Total Quality Management (TQM) - Essay Example

Total Quality Management (TQM) Literature Review The role of Total Quality Management (TQM) in modern management practices. Research Hypothesis: Why Total Quality Management is needed in modern business Background of this study: “TQM is a set of management practices applied throughout the organization and geared to ensure that business consistently meets or exceeds customer expectations and it places strong focus on process measurement and control as means of achieving continuous improvement” (Total quality management (TQM) 2010). The main idea is that execution and outcomes of TQM processes are quite distinct from its precepts and theories. Besides, TQM is itself in the process of reinvention and evolution and has unquestionably come a long way since it was first established during the middle of 20th Century. What strikes one most about TQM is that it does not really concern itself about quality or benchmarks, but is a system that is designed to sustain long term value addition and growth for the total business, and not necessarily for specific constituents of business segments like Production, Quality Controls (QC), Inventory Management, etc. Perhaps, one of the major aspects of TQM, besides its holistic approach, lies in its continued sustenance and implementation over long period of time, thus contributing to the overall success of this technique. Perhaps, sustaining the momentum of TQM practices is even more challenging and onerous, especially in SME organizations, where there are several constraints, in terms of available documentation and a well laid out work flow system, besides shortage of human and material resources to set systems afloat. “Implementing TQM Management alone cannot ensure its long term business success. The leader has to drive the TQM implementation in accordance to the TQM principles, follow the TQM model, provides regular TQM training in the application of TQM Tools, get total employee involvement in their continuous improvement culture building and keep up its momentum” (Foong 2001).Thus, the experiences gained from major corporations regarding TQM is that it is a state of mind rather than state-of-the-art, although it is quite possible that enforcement of desired systems and objective do constitute a large part of TQM and influence its enforcement. As is well documented, Toyota has been a major advocate and enforcer of TQM, and this has been a contributor, in no small measure, to the tremendous success of their brand. The use of TQM with Six Sigma has revolutionized business practices all over the world in the 21st Century and there is still a lot more ground to cover. Aims and objectives of this study: To provide ample literature to reinforce the positive aspects of TQM and explain its ramifications in the business context. Salient factors about TQM: It is now necessary to consider the salient features of TQM with regard to: 1. Continuous product, process or service improvements 2. Performance need to achieve excellence first time around, and should not be based on trial- error- and- resolution methods 3. All management efforts need to be centered around attaining zero defects products and no complaint services and utilities. 4. Co-ordinating and combining all facets of management disciplines within an organisation- Production, Finance, Marketing, Research and Development (R&D), Human Resources Planning into a cohesive and unified single unit. 5. Perhaps one of the crucial aspects about TQM is that it deals with people, or the work force and it is imperative that this element is taken into account while formulating strategies for its implementation and execution. 6. It is also important that top management takes the initiative for enforcement and sustenance of TQM processes. For one thing, leadership aspect is very important, since the work force would be inspired and motivated by positive thinking leaders, but, at the same time, it is also necessary that the workforce also put in their best efforts in order to achieve management goals and objectives. “The statistical analysis of engineering and manufacturing facts is an important part of TQM. Facts and analysis provide the basis for planning, review and performance tracking, improvement of operations, and comparison of performance with competitors. The TQM approach is based on the use of objective data, and provides a rational rather than an emotional basis for decision making” (Stark 1998). Keywords: Total quality management, Six Sigma, quality assurance, product cycle, human resource planning, continuous product improvement, zero error, process efficiencies, teamwork, TQM approach. Introduction: TQM has indeed come a long way since its inception during the middle of the 20th Century in Japan, and its gradual adoption by major business corporations in the United States, Europe and other business destination throughout the world. Today, it stands at the threshold of major innovation and is actively practices in large corporations like Toyota, Chrysler, IBM, US defence establishments, to name a few proponents of the art and science of active TQM. “TQM is a management approach to long-term success through customer satisfaction and is based on the participation of all members of an organization in improving processes, products, services, and the culture in which they work” (Philosophy of total quality management and strategies 2010). Thus what it follows is the integrated approach which embraces the entire gamut of business operations without any kind of bias or penchants. Besides, TQM