Total Quality Management (TQM)

Total Quality Management (TQM) is a philosophy of quality management that originated in Japan in the
1950s.

Total - means that everyone in the value chain is involved in the process, including employees, customer
and suppliers

Quality - products and services must meet the customers' requirements

Management - quality is actively managed rather than controlled so that problems are prevented from
occurring.

Key principles of TQM

There are three basic principles of TQM:

(1) Get it right, first time

TQM considers that the costs of prevention are less than the costs of correction. One of the main aims
of TQM is to achieve zero rejects and 100% quality.

The aim of TQM is thus to get things right first time. This contrasts with the traditional approach that
less than 100% quality is acceptable. TQM will result in an increase in prevention costs, e.g. quality
design of systems and products, but internal and external failure costs will fall to a greater extent.

(2) Continuous improvement

The second basic principles of TQM is dissatisfaction with the status-quo. Realistically a zero-defect goal
may not be obtainable. It does, however, provide a target to ensure that a company should never be
satisfied with its present level of rejects. The management and staff should believe that it is always
possible to improve and to be able to get it more right next time!
Quality management is thus not a one-off process, but is the continuous examination and improvement
of processes.

(3)Customer focus

Quality is examined from a customer perspective and the system is aimed at meeting customer needs
and expectations

A quality management programme is a relatively modern approach to quality. It will require a significant
investment in prevention costs but should minimise or eliminate appraisal, internal failure and external
failure costs.

As stated above, the 'total' in TQM means that everyone in the value chain is involved in improving
quality, including:

Employees - they are expected to seek out, identify and correct quality problems. Teamwork will be
vital.

Suppliers - quality and reliability of suppliers will play a vital role.

Customers - the goal is to identify and meet the needs of customers.

Managers must be committed and encourage everyone else to be quality conscious.

One aspect of this is the idea that everyone has a customer who's needs and expectations they should
be trying to meet and exceed.