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TOTAL QUALITY MANAGEMENT
by
KAREN-MICHELLE COLLINS
December, 2002
Key words: Total Quality Management (TQM), Focus
Quality Management (FQM), Walter Shewart, Edward Deming
Total Quality Management formally known as total quality control and
extensively recognized by its abbreviation as TQM since the mid-nineteen
eighties emphasizes the crucial role of management in the quality process.
It also uses a combination of methods, theories, techniques, and quality
guru strategies for achieving exceptional quality (Richardson, 1997, p.
51). Draped underneath this approach to management are various other new
styles of management that do not meet the actual criteria that identify
the real process, which are its four particular criteria (Creech, 1994, p.
5). TQM emphasizes the crucial role of management in the quality process
and utilizes a combination of methods, theories, techniques, and quality
guru strategies for achieving world-class quality” (Richardson, 1997,
p.51). Total quality management is not a fad of the times, but rather a
correction of the previous failures in management combined to produce a
better management style when used appropriately (Anschutz, 1995, p. 12). A
newer form of management has already evolved, as well, and is on the rise
as a productive and possible better-implemented plan than total quality
management from which its creators derived its methodology. The main
reason for the significance of focused quality management, this newly
implemented philosophy, is it answers the problems associated with the
so-called off-brands that lack a true relationship with total quality
management (Brelin, 1995, p. viii).
In the economic sense, the philosophies of Edward Deming founded the
basis of the ideals behind quality. First implemented in Japan to boost
their economy during the mid-twentieth century, its fundamental points
proved successful to the various Western businesses that had previously
ignored them (Drummond, 1992, p. 20). The ideals summarized in what would
be recognized as the Plan, Do, Check, Act, (PDCA) cycle created by Walter
Shewart were revised by Deming in 1990 creating the second well-known
cycle of economic excellence to be known as the Plan, Do, Share, Act (PDSA)
Cycle (Capezio and Morehouse, 1995, p. 69).
Total Quality Management Defined
The terminology for total quality management is difficult to summarize
into a simple sentence definition. However, as Peter Capezio and Debra
Morehouse clearly state in their book Taking the Mystery Out of TQM: A
Practical Guide to Total Quality Management, Second Edition, reference to
it can be simplified “to a management process and set of disciplines that
are coordinated to ensure that the organization consistently meets and
exceeds customer requirements.” Therefore, it is basically a philosophy of
business that founds its principles on customer satisfaction based on two
objectives which are to carefully design the product or service and ensure
consistency in the design. Orientating the excepting of these two major
objectives by all individuals within the organization is necessary, thus
the term total quality management (Drummond, 1992, p. 13). In Total
Quality Management, Richardson also adds that total quality management “is
a plan and strategy to extend quality control efforts to every function of
the company” and clearly defines each of the individual terms.
Total means that everyone participates and that it is integrated into
all business functions. Quality means meeting or exceeding customer
(internal or external) expectation. Management means improving and
maintaining business systems and their related processes or activities
(1997, p.51).
Milakovich and Gordon define total quality management as
A management approach that encourages organizationwide [sic]
commitment, teamwork, and better quality of results by providing
incentives to increase the success of the whole enterprise. Elements of
TQM include commitment to meeting customer-driven quality standards;
employee participation or empowerment to make decisions at the point
closest to the customer; actions based on data, facts, outcome measures,
results, and statistical analysis; commitment to process and continuous
quality improvements; and organizational changes and teamwork to encourage
implementation all of the above elements (2001, p. 168, 546).
Four Criteria of Total Quality Management
Peter F. Drucker illustrates the implementation of total quality
management philosophies that were used during the Gulf War by the Tactical
Air Command of the United States Air Force under the leadership of Bill
Creech, which has become a well-known success story despite the huge size
and diversity of the organization. The basic reason for such a grand
accomplishment is its founding in the roots of total quality management.