tries to improve the entire system through overhauling in order to provide room for TQM processes and procedures which could make its presence felt right from the shop floor production floor in terms of controlling the conversion of raw materials to finished goods up to the supply chain systems of storing, warehousing, and inventorying goods. Besides, there are also aspects of total product improvement at each stage, not only of production and dispatch but also along the supply chain management system- to the ultimate consumer of goods and services. Thus the main aspects of TQM could be diagrammatically represented as follows: (What is total quality management 2010). The above aspects by far form the fulcrum of TQM in a typical manufacturing organisation, irrespective of its size, capital structure or work culture. However, it is very much necessary to invoke and enforce TQM in to and not in parts, in order to achieve total success over a period of time. Results cannot be achieved overnight- it is a long and arduous process and takes time, technology and good management practices to evolve. It is also crucially depending upon management leadership and good practices for its ultimate success. Perhaps one of the critical factors is not in just formulating and initiating TQM, but also in terms of sustaining it over the useful life of the organisation. One of the major aspects of business is that not only time tested methods need to be used but also, innovative practices and techniques could be tried out, not only as part of expressing progressive management ethos but also being imbued into corporate philosophies and ethos. This is evident when we consider that not all business issues and complexities could be solved (or resolved) through tested methods, it is sometimes necessary to seek new and innovative solutions inculcating the values placed by TQM, Six Sigma, etc. “Total quality management (TQM) is considered by many as an important quality and business performance improvement tool. The popularity of the concept has led to an explosion of TQM-related literature” (Gallear & Ghobadia 2001, p.343). Some thinking about TQM application: However, TQM cannot be viewed as just another run-in-the-mill concept whose exit from the annals of corporate business could be just as dramatic and compelling as its entry. It is first and foremost necessary that, a through and extensive study of the entire system be undertaken, preferably by external consultants, or TQM specialists, to analyze what troubles the business at the moment. After the preliminary survey has been conducted it becomes easier to identify and pinpoint areas which are deficient and need to be remedied. However, this is not to suggest that only deficient areas need to come under the TQM scanner. Where improvements could be practically and soundly enforced it is critical that these be done, and in good time. Simultaneously it is also necessary that audit trails are provided in terms of restructuring and reinforcing areas of weaknesses through ample doses of TQM, or other scientific systems that are designed to remove deficiencies and enforce discipline and conformity in business methods. While TQM as a process is often subjected to full and partial implementation, contingent and continuous usage and a host of permutations and combinations, whether it is TQM in its crudest form or something else is a matter of lesser contemplation and erred judgment. As has been rightly pointed out, not all TQM are TQMs in its real sense. “Companies seem to pick up bits and pieces of TQM and then report that they are operating TQM, when in reality most schemes appear an ill-matched mixture of quality circles, employee involvement, quality tools and long-established quality assurance systems. … estimates of up to seven years for TQM to become fully established in a company are not unusual – or the implementation of schemes that are simply piecemeal and will never develop into full TQM” (Hill & Wilkinson 1995). In essence, the TQM could be diagrammatically represented as follows: (Total quality management 2009). The Literature reviews available on the subject are unanimous in their choice that TQM needs to consider customer interests as the first priority since business begins and perhaps, ends with them. In modern competitive business, TQM practices assume centre stage since customers always has a choice, in terms of an alternative product, another marketer or producer. Thus his choices need to be well considered and TQM studies have given it the importance it deserves. Manufacturing process is also important since cost leakages could occur in terms of defectives, poor quality output, process duplication, non economies of scale, etc. Manufacturing needs to streamlined and rationalized on economic and cost effective lines if any benefits need to accrue. Next, marketing need to be competitively edged, customer biased and cost-to-serve based. Marketing strategies need to be constantly upgraded, reviewed and fine-tuned to meet current and future demands. This is more so under economic pressures, under conditions of buyers’ market, economic recession and when demand is low. Analysis of Total Quality Management: It is necessary that a finer analysis of TQM need to uphold and manage business processes and create new avenues for growth. While problem identification is important, literature reviews also considers the need to obviate these are uppermost in psyches of TQM specialists and performance managers. Thus it is necessary that management need to have tailored made TQM