TOTAL QUALITY: HISTORY, THEORY, STAGES AND EXAMPLES - DUDAS - 2025

The Total Quality Management (Total Quality Management) consists of the efforts of an entire organization to install and create a permanent climate where employees continually improve their ability to provide products and services that customers find a particular value.

It is the ongoing process of reducing or eliminating errors in production, simplifying supply chain management, improving the customer experience, and ensuring employees are up-to-date with their training.

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The focus of the process is to improve the quality of an organization's products, including goods and services, through continuous improvement of internal practices.

Total quality aims to hold all parties involved in the production process accountable for the overall quality of the final product or service.

It was developed by William Deming, a management consultant whose work had a major impact on Japanese manufacturing. Although total quality has a lot in common with the Six Sigma improvement process, it is not the same.

Main features

Total quality focuses on ensuring that internal regulations and process standards reduce errors. On the other hand, Six Sigma seeks to reduce defects.

"Total" emphasizes that all other departments besides production, such as accounting and finance, sales and marketing, and design and engineering, are required to improve their operations.

Executives are required to actively manage quality through funding, training, staffing, and goal setting.

While there is no widely accepted approach, total quality efforts rely heavily on previously developed quality control tools and techniques.

Total quality enjoyed widespread attention in the late 1980s and early 1990s, before being overshadowed by ISO 9000, Lean Manufacturing, and Six Sigma.

History

Inspection

In 1911, Frederick Taylor published The Principles of Scientific Management. One of Taylor's concepts was that the tasks were clearly defined and performed under standard conditions.

Inspection was one of these tasks and was intended to ensure that no defective product left the factory. An important idea that emerged from the inspection was to prevent defects, leading to quality control.

QA

It was introduced to detect and solve problems along a production line to avoid the manufacture of defective products.

Statistical theory played an important role in this area. In the 1920s, W. Shewhart developed the application of statistical methods for quality management.

He showed that a variation in the production process leads to a variation in the product. Therefore, by eliminating variations in the process, there is a good standard for the final product.

Quality in Japan

In the 1940s, Japanese products were perceived as poor quality. Japanese industrial leaders recognized this problem and sought to manufacture high-quality products.

They invited some quality gurus, like Deming, Juran, and Feigenbaum to learn how to achieve this goal. They took their advice and in the 1950s quality control developed rapidly, becoming the main subject of Japanese management.

Quality circles started in the early 1960s. These are groups of workers who discuss improvements in the workplace, presenting their ideas to management.

One result of the quality circles was employee motivation. The workers felt they were involved and were also heard.

Another result was the idea of ​​improving not only the quality of the products, but also all the organizational aspects. This was the beginning of the total quality idea.

Total quality

The term "total quality" was first used in 1969 in an article by Feigenbaum at the first international conference on quality control in Tokyo.

Ishikawa also discussed "total quality control" in Japan. By his explanation, it meant quality control throughout the company, involving everyone from top management to workers.

Total quality management

In the 1980s and 1990s, total quality began, also known as Total Quality Management (TQM). Western companies began to present their own quality initiatives.

Awards for quality and models of excellence

In 1988, the Malcolm Baldrige Award was developed in the United States. It represented the first clearly defined and internationally recognized quality management model.

In 1992 a similar model was developed by the European Foundation for Quality Management. This model of excellence is the framework for the European Quality Award.

Theory and principles of total quality

Focus on the customer

When using TQM, it is of utmost importance to remember that only customers determine the level of quality.

Only customers determine, by evaluating or measuring their satisfaction, if efforts have contributed to the continuous improvement of product quality and services.

Participation of the workers

Employees are internal customers of an organization. The participation of employees in the development of the products or services of an organization thus largely determines their quality.

A culture must be created in which employees feel they are involved with the organization, and with its products and services.

Focused on the process

Managing the process is a fundamental part of total quality management. Processes are the guiding principle and people support these processes based on basic objectives, linked to the mission, vision and strategy of the company.

Integrated system

It is important to have an integrated organization system that can also be modeled.

For example, ISO 9000 or a company quality system to understand and manage the quality of an organization's products.

Strategic and systematic approach

A strategic plan should encompass the integration and development of quality, in addition to the development or services of an organization.

Decision-making based on facts

Decision-making within the organization should only be based on facts and not on opinions, such as personal interests and emotions. Data must support this decision-making process.

Communication

A communication strategy should be formulated in such a way that it is in line with the mission, vision and objectives of the organization.

This strategy includes, at all levels within the organization, the communication channels, the capacity to measure effectiveness, the opportunity, etc.

Continuous improvement

By using the right measurement tools, and innovative and creative thinking, continuous improvement proposals will be initiated and implemented so that the organization can develop to a higher level of quality.

Stages of quality

Practice has shown that there are a number of basic stages that contribute to a successful deployment of total quality within an organization. These stages are:

Clarifying vision

If a company wants to be known for its quality, it must begin by defining "quality." Is the delivery of a product or service without errors? Is it a higher return on investment for clients?