For a program to achieve desired results involving the implementation and
future success of ideals that are considered as total quality management
it must use four underlying criteria. The four principles of total quality
management are customer satisfaction, continuous improvement, respect for
people, and managing with information and analysis (Richardson, 1997,
p.51).
First, the basis of the program should include in every activity,
process, and product a quality mindset and a quality orientation. Next, it
should bring about quality in the way employees are involved, treated, and
motivated by developing a strongly humanistic setting. Then, the program
has to allow empowerment at all levels. This includes decentralizing the
approach in such a manner that especially the frontline receives the power
so that fervent participation and common aspirations are realities instead
of mere slogans. Finally, applying the implementation of any philosophies
relating to total quality management should be holistically so that all
aspects of the plan reach every individual (Creech, 1994, p. 5).
Overview of Focused Quality Management
Defined
Focus quality management is a business philosophical idea designed by
employees of businesses that failed to use the total quality management
program correctly and successfully. It was initially created to repair
these problems and is more concerned with producing results from currently
implemented total quality management programs than forming a new type of
management altogether (Brelin, 1995, p. viii). Focus quality management is
focused on a cross-functional process rather than a functional outcome,
which is the accustomed concentration of total quality management and
proposes that the focus should be as specific as possible in order to
achieve the greatest success. Thus, the terminology is focus quality
management because the focus has a different perspective in relation to
its predecessor (Brelin, 1995, p. 11, 14).
Implementation Approach
Focus Quality Management follows a four-step approach. These steps each
consist of numerous sub-steps. Process is the first one, which consists of
organization, envision and assess. During this step the manager and the
leadership team organize and develop statements of mission, values, and
vision; identify key processes; and conduct an assessment to determine
where the company is and where it wants to be in the future. Next, the
company plans by creating process and organizational improvement plans.
Tangible plans develop throughout the second step so that suitable
business processes and the organization as a whole will improve. Then
deployment takes place by charting process improvement teams, improving
the processes, and implementing these recommendations. The final sub-steps
include advancing tools, employee empowerment, and reassessment during the
transition stage. This last step institutes the focused quality management
project as the way the business should operate every day” (Brelin, 1995,
p. 14-16).
The Quality Philosophies of Edward Deming
Precepts of the Fourteen Points
Deming created Fourteen Points of management based upon three
principles. The first one is customer orientation. The second element is
continuous improvement. The last principle is to recognize that quality is
determined by the system, which is the inputs and the manner in which the
previous two aspects are processed (Drummond, 1992, p. 21).
Point I: Creating Constancy of Purpose for Improvement of Product and
Service
The main message that Deming is trying to express under this point
features two key aspects. These are customer obsession and strategic
planning. These two ideals converged under this first point to establish
the appropriate direction for businesses to focus their attention (Anschutz,
1995, p. 17). They should concentrate more on pleasing the customers than
defeating any of their competitors. Competition will always be present if
the business remains successful and manages to stay at the top of
production, yet the only way such will be feasible is if they continue to
maintain customer satisfaction (Drummond, 1992, p. 22). However, Deming
also adds that businesses should aim to become competitive, stay in
business, and provide jobs, but in order to do so, they should focus their
main attention on what the customers want rather than what they assume is
wanted. In effect the corporation will become a leading competitor that
does not need to worry about competition, so there is no need to do so
while reaching such a standard (Anschutz, 1995, p. 18).
Point II: Adopting the New Philosophy
This so-called new philosophy advocated by Deming is central to the
ethics of total quality management because it represents the new economic
age of industrialization, which is irrelevant under the old philosophies.
For example under these post-philosophical ideas, the long-term investment
was considered a loss for management because only later successors would
reap the benefits. This is seemingly a ridiculous thought in the recent
economical age because Deming practically claimed the opposite was true in
order to reach the goal, which is essentially the same outcome (Anschutz,
1995, p. 19). This new philosophy is nothing more than businesses taking
the time to notice and prevent the further production of defective
products or services, which in effect will lead to increase profits in the
long-term. As Deming summarizes under this point, defects are expensive,
unnecessary, and not inevitable. He argues that they are a product of the
system traceable to a cause or chain of events concluding in these
defects. The most significant problem is the managerial career structures.
