Total Quality Management (TQM) refers to strategies used by businesses to improve both quality and productivity. It’s a holistic management approach that spans across the entire organization, engaging all departments and employees. TQM also extends its reach to include both suppliers and customers, ensuring a broad commitment to quality throughout the supply chain.
TQM is one of many terms that describe quality-focused management systems. Other terms include CQI (Continuous Quality Improvement), SQC (Statistical Quality Control), QFD (Quality Function Deployment), QIDW (Quality in Daily Work), and TQC (Total Quality Control). Like these systems, TQM serves as a framework for implementing effective quality and productivity measures that help organizations improve their profitability and competitiveness.
Key Principles of Quality Management:
- Customer Focus: Organizations rely on their customers, so they must understand current and future needs, fulfill customer requirements, and aim to exceed their expectations.
- Leadership: Leaders set clear goals, provide direction, and create a work environment where people are fully engaged in achieving the organization’s objectives.
- Employee Involvement: All employees are vital to the organization, and their full participation enables the business to utilize their abilities to its advantage.
- Process Approach: Managing related activities and resources as a process leads to more efficient achievement of the desired outcome.
- Systematic Management Approach: Understanding, identifying, and managing interrelated processes within a system contributes to the organization’s efficiency and effectiveness.
- Continuous Improvement: Ongoing improvement should always be a key goal of the organization.
- Factual Decision Making: Decisions should be based on logical analysis of relevant data and information.
- Supplier Relationships: Building mutually beneficial relationships with suppliers enhances the ability of both the organization and its suppliers to create value.