Total Quality Management: A Historical Evolution and Key Principles

Posted on Apr 27, 2024 in Economy

Introduction

Japan’s quality improvement program has significantly impacted global trade. In the United Kingdom, faulty products cost an estimated 10% of the gross national product, highlighting the importance of quality management.

The Importance of Product Quality

Kristensen, Dahlgaard, and Kanji (1993) emphasized the crucial role of product quality in various business aspects:

  • Relevance to business success
  • Impact on customer satisfaction
  • Contribution to profitability

Historical Evolution of Total Quality Management

Total Quality Management (TQM) has evolved through four distinct stages:

  1. Quality Inspection: Verifying quality through post-production inspections.
  2. Quality Control: Implementing statistical methods to identify and eliminate defects.
  3. Quality Assurance: Ensuring customer satisfaction by proactively preventing quality issues.
  4. Total Quality Management: Integrating quality principles into all aspects of business operations.

Early Developments

During World War II, complex manufacturing systems led to a shift from worker-driven quality control to inspection-based verification. Statistical quality control emerged as a method to separate good products from bad ones after production.

Quality Assurance and TQM

Quality assurance encompasses previous stages to guarantee customer satisfaction. TQM involves understanding and implementing quality management principles throughout the organization.

Deming’s 14 Points for Management

W. Edwards Deming believed that organizational problems stem from management processes and advocated using statistical methods for problem-solving. He proposed 14 key points for quality improvement:

  1. Constancy of Purpose: Continuously strive for improvement.
  2. The New Philosophy: Embrace a customer-centric approach.
  3. Cease Dependence on Inspection: Build quality into processes.
  4. End ‘Lowest Tender’ Contracts: Prioritize quality over price.
  5. Improve Every Process: Continuously optimize processes.
  6. Institute Training on the Job: Provide ongoing training and development.
  7. Institute Leadership: Foster a culture of leadership and support.
  8. Drive Out Fear: Encourage open communication and collaboration.
  9. Break Down Barriers: Promote teamwork and cross-functional collaboration.
  10. Eliminate Exhortations: Focus on systemic improvements, not slogans.
  11. Eliminate Targets: Emphasize quality over numerical quotas.
  12. Permit Pride of Workmanship: Empower employees to take ownership of their work.
  13. Encourage Education: Promote continuous learning and self-improvement.
  14. Top Management Commitment: Demonstrate unwavering commitment to quality.

Crosby’s Approach to Quality

Philip Crosby defined quality as conformance to requirements and measured it by the cost of non-conformance. He outlined four absolutes of quality management:

  1. Definition of Quality: Conformance to requirements.
  2. Quality System: Prevention-based approach.
  3. Quality Standard: Zero defects.
  4. Measurement of Quality: Cost of non-conformance.

Crosby also proposed 14 steps for quality improvement, emphasizing management commitment, teamwork, measurement, and continuous improvement.

Definitions of Quality

David A. Garvin identified five co-existing definitions of quality:

  1. Transcendent: Excellence or superior quality.
  2. Product-Based: Quantity of desirable attributes.
  3. User-Based: Fitness for intended use.
  4. Manufacturing-Based: Conformance to specifications.
  5. Value-Based: Satisfaction relative to price.

Garvin, Harvey, and Green further elaborated on five interrelated definitions:

  1. Exceptional: Distinctive, high-class, or exceeding expectations.
  2. Perfection: Consistency and zero defects.
  3. Fitness for Purpose: Meeting the intended use or purpose.
  4. Value for Money: Balancing cost with quality and reliability.
  5. Transformative: Fundamental change or improvement.

Conclusion

Total Quality Management has evolved significantly over time, with various experts contributing key principles and methodologies. By understanding these concepts and implementing effective quality management practices, organizations can achieve sustainable success and deliver exceptional value to their customers.