Usually members of this level of the corporation are highly educated
resulting in employees that are only planning to use this position as a
short-term advancement to reach the one they would rather hold. This
creates a weak foundation for the lower levels since the next highest
position does not attempt to find or correct problems. They do not try to
change things because they may risk their chance of promotion if the
problems worsen instead of improve (Drummond, 1992, p. 23).
Point III: Ceasing Dependence upon Mass Inspection
A chief asset of management is to cease dependence upon inspection to
achieve quality (Drummond, 1992, p. 34). In other words, quality is
derived from improving the system rather than inspecting for quality. Once
the system is improved then the quality will also (Dummond, 1992, p. 24).
When many inspectors are hired to inspect the individual products the
problem of passing defective products to consumers worsens because nearly
every inspector assumes to some degree that a minimum inspection of so
many products is enough. The usual mindset to a certain extent is that a
past inspector should have already found the defect or future inspectors
should find it if he or she had missed the mistake (Drummond, 1992, p.
25). Plus an inspection cannot put quality into a defected product. It can
only stop the defected product from advancing further. However, when a
product is designed with quality, it can pass an infinite number of
inspectors who rank it as high quality. The reason the product is a defect
depends on the design that promotes the quality instead of the inspectors
noticing the defects (Drummond, 1992, p. 24). This in no manner means that
inspection should cease, but it does provide that the dependence on
inspection should (Anschutz, 1995, p. 21).
Point IV: Ending the Practice of Selecting Suppliers on the Basis of
Only the Price
Deming suggests that businesses should minimize their long-term costs
rather than minimize the initial cost (Anchutz, 1995, p. 22). Instead of
generating business based on price alone, management should minimize the
total cost by working with a single supplier (Drummond, 1992, p. 35).
Using a sole supplier prevents added variability from multiple suppliers
and forms a bond between the supplier and corporation creating a strong
partnership as if the two were actually only one larger business (Anschutz,
1995, p. 78). Once a bond with a single long-term supplier has been
established, it is easier for the business to request what it needs from
the supplier and for the supplier to respond accordingly to meet these
needs, thus reducing costs for both parties. The supplier will send to the
business consistent materials at a set price. This consistency produces a
better outcome of the final product than competing with various suppliers
for the cheapest price on the cheapest materials available at the time the
transaction takes place (Drummond, 1992, p. 26).
Point V: Improving Constantly and Forever the System of Production
Improving every process concerning planning, production, and service
provides better products for the consumer and higher profits for the
business (Drummond, 1992, p. 35). The standards set forth under this point
are the basis of the reengineering process, which is not merely an
improved process as associated with Kaizen in Japan, but a completely new
one altogether. Kaizen literally translates to the English meaning of
improvement. It incorporates continuous growth through small gains in
improvement of current processes while reengineering focuses on
eliminating processes that are no longer needed to increase improvements
and are actually to some degree preventing it (Anschutz, 1995, p. 130-1).
Point VI: Instituting on the Job Training
Deming urges that every level of the system be trained for its specific
tasks. The laborer responsible for performing the manual tasks may
misunderstand it, despite how it might seem easily to be understood by the
requester in management (Drummond, 1992, p. 28). When new employees are
hired they should receive total quality management training in groups at
the company, departmental, and local level before they begin working alone
in order to prevent such misunderstandings (Anschutz, 1995, p. 104).
Point VII: Adopting and Instituting leadership
Deming rationalized that at the expense of leadership, management had
over-expressed organizational control, thus devoting a majority of their
time worrying only about outcomes. He pushes them to concentrate their
efforts in improvements by making company visions actual actions of the
corporation. Corporate leaders should center their attention on finding
the source of any problems and correcting them in the system rather than
blaming certain individuals for these inefficiencies (Drummond, 1992, p.
