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Unlock This CourseTotal Quality Management (TQM) is a business approach that focuses on making everything a company does as good as possible. It's not just about checking products at the end - it's about building quality into every single step of the process, from the very beginning to when the customer receives their product or service.
Think of TQM like a football team where every player, from the goalkeeper to the striker, works together to win matches. In business, this means everyone from the cleaner to the managing director plays a part in delivering quality.
Key Definitions:
TQM believes that quality isn't just the responsibility of one department - it's everyone's job. This means the person who answers the phone, the factory worker and the delivery driver all play a crucial role in creating a quality experience for customers.
TQM is built on several key principles that work together like ingredients in a recipe. Each principle is important, but they're most effective when used together.
Everything in TQM starts with the customer. This doesn't just mean external customers who buy products, but also internal customers - other departments within the company who rely on your work.
People who buy your products or services. Their satisfaction determines business success.
Other departments in your company who depend on your work to do their jobs well.
Regular communication to understand what customers want and how to improve.
Toyota uses TQM principles to put customers first. They regularly survey customers, study their driving habits and even visit customers' homes to understand their needs better. This customer focus helped Toyota become one of the world's most trusted car brands, with customers often staying loyal to the brand for decades.
TQM recognises that the people doing the actual work often know best how to improve it. This principle involves giving employees the power and responsibility to make improvements in their own work areas.
In traditional businesses, quality checking happens at the end of the process. TQM changes this by making everyone responsible for quality at every step. This prevents problems from building up and reduces waste.
Workers are given authority to stop production if they spot quality problems, suggest improvements and implement changes in their work areas. This creates a sense of ownership and pride in their work.
TQM believes there's always room for improvement, no matter how good things already are. This principle, called 'Kaizen' in Japanese, means making small, regular improvements rather than waiting for big changes.
Making tiny improvements every day that add up to big changes over time.
Encouraging new ideas and creative solutions from all employees.
Using systematic approaches to identify and fix issues before they become bigger problems.
McDonald's uses TQM principles to continuously improve their service. They time everything from how long it takes to serve customers to how quickly they can clean tables. Employees regularly suggest improvements, like better ways to organise the kitchen or faster payment methods. These small improvements help McDonald's serve millions of customers efficiently every day.
TQM looks at the business as a series of connected processes rather than separate departments. This helps identify where problems occur and how improvements in one area can benefit the whole organisation.
Every business has processes - series of steps that turn inputs into outputs. TQM focuses on understanding and improving these processes to deliver better results.
Drawing out each step in a process to see where delays, waste, or quality problems might occur. This helps businesses understand how work really flows through their organisation.
When businesses successfully implement TQM, they often see improvements in multiple areas. These benefits don't happen overnight, but they build up over time as the TQM culture becomes embedded in the organisation.
Less waste, fewer defects and more efficient processes lead to lower costs and higher profits.
Better quality products and services lead to happier customers who are more likely to return and recommend the business.
Workers feel more valued and motivated when their ideas are heard and they can see their impact on quality.
While TQM can bring great benefits, it's not always easy to implement. Understanding these challenges helps businesses prepare better for their TQM journey.
TQM requires significant changes in how people think and work. This can be difficult, especially in organisations that have operated in traditional ways for many years.
TQM results don't appear immediately. It can take months or even years to see the full benefits, which requires patience from management and employees.
John Lewis has used TQM principles for decades, focusing on employee ownership and customer service excellence. They understand that quality improvement is a long-term commitment. Their "Never Knowingly Undersold" promise and reputation for excellent customer service didn't happen overnight - it took years of consistent focus on quality and continuous improvement. This long-term approach has made them one of the UK's most trusted retailers.
TQM is one of several approaches businesses can use to improve quality. Understanding how it compares to other methods helps explain when TQM might be the best choice.
Traditional approach that checks quality at the end of the process. Less comprehensive than TQM.
Focuses on preventing defects through better processes. TQM includes this but goes further.
Comprehensive approach involving everyone in the organisation in continuous quality improvement.
For TQM to work, businesses need to approach implementation carefully and systematically. Success depends on getting everyone involved and committed to the quality journey.
Several factors determine whether TQM implementation will be successful. The most important is having strong leadership commitment and clear communication about why quality matters.
Senior managers must demonstrate their commitment to quality through their actions, not just their words. They need to provide resources, support and consistent messaging about the importance of quality.
TQM isn't just for manufacturing - service businesses like hotels, restaurants and banks also use these principles. For example, Premier Inn uses TQM approaches to ensure consistent service quality across all their hotels. They train all staff in quality principles, regularly gather customer feedback and continuously improve their processes based on what they learn.