3.2 TQM
The normal response to seeing an acronym is to expect it to last a short time and then be replaced by another "flavour" in business management recipe books. Unlike other acronyms it does not look like we will get rid of TQM very quickly. It has been with us for a few decades now and its principles do not appear to be becoming redundant. Realistically, we should expect it to be around for the foreseeable future, even if new acronyms are devised to market the same principles.
The term TQM conveys a holistic approach to quality and business management. The implication is that this approach goes beyond just the production process, encompassing everything the company does because everything impacts upon the final output. In reading the annual report of Ford Motor Company, you would have identified the focus on quality, customers, continuous improvement, employees and business partners, including dealers. In addition, the company makes a strong statement about its integrity - an example is the incident of tyres supplied by Firestone.
TQM is a philosophy which permeates throughout the company. In addition, TQM provides some tools that can be employed in maintaining quality as well as implementing the philosophy in the everyday business of the company. The main principles of TQM may be summarised as:
- customer focus
- prevention of poor quality rather than fixing its effects
- attitude of continuous improvement ( kaizen )
- measurement and identification of opportunities to improve
- removal of inefficiencies and non-productive costs.
The fundamental role of senior management is to make the organisation more productive and competitive (the link to quality). High quality and productivity translate to high profits and lower costs. TQM, it is said, helps to deliver these by:
- helping a company produce better and more reliable goods (or services) that result in greater customer satisfactions;
- reducing waste and increasing responsiveness to market needs;
- improving delivery and lead times for products; and
- better utilisation of resources.
It is widely reported in customer services literature that only a very small percentage of dissatisfied customers actually express their unhappiness to the organisation. Of those that do, only half will return to the organisation for further business if their complaints are properly handled and followed up. Moreover, a happy customer only tells about three others while the unhappy one will tell at least 11. This makes it clear that the organisation needs to focus its energies on making and keeping customers happy. Improved quality, and reliability through reduced failures, lead to higher productivity and reduced costs.
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