29). In correcting wrongs in this sense, a horizontal focus is formed
between all employees because managers seek advice from all levels and
give equal insight to their opinions. In effect management focuses on
larger issues rather than minute details which saves time and money in the
long-term (Anschutz, 1995, p. 24). This also prevents management from
depriving the lower levels of their opportunities to promote their
abilities and assume accountabilities for their performances. Without the
stress of overseers rating them while they are working, these employees
usually perform at higher standards because they feel management trusts
their skills. Allowing them freedom of performance creates extra time for
managers to perform urgent managerial duties such as correcting essential
problems and adhering to the demands of higher levels without the extreme
pressures felt under vertical hierarchies (Anschutz, 1995, p. 51).
Point VIII: Driving Out Fear
Fear is always present within individuals and in the company to which
they are apart. Removing fear allows the free flow of ideas throughout the
corporation. It will not vanish completely from any organization where
decisions of a higher body revolve around employee advancement and pay,
which is an important part of business. It is possible to drive out this
fear from individuals who are afraid to converse their real ideas to
management and replace them with false impressions to secure their current
position in good standing or precede further (Anschutz, 1995, p. 24). This
is possible by replacing the fear in the most substantial form as
insecurity with planning, analysis, and ultimately honesty without the
possibility of loosing ones position or room for advancement. Doing away
with a vast degree of fear between levels and within management itself
allows the company to improve because exchanges of influential
contributions in the corporation will be able to blossom (Drummond, 1992,
p. 29).
Point XI: Breaking Down Barriers between Staff Areas
The employees from each level of the corporation must work well with
the other levels in order for the company to function at its best
potential. This includes understanding the problems among the various
branches of the business at each level. Only after a high level of
awareness and commitment exists between them can change initially develop
because cooperation requires this earnest fundamental transition
(Drummond, 1992, p. 29). When managers share information with employees,
they recognize that a complication exists that inhibits employees from
providing statements, presenting opinions or ideas, and asking questions
in large group settings. Once realized, the managerial staff can prompt
the specific brand of trust and interest needed by the certain group of
individuals to promote an honest exchange of ideas between levels without
these barriers of communication (Anschutz, 1995, p. 42).
Point X: Eliminating Slogans, Exhortations, and Targets for the
Workforce
Pointless signs hanging throughout the company in an attempt to promote
corporate objectives is useless to employees and a waste of money to the
business. Providing employees with company policies and purposes is
essential but doing so in a tactful manner in memos and letters is less
insulting and ignored than are the tacky posters dispersed throughout the
organization in no particular order (Anschutz, 1995, p. 25). Presenting
such necessary information in the latter manner only proves failure of the
management to express company goals and objectives adequately and
professionally, thus using signs to speak to employees rather than by
personal confrontations (Anschutz, 1995, p. 30).
Point XI: Eliminating Numerical Controls for the Workforce
Eliminating numerical quotas for the staff and numerical goals for the
management increase quality because each employee is no longer based on
the statistical average worker but on their own performance without
comparative judgements making it easier for management to advance
individuals who work to the highest potential. This in effect encourages
the actual above-average half especially to work to their full potential
at all times rather than merely work to meet the proposed numerical
objective before halting their efforts or working slower than is necessary
to prevent reaching the set number before the desired time (Drummond,
1992, p. 35). Also setting numerical controls prevents all employees from
producing further effort after the established standard has been met
because they essentially relax after meeting the objective rather than
attempting to go beyond the requirement as to not disrupt the controlled
amount. From results such as these, it is difficult to base pay advances
since all employees work with the same minimal potential to simply reach
the standard rather than exceed it (Anschutz, 1995, p. 26).