systems that are geared to meet their characteristic or typical needs, after undertaking root cause analysis and getting specialists to work on them for optimum benefits. Besides, use of Value analysis and /or other kinds of statistical analysis could be used in combination with TQM for achieving better results. “It is argued that TQM can achieve its full potential by the integration of TQM and other performance improvement techniques. Value analysis (VA), which focuses on products function and cost, is proposed as a potential area for cross-fertilization” (Ho, Cheng & Fong 2000, p.176). Literature review is suggestive of the fact that TQM when combined with other analysis could even achieve unbelievable positives for the business. “We also advocate a broader interpretation of TQM which would look beyond just efficiency and quality to the needs of the environment and the needs of all the stakeholders involved with the firm. Ben and Jerrys for example advocates an environmental and a social audit as a part of how they do business. These audits could balance TQMs microprocess tools with a broader definition of productivity” (David & Winsor 1993). Conclusion: More than TQM as a theory, it is the implementation of this unique phenomenon that has gained worldwide applause and for good reasons too. For one thing, it has eradicated the arbitrary and chance elements in manufacturing processes and brought it under clearly defined scientific practices. Again, it is not only specific segments that have gained a boost , but also the fact that this is a holistic system that takes care of the entire operational activities and is designed to bring whole time improvement in real time, leaving little, if no room for human, or non-human errors. Besides, there are factors that if constructively applied could lead the business well on the path of progress and prosperity like human motivation, increasing productivity, lowering attrition and rates of absenteeism, etc. TQM takes a holistic view of the entire organisation, warts and all, and suggests ways and means by which major impinging factors could be dispelled and overall productivity and consumer satisfaction could be gained through effective performance in all areas of corporate accountability and at all levels along the hierarchical flow. Finally, the literature review is supportive of the fact that the implementation of TQM through the use of TQM specialist and Six Sigma consultants are a major step that could at least augur, if not guarantee, a fresh lease of productive life for most border line companies, while at the same time increasing the capabilities and competencies of major giant corporations who vouchsafe for such practices. Besides, in the coming challenging future the need to gear oneself to meet future corporate challenges head on could well be well equipped with a coat of armour like an enforced TQM systems and procedures. Thus, the research hypothesis why TQM needs to be enforced could be well answered in terms of the fact that it is a unique and innovative tool and technique that could address major issues in modern day business, whether large or small and devise ways and means by which these weaknesses could be eliminated, and strengths reinforced throughout the organization. Reference List David, M.B. & Winsor, R.D. The remuneration of Taylorisom: Total quality management’s hidden agenda. Organizational Change Management, 6(4). [Online] JOCM. Available at: http://business.nmsu.edu/~dboje/papers/Boje_Winsor_Anti_TQM_1993.htm [Accessed 18 February 2010]. Foong, M.L., 2001.Total quality management (TQM). [Online] TQM Case Studies. Com. Available at: http://www.tqmcasestudies.com/ [Accessed 18 February 2010]. Gallear, D. & Ggobadia, A., 2001. TQM implication: An empirical examination and proposed generic model. Omega, 29(4), pp.345-359. [Online] Science Direct. Available at: http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6VC4-43CH9VY-5&_user=10&_coverDate=08%2F31%2F2001&_rdoc=1&_fmt=high&_orig=search&_sort=d&_docanchor=&view=c&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=ed20651ceded08f9cd268465cb582e80 [Accessed 18 February 2010]. Hill, S. & Wilkinson, A., 1995. What is TQM?. Employee Relation, 17(3). [Online] Emerald. Available at: http://www.emeraldinsight.com/Insight/ViewContentServlet?Filename=Published/EmeraldFullTextArticle/Articles/0190170301.html [Accessed 18 February 2010]. Ho, D.C.K., Cheng, E.W.L. & Fong, P.S.L., 2000. Integration of value analysis and total quality management: The way a head in the next millennium. Total Quality Management, 11(2), pp. 176-186. [Online] Ingenta Connect. Available at: http://www.ingentaconnect.com/content/routledg/ctqm/2000/00000011/00000002/art00004[Accessed 18 February 2010]. Philosophy of total quality management and strategies, 2010. [Online] Bexcellence. Org. Available at: http://www.bexcellence.org/philosophy-of-total-quality-management.html [Accessed 18 February 2010]. Stark, J., 1998. A few words about TQM. [Online] John Stark Associates. Available at: http://www.johnstark.com/fwtqm.html [Accessed 18 February 2010]. Total quality management (TQM), 2010. [Online] Free Management Library. Available at: http://managementhelp.org/quality/tqm/tqm.htm [Accessed 18 February 2010]. Total quality management model, 2009. [Online] Edrew Soft. Available at: http://www.edrawsoft.com/TQM-Diagrams.php[Accessed 18 February 2010]. What is total quality management, 2010. [Online] Bexcellence. Org. Available at: http://www.bexcellence.org/Total-quality-management.html [Accessed 18 February 2010]. Read More