This paper provides an overview of Total Quality Management (TQM) as an integrated organizational approach aimed at improving quality at every level. It traces TQM's historical development from early 20th-century product inspection methods through the statistical innovations of the 1940s and the broader strategic orientation that emerged in the late 1970s. The paper then outlines the core principles underlying TQM — including customer focus, total employee involvement, integrated systems, and a strategic and systematic approach — before surveying the practical applications of TQM in enhancing productivity, product reliability, competitive advantage, and customer service.
Total Quality Management (TQM) is an integrated organizational approach developed to improve quality at every level of an organization. The description of quality is largely dependent on the role of the individuals engaged in defining it. Businesses and firms that fail to prioritize quality face significant risks to their long-term survival, because customers in the modern market demand and expect high quality from the organizations they patronize. In most cases, total quality management is described as the management system for a customer-oriented company that involves all employees in the continual development of all organizational aspects.
This management system utilizes strategy, data, and efficient communication to incorporate the principles of quality into all activities and the broader culture of the organization. The core of Total Quality Management is therefore a managerial approach that focuses on long-term success through customer satisfaction. To achieve that satisfaction, the TQM effort ensures that all organizational members are involved in enhancing processes, goods and/or services, and the culture in which they work.
The history of total quality management can be traced back to the early 1920s, when statistical theory was first applied to the control of product quality ("History of Quality," n.d.). The concept of quality has existed for many years, despite changes in its meaning and evolution over time. As total quality management emerged in the early 20th century, quality management was essentially defined as the process of inspecting products to ensure they adhered to certain specifications. One of the major developments in this concept occurred in the 1940s, when statistical sampling procedures were used to analyze quality and quality control charts were introduced to supervise production processes.
Through the contributions of several quality theorists, the concept took on a wider meaning in the 1960s and came to encompass the whole organization, rather than being limited to the production process alone. This broader context reflected the understanding that all organizational functions affect product quality. During this period, quality was still viewed as something that needed to be inspected and corrected — a perspective that changed significantly in the late 1970s.
The late 1970s shift in the perception of quality is largely attributed to the loss of market share experienced by many U.S. industries at the hands of foreign competitors. As part of their survival strategies, many companies were forced to make drastic changes to their quality programs, resulting in the emergence of a new quality concept. This concept adopted a strategic meaning, as companies across every industry began focusing on quality improvement in order to become more competitive ("Total Quality Management," n.d.). This development contributed significantly to the formation of today's total quality management concept, as quality excellence has since become a standard expectation in business operations.
As one of the central concepts in modern business operations, total quality management is grounded in several important principles, including the following:
Being customer-focused is the foundational principle of total quality management, because customers are the key determinants of the level of quality. Despite the numerous efforts a company may undertake for quality improvement — such as employee training — customers are ultimately the only stakeholders who determine whether those efforts are effective. Customers should therefore be central to any quality improvement initiative undertaken by an organization.
An organization's efforts for quality improvement should be directed toward providing a favorable working environment that promotes employee development, alongside an increased emphasis on process-centered thinking.
Total quality improvement is rooted in the development of an integrated system in which all employees understand the vision and mission of the organization. This also requires an efficient communication strategy in which timelines and methods are clearly defined.
Integrating quality as a core component of organizational strategy is a major principle of total quality management, requiring both a strategic plan and a systematic approach. Analytical tools, quality instruments, and creative thinking are used to drive greater effectiveness and support continual improvement ("What is Total Quality Management," n.d.).
"TQM applied to productivity and competitiveness"
Throughout history, total quality management has developed into an important concept in modern business operations. This is largely because the concept is grounded in core principles that can be applied across multiple organizational areas to improve profitability and sustain long-term success.
"Chapter 5 — Total Quality Management." (n.d.). Wiley — Knowledge for Generations. Retrieved March 19, 2012, from http://www.wiley.com/college/sc/reid/chap5.pdf
"History of Quality." (n.d.). Business Performance Improvement Resource. Retrieved March 19, 2012, from
"What is Total Quality Management." (n.d.). Business Excellence — The Way Business Should Be Done. Retrieved March 19, 2012, from
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