Point XII: Removing Barriers that Rob People of Pride of Workmanship
Abolishing annual performance appraisals promotes self worth and pride
in employees because it creates improved ways for individuals to receive
increases in pay. Instead of basing the pay increase on achieved results
without taking into account the possible barriers outside the control of
the employees or overseeing their work, the increase is solely based on
how much it would cost to hire a new employee with the same skills to
replace the position. Handling pay increases in this manner prevents
unneeded competition between workers and promotes teamwork since all will
reap the benefit of the increase rather than a few favorites (Anschutz,
1995, p. 27). In addition, by eliminating the annual rating or merit
system, tension is relieved creating room for pride in workmanship, which
contributes to further improvements (Drummond, 1992, p. 33).
Point XIII: Encouraging education and Self-improvement
Deming advises that businesses should promote the institution of
vigorous programs of education and self-improvement for every employee at
all levels (Drummond, 1992, p.35). Employees who have a career within a
certain corporation are more than likely to change positions due to newly
created jobs or the decline of out-of-date ones rather than changing to
gain an increase in pay. This is the main reason why there will presumably
always remain a need for educating employees (Anschutz, 1995, p. 28). As
employees advance in knowledge both within and outside the criteria of
their jobs, they gain satisfaction in this opportunity, which adds
increased self worth and dignity that in effect brings forth improvements
in themselves and the company as well (Drummond, 1992, p. 33).
Point XIV: Taking Action to Accomplish the Transformation
The final asset of Deming’s Fourteen Points is to put everyone in the
company to work in effort to accomplish a successful transformation
(Drummond, 1992, p. 35). It basically sets forth the motivation to
implement the previous thirteen points with vital patience. He emphasizes
that change takes time, but its long-term outcomes are worth the initial
costs and wait. He summarizes these approaches by a revision of Shewhart’s
Plan, Do, Check, Act Cycle into his own quadrille cycle (Drummond, 1992,
p. 33). Once this cycle is set into motion by the leader, the only one who
can start it, partnerships created from involvement form and the latter
springs from the former generating a self-sustaining project for the
future of the corporation (Anschutz, 1995, p. 28).
The Cycles of PDCA and PDSA
The continued improvement of total quality management should be based
on a circular system rather than a continuous single line because quality
should not be thought of as having an ending. Treating it as a linear path
does allow businesses to reach a specific goal, yet this stops them from
continuing to search for places that need further improvement and thus
prevents the creation of a new goal altogether. When it is treated as a
cycle the businesses will try to locate other faults and refine
improvements because as one rotation ends another one begins (Capezio and
Morehouse, 1995, p. 69). The cycle consists of stages. In sequence these
are plan, do, check, and act. Shewhart first created this process in the
early twentieth century and it held firm. It was revised by Deming from
check to study, thus establishing its initials of PDSA (Capezio and
Morehouse, 1995, p. 66).
Businesses using this cycle focus on productivity in the present and
for the future using various diagrams, charts, and the like to plan, do,
study, and act. Various diagrams include the activity network, affinity,
cause and effect, matrix, scatter and tree diagrams and to a certain
extent the interrelationships digraph. Multiple charts of this nature
include the control, flow, process decision program, Pareto, and run
charts and the histogram. The prioritization matrix is another useful
layout that businesses use to manage the quadrille cycle by organizing
ideas into groups that may correspond to the relationships another similar
item (GOAL / QPC, 2002).
Diagrams
The activity network diagram is one method of mapping activities into a
desired sequence. Its benefits include indicating the items that can be
done simultaneously and which ones will take longer to complete. The basic
use of an affinity diagram is to organize data after ideas are brain
stormed, written on cards, and grouped together corresponding to similar
ideas in effort to capture the main idea of the group. The cause and
effect diagram features the shape of continuously joined fish bones.
Ishakowa popularized the use of this particular diagram in Japan to list
the causes and initial sub causes of particular problems business faced.