Define success

Total quality initiatives must be actionable and measurable. Identifying critical success factors, such as customer satisfaction and market share, enables companies to align their actions with their objectives.

Involve everyone

At TQM, customer satisfaction is not limited to one department. Nor is it the sole responsibility of management. All employees contribute to the cause.

Companies should inform employees of their roles and solicit their input before planning any approach.

Approach planning

After a company decides on the desired improvement, such as increasing the customer satisfaction score, it takes steps such as:

- Define the problem: customers are not happy.

- Collection of related data: customer survey responses from the last three months.

- Finding the root cause: Customers wait too long on the phone for service.

Do the work

Total quality helps you address problems systematically and also seize opportunities by following these steps:

- Develop a solution: Automatically route calls to the next available customer service representative.

- Choose a measurement: waiting time for customers.

- Implement the change: Start automatic call routing.

Check results

Companies can evaluate the effectiveness of their TQM initiatives by comparing data before and after changes.

If automatic call routing to the next available service representative is successful, then the company should see shorter wait times for customers. Satisfaction scores should also increase.

Act on findings

A company can gain long-term benefits by documenting the results of successful TQM initiatives and sharing them across the organization.

Systematized improvements

The process used to increase customer satisfaction scores could be applied to other problems as well, based on lessons learned.

Examples

-Ford Motor Company

At Ford Motor Company, his slogan is "Ford Has a Better Idea." In the 1980s, when total quality practices were broad, the slogan "Quality is job number 1" made more sense.

When Total Quality was first used at Ford, it was started through a joint venture.

By partnering with ChemFil, a division of PPG Industries, Ford wanted to produce better quality products, with a stable working environment for the workforce, effective management and profitability.

During the 1990s, "Quality is job number 1" became "Quality People, Quality Products."

With paint supplier ChemFil, the painting process was developed, thus ensuring that a quality product that meets customer needs will translate into financial success.

TQM meant that processes were strictly followed at all levels of production, constantly being developed and improved, primarily through customer satisfaction surveys.

TQM at Ford

Total quality changed Ford waste and lack of quality on many levels. Beginning in 2008, the warranty repair rate for Ford decreased 60%.

The engineering and design analysis process made it possible for problems to arise, which previously would not have appeared until the products were launched.

The company's quality system is crucial to identifying and also correcting problems within the manufacturing facility.

It was implemented in every plant, including cross-functional groups of engineers, plant managers and production specialists, all of whom were experts in problem solving.

-Mercadona

Mercadona is an outstanding example of total quality management, because the company has developed the model with a series of characteristics that are practically unique.

The transformation process

In 1981, Juan Roig, son of the company's founder, took control of the company, transforming it from being a small chain in Valencia, to a large company.

This expansion coincided with the global growth of the supermarket sector in Spain. This growth then attracted other competitors from Europe to enter Spain.

During the 1990s, the supermarket sector in Spain was concentrated in chains run by foreign multinationals. Consequently, competition increased and margins narrowed.

To face this situation, Mercadona adjusted the prices it paid to suppliers and also launched advertising campaigns to promote its products. However, this approach did not produce the expected results.

Seeking to change all the dynamics of the sector, in 1993 Roig decided to implement the total quality management model. Mercadona's business strategy was summarized in the motto: "Always low prices."

Implementation of total quality

Mercadona reduced its advertising expenses, canceled all its offers and promised to always sell at low prices.

He began to change his relationship with suppliers, going from being a difficult negotiator to a company loyal to his suppliers.

Management believes that the TQM model has been the key to having annual growth figures of 25.2% and the company's impressive financial results.

customers

Mercadona has oriented its entire business model towards total customer satisfaction. Therefore, the role of leadership and the entire organization is to serve customers.

Follow a policy of low prices, eliminating discounts and promotions. He also maintains a constant dialogue with the client.

Quality

Instead of offering a large number of brands, it seeks to cover all the needs of consumers.

The company selects and recommends products based on their quality and low price. This guarantees the authenticity of its contents, the place of origin and the expiration date.

Labor force

Mercadona's workforce is another pillar of the TQM model. It is about getting workers to adjust to a work environment where quality is the highest priority.

Before starting work, they receive nine weeks of training on the TQM model and on Mercadona's culture.

References

1. Wikipedia, the free encyclopedia (2018). Total quality management. Taken from: en.wikipedia.org.
2. Will Kenton (2018). Total Quality Management - TQM. Taken from: investopedia.com.
3. Van Vliet (2009). Total Quality Management (TQM). ToolsHero. Taken from: toolshero.com.
4. Bpir (2018). History of Quality. Taken from: bpir.com.
5. Bright Hub PM (2018). Ford Motor Company and Total Quality Management (TQM): A History. Taken from: brighthubpm.com.
6. Wharton University of Pennsylvania (2008). For Mercadona, Spain's Leading Supermarket, TQM Has Been an Excellent Investment. Taken from: knowledge.wharton.upenn.edu.
7. Jim Molis (2018). Steps in Total Quality Management. Bizfluent. Taken from: bizfluent.com.