundamental mindset where the pursuit of excellence permeates the entire organisation.
Internal customers and quality chains
In TQM, the concept of customers extends beyond external buyers to include colleagues within the business who depend on each other's work. This internal perspective helps maintain smooth operations and high standards throughout the production or service delivery process.
Internal customers
An internal customer is any employee or department that receives output from another part of the organisation. For example, if one team hands over components or data to another, the receiving team acts as the customer, expecting accurate and timely delivery.
Quality chains
Quality chains refer to the interconnected relationships between departments, where each acts as both a supplier and a customer to others. This view portrays the entire business as a network of these links, ensuring that quality is preserved at every step.
Examples of internal customer relationships:
- Warehouse operations - The person responsible for preparing shipments relies on the stock management team as their internal customer. If items are mislabelled or misplaced, it affects the accuracy of orders sent to external clients.
- Software development - A group building a smartphone app depends on programmers for reliable code. Mistakes in programming could lead to flaws in the app, failing to satisfy quality requirements.
Employee empowerment and cultural change in TQM
Implementing TQM often requires a shift in how a business operates, moving towards greater employee involvement and responsibility. This change fosters a more engaged workforce and aligns with motivational theories.
Key aspects of TQM cultural change:
- Empowering workers in quality control - Staff are given the authority to inspect and verify the quality of their own work before it moves to the next stage. This proactive checking helps prevent errors from progressing through the system.
- Connection to job enrichment - TQM supports principles similar to those in Herzberg's motivation theory, where enriching roles by adding responsibility can improve job satisfaction and performance.
- Impact on organisational structure - With employees taking ownership of quality, there is less reliance on dedicated inspection teams, potentially streamlining operations and reducing overheads.
Benefits and goals of implementing TQM
TQM aims to enhance efficiency and customer satisfaction by focusing on prevention rather than correction. This approach can lead to significant long-term advantages for the business.
Key goals of TQM
- Achieving zero defects - The ultimate target is to produce goods or services with no faults, eliminating waste and rework.
- Right first time philosophy - Encouraging accurate work from the outset minimises the expenses associated with corrections or returns.
Economic benefits
By improving quality, TQM can lower the costs linked to rejected items and boost demand as customers recognise the reliability of the offerings. Over time, this contributes to stronger market position and profitability.
Requirements for successful TQM implementation
For TQM to be effective, it must be embedded across the whole organisation, with strong leadership and a supportive environment.
Key requirements:
- Total commitment - TQM demands buy-in from every level, particularly senior leaders who must promote empowerment and delegate decision-making to the workforce.
- Appropriate organisational structure - It functions best in flexible settings and may struggle in highly controlled or hierarchical environments where authority is centralised. Without widespread dedication, isolated efforts are unlikely to yield results.