Without the use of the matrix diagram, which shows various patterns of
relationships between items, some of the relationships between sets might
remain unnoticed. Scatter diagrams show a pattern of relationships between
two specified variables. When the scattered points of each variable join
to essentially create a single line that is more straight than wavered,
then the more apt it is that the two variables are related. The tree
diagram can be compiled using numerical or language data by forming a
logical progression from general to specific details of the information.
An interrelationship digraph also demonstrates any relationships between
items by drawing arrows from ideas that cause other ones and essentially a
result. Long-term objectives are recognizable by the arrows pointing
toward them, whereas the items with arrows protruding from them are
considered initial action items (GOAL / QPC, 2002).
Charts
The control chart is in essence a line chart, which organizes causes
into two main categories. These are common causes and special causes. The
former is considered the usual culprit that creates the continual
problematic circumstances, while the special causes originate from unique
events. Based on the work of Shewhart and Deming, a corporation can
mathematically construct control limits at three standard deviations above
and below a specified average, which determines these common and special
causes. Then the special causes can be extracted and in turn the common
causes can be reduced thus utilizing and improving quality. The flowchart
maps activities in order by distinction of various shapes representing
each aspect of the process. Information recorded in circles indicates
either an initial or ending action. Squares provide action items and the
diamond recognizes the decisions associated with such actions. The process
decision program chart initialed as PDPC is used for strategic planning
because it lists the steps of a particular activity, includes what could
go wrong at every step, and explains how to correct the possible mistakes
at each of these steps. It is usually diagramed in the style of a flow
chart or as a numerical tree diagram. The Pareto chart is named after the
Italian economist, Wifredo Pareto, and identifies the distribution of
items in order from the most to least frequent with the final category
representing miscellaneous expenditures or activities of the sort.
Essentially, it depicts where the initial effort should be put to gain the
most money or other such desired outcomes. The run chart provides a
summarized history of specific corporate plans and problems as well as
varied patterns that indicate which direction represents progression of
improvement and which one goes against it. This chart is used to determine
what problems need to be changed at the start of a newly implemented plan
and later to check or study which parts of the change process have lead to
a permanent improvement. The histogram is a bar chart that distributes
variables with the search of a normal distribution in mind. In other words
the chart identifies the average dispersal of causes that could result
into problems for the company. Prioritization matrixes enable priority
items to be easily selected by applying a set of criteria ranging from
simple to involved for each item (GOAL / QPC, 2002).
Conclusion
Total quality management has incorporated focused quality management
practices to create essential programs in the various sectors of public
administration and management. The principles designed be Deming over half
a century ago continue to promote success to many different types of
organizations. In order to view the progress of theses advancements and to
plan for future benefits, various means of organizing such data into
charts, diagrams, and other useful tools are incorporated into the total
quality management programs.
References
Anschutz, E. (1995). TQM America: How America’s most successful
companies profit from total quality management. Bradenton, FL: McGuinn & McGuire
Publishing, Inc.
Brelin, H., Davenport, K., Jennings, L., & Murphy, P. (1995). Focus
quality: Managing for results. New York: John Wiley & Sons, Inc.
Capezio, P., & Morehouse, D. (1995). Taking the mystery out of TQM: A
practical guide to total quality management (2nd ed.). Franklin Lakes, NJ: Career
Press.
Creech, B. (1994). The five pillars of TQM. New York: Truman Talley
Books / Dutton.
Drummond, H. (1992). The quality movement: What total quality
management is really all about! London: Kogan Page Limited.
GOALS / QPC. (2002). The TQM wheel. Retrieved Oct. 06, 2002 from the
World Wide Web: http://www.goalqpc.com/whatweteach/tqmwheel.asp
Milakovich, M., & Gordon, G. (2001). Public administration in America
(7th ed.). Belmont, CA: Wadworth Group / Thomson Learning.
Richardson, T. (1997). Total quality management. Albany, NY: Delmer
Publishers.
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