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Thursday, April 1, 2010

Total Quality Management

Total Quality Management is a management style based upon producing quality service as defined by the customer. TQM is defined as a quality-centered, customer-focused, fact-based, team-driven, senior-management-led process to achieve an organization’s strategic imperative through continuous process improvement. TQM principles are also known as total quality improvement, world-class quality, continuous quality improvement, total service quality, and total quality leadership.

The word "total" in Total Quality Management means that everyone in the organization must be involved in the continuous improvement effort, the word "quality" shows a concern for customer satisfaction, and the word "management" refers to the people and processes needed to achieve the quality.

Total Quality Management is not a program; it is a systematic, integrated, and organizational way-of-life directed at the continuous improvement of an organization. It is not a management fad; it is a proven management style used successfully for decades in organizations around the world. TQM is not an end in itself; it is a means to an organizational end. Total Quality Management must not be the primary focus of an organization; it should merely be the means to achieve organizational goals.

Total Quality Management differs from other management styles in that it is more concerned with quality during production than it is with the quality of the result of production. Other management styles have different concerns. Some major styles are compared with TQM as follows.

Management-by-Objectives (MBO) emphasizes achieving specified objectives, under the control of individual managers. This approach works against multi-functional process performance and interferes with teamwork and quality. TQM is not objective-oriented, except for its one goal of achieving continuous quality improvement.

Management-by-Results (MBR) is management by viewing past results as an indication of future results. It has been compared to driving an automobile in a forward direction while looking in the rear view mirror. In today’s fast-paced, quick-changing business environment, managers cannot rely on past results as a predictor of future performance. In contrast, TQM is only concerned with current results and ways to improve them.

Management-by-Exception (MBE) is management by identifying specific targets for management attention and action. It produces short-term results by reacting to immediate problems, but there is no analysis of the processes that produced the problems, so long-term benefits are lost. On the other hand, TQM is more concerned with correcting processes that produce problems than it is with responding to individual problems.

Total Quality Management is very different from these and other management systems. It recognizes that quality as determined by the service provider might be much different from quality as perceived by the service receiver. If the customer is not satisfied with a service, then the service does not have quality and the processes that produced the service have failed.

Total Quality Management requires an organizational transformation-a totally new and different way of thinking and behaving. This transformation is not easy to achieve; it is not for the weak or the statistically untrained. At first glance, many TQM techniques may seem simple and based on common sense, but they must be understood and used correctly for TQM to function properly. Knowing the history of Total Quality Management may help in understanding its techniques.

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