MBS8117: VOL 9.

TOTAL QUALITY MANAGEMENT AS AN INTERVENTION

i) Total Quality Management (TQM)

ii) Consequences of TQM

iii) Application and tools for quality management

iv) Product/service certification by UNBS

Total Quality Management (TQM)

Total quality Management is a systematic quality improvement approach for

firm wide management for the purpose of improving performance in terms of
quality, productivity, customer satisfaction and profitability (Gharakhani, et al
2013. It is therefore, the art of managing the whole to achieve excellence over
product and service. It is concerned with all activities required to ensure that
products and services conform to the standards set by the organisation and
meet the customer expectations. These activities include steps taken to ensure
that high quality standard is achieved through quality assurance and control.
Other authors have defined TQM differently:

 TQM is the management approach of an organization centered on

quality, based on participation of all its members and aiming at long
term success through customer satisfaction, and benefits to all members
of the organization and to society (Liungstrom & Klesjo, 2002).
 TQM seeks continuous improvement in the quality of all processes,
people, products and services of an organization. The emphasis is an
employee involvement and empowerment along with customers and
customer satisfaction as the focal point. Thus continuous quality
improvement capability is essential for global competitiveness.
Tenets of TQM: include (Ugboro & Ubeng, 2000)

1) Continuous improvement
2) Top management leadership commitment to the goals customer
3) Employee empowerment
4) Customer focus and satisfaction
5) Managing supplier quality
6) Product designs and
7) Use of quality tools

TQM means that organisational culture is defined by and supports the

constant attainment of customer satisfaction through an integrated system of
tools, techniques and training.

The common theme of all frameworks is that TQM is based on a prevention

work process that strives to increase quality and efficiency, improve
productivity and enhance customer satisfaction.

The core values and beliefs essential in implementing a TQM process include
the following elements

1) Quality information must be used for improvement

2) Not to judge or control people
3) Authority must be equal to responsibility
4) There must be rewards for results
5) Cooperation, not competition, must be the basis for working
6) Employees must have secure jobs
7) There must be a climate of fairness
8) Compensation should be equitable.
9) Employees should have an ownership stake/ goals

Application stages of total quality management

TQM is implemented in 5 major steps:
 1. Gain long term management commitment.
This involves helping top management/executives understand the importance
of long term commitment to TQM, since they have the authority and larger
perspective to address the organisational wide cross functional issues that
enhance TQM success. They give direction and support, clarify and
communicate a new orientation to producing and delivering products and
services during the change process.
2. Train members in quality methods
Includes training in the principles and tools of quality improvement. Members
learn problem solving skills and simple statistical process control (SPC)
techniques that focus on the 7 tools of quality.
3. Start quality improvement projects
Here individuals and work groups apply the quality methods to identify the few
projects that hold promise for largest improvement in organization processes.
They identify output variations, intervene to minimize deviations from quality
standards and monitor improvement. Thus identifying quality variations is a
key aspect of TQM.
4. Measure progress
This involves measuring organisational progress against quality standards, to
meet or exceed competitors’ benchmark.
5. Rewarding improvements in quality
TQM rewards members for process-oriented improvements such as increased
on-time quality delivery, gains in customers’ perceived satisfaction with
product performance and reduction in cycle time i.e. time taken for a product
or service to be conceived, developed, produced and sold.

Benefits of TQM: These include:

Lower costs

Costs can be lowered by reducing errors, reducing cost of work redesign and
reducing non value added work.
Higher revenues/financial performance

High quality leads to higher revenues through customer satisfaction, increased

market share, improved customer retention, morale, loyalty of customers and
premium prices.

Delighted/satisfied customers- continuously purchase goods and services,

advertise goods/services for the company they are loyal to.

Empowered employees

Empowered employees have the means to measure the quality of their own
work process, to interpret the measurements and compare these
measurements to goals and take action when the process is not on target.
Employees also get to comprehend who their customers are including their
needs, wants and expectations. In addition they learn how to design new goods
and services to meet these needs; develop the necessary work processes,
develop and use quality measurement and continuously improve these
processes.

Other benefits of TQM are (Davies 2003)

-Improved company image

-Improved certainty in operations
-Improved morale
-Improved management
-Committed customers
-Reduces waste of manpower, machine time and materials.
 Obstacles to TQM

The primary reason for TQM failure in organizations is due to hurriedly

implemented TQM. Many organizations are not willing to undertake the total
cultural transformation that TQM essentially requires.

The five barriers to TQM include

i) Inadequate HRD and Human Resource Management

ii) Lack of planning for quality
iii) Lack of motivating leadership for quality
iv) Inadequate resources for TQM
v) Lack of customer focus.

Others often cited problems/obstacles include:

1) Getting all stakeholders on board to move in the same direction.

2) Lack of goals
3) Insufficient knowledge
4) Lack of management commitment
5) Lack of proper training
6) Failure to use the right framework
7) Incompatibility attitudes of top management towards workers
8) Poor organisational health.

The 6 core concepts for the realization of TQM in service sector are:

1. Transformational leadership
2. Customer orientation
3. Improved HRM
4. Organisational culture
5. Continuous improvement
6. Quality measurement
Product certification
Certification involves the issuance of certificates or mark or both by a third
party to demonstrate that a specific product meets a defined set of
requirements such as safety and fitness, for use or interchangeability
characteristics for the product or service, usually specified in the standard.
The mark carries a reference to a number or name of the relevant product
standard against which the product has been certified.
The product certification is usually found
-on the product
-on the packaging
-or on the certificate issued by the product certification body.

The process of product certification falls under the steps below

-Obtain an application form from UNBS
-Fill in and return the form to UNBS
-The submitted information is evaluated and cross validated by experts
-Auditors from UNBS visit the firm/business of applicant for auditing
-When auditors are satisfied with the findings a permit to use the quality mark
is issued/granted to the applicant by UNBS.

Benefits of product certification

-Wins customer confidence
-enhances product representation both locally and internationally
-Protects against unfair competition from inferior products on the market

Functions and Challenges of Uganda National Bureau of Standards (UNBS)