The underlying theory is simple: a company can still fail even if it produces high quality goods. It could, for example, have a bloated management structure. What TQM does is it allows the company to manage everything so that senior management knows the value that all parts of the company contribute to the bottom line. With this high level of control, the total quality movement focuses on enhancing quality through the synthesis of structure and strategy (Lowder, 2007). For example, a firm that derives competitive advantage through its reputation for high quality will design its organization and its systems so that every aspect of the organization supports that strategy. The same is true of a firm with a cost leadership strategy. At Wal-Mart, for example, every aspect of that company is designed to lower the cost per unit sold. Companies that rely on innovation likewise have designed their organization and quality systems so that innovation is fostered at every turn.

The movement takes the ideas behind total quality management, and scientific management in general, and applies them holistically, so that the entire organization is moving in the same direction, towards the same output objectives. The total quality movement is something that has been around for a few decades and has gained momentum in this time. Related concepts such as Six Sigma management have been introduced and popularized as means of implementing TQM across all areas of an organization, following the example set by industry leaders such as Motorola.

5. The philosophy behind TQM is essentially the same one that William Shewhart introduced -- that all aspects of the organization can be quantified and measured. Anything that can be measured can then be subject to scientific study in a relatively controlled environment. That is to say that changes can be made and then the impacts of those changes can be measured. By this means, the company can determine the best practices. It is not necessary that this take place by trial and error, either. In TQM, knowing what works in one area can help to devise strategies to make in other areas. This is because when all aspects of the company are quantified, the relationships between all actions the company undertakes...

The underlying principle behind TQM therefore is that by studying all elements of the company with respect to how those different elements impact on the company's desired objectives, adjustments can be made that will support enable the company to improve its performance. It is believed that performance can always be improved, even if this means inventing new concepts or technologies to facilitate that improvement.
6. There are a number of useful links that can help one to understand the concepts behind TQM. The American Society for Quality's website provides some understanding of the concepts that lie behind TQM: http://asq.org/learn-about-quality/total-quality-management/overview/overview.html

There are further explanations of TQM including its history and some helpful resources at the Business Performance Improvement Resource (BPIR) webpage: http://www.bpir.com/total-quality-management-history-of-tqm-and-business-excellence-bpir.com.html

For a specific quality management technique that fits within the TQM paradigm of full organizational quality management, the iSixSigma website explains that particular concept in detail and has numerous articles: http://www.isixsigma.com/index.php?option=com_k2&view=item&id=1463:what-is-six-sigma?&Itemid=155

The Quality Portal is another portal site that includes numerous articles and explanations of TQM concepts and others related to quality management, such as Six Sigma and Lean Manufacturing: http://thequalityportal.com/tqm.htm

Another website providing background on TQM concepts is Quality Assurance Solutions.com, and their site can be found here: http://www.quality-assurance-solutions.com/TQM-History.html

Works Cited:

Lowder, T. (2007). An analysis of the total quality movement: In search of quality enhancement through structure and strategic synthesis. White paper. Retrieved October 14, 2011 from http://ssrn.com/abstract=1016588