Total Quality Management Example | Principles and Examples of TQM

Introduction to Total Quality Management Example

Total quality management concept adopts a different approach for management, which focus on the overall development of the organization, satisfy customer’s needs while keeping an eye on organization’s goal and important human resource (employees) are kept updated with all techniques and with open room for learning. In this topic, we are going to learn about Total Quality Management Example.

Total quality management got recognition in Japan after world war 2 (by W. Edwards), Japanese used TQM for re-constructing their economy after the destruction caused by world war.

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It was originated to increase the quality of services and bring high results, this concept became popular from the early 1980s. Every organization requires quality in all aspects and remove defects, waste from operations. Total quality management method involves management and employees to produce goods and services to increase the business and reduce losses due to unwanted practices, “quality is a predictable degree of uniformity and dependability at low cost and suited to the market”.

The total quality approach describes the culture, attitude, and organization that makes a commitment to provide improved products and services that satisfy customers requirements. Total quality management is the management strategy which involves the improvement process of employee- employee’s relations, consumer- business relationship to get better results in the production of goods and services.

Total quality management technique is an enhanced version of doing business, businesses can rely on total quality management for the survival of business in this fast and competitive market. It just requires up-gradation and change in actions of management which lead to the transformation of actions and the culture. Total quality management is a combination of 3 words-

Total – Whole in it.

Quality – Excellent products and services.

Management – The manner of handling.

With the combination total quality management is the strategy or art of managing the whole to achieve the successful target. The key factor in total quality management is an application of quantitative methods and human resources, these both are the major focus to improve the process and deliver best to customers and collect customer back with new demands. Total quality management requires a very disciplined approach, with management techniques and existing upgraded efforts and a toolset.

Principles of Total Quality Management

Total quality management follows a few defined principles –

1. The top management is responsible for the quality of the product management which should create a draft of organizational structure, design, and process (production) to encourage good quality.
2. Product quality should full fill the customer’s needs. If the customer says it is good, then the quality is said to be better. To gain this success, the requirements should be noted clearly and deeply with all points taken to understand.
3. The production process must be designed in a certain way which will achieve quality production and services.
4. Human resource working with a project should take responsibility for performing best for the quality to be achieved from the project, every team member must understand that they must cooperate with each other. Else work will suffer.

Examples of Total Quality Management

Let’s look at the popular examples of total quality management.

1. Total Quality Management in Healthcare Organizations

Healthcare organizations are trying to increase their profits, at all levels of hospitals in our society. The importance is placed on TQM for the whole development in the healthcare system. TQM is the necessity for public and private hospital organizations to gather an increasing percentage globally. Total quality management reduces cost, create a higher level of efficiency and provide high-quality care to the patients. The customer satisfaction rate is the most important factor and in healthcare customers can be critical in many ways, to get a decent amount of profit, a healthcare organization needs to study all aspects then only both customers and organizations can get benefits with great market share.

The healthcare business is very much depending on doctors and their services, where the buyer is the patient. The system must take care of the cost of appointments, medical treatments, quality of the hospital, quality of doctors and timely services. The cost and satisfactory treatment is the key to hospital business in the long run. For best results, organizations should follow these principles.

• The patient is the priority and the organization should focus on the customer’s demand, the treatment should be the primary goal.
• A good and engaging leader is the demand and a good leader should always take care and who can keep staff involved to achieve the goal of the organization.
• Employees involvement is where each employee including doctors should feel the responsibility and get involved with the work they do, then only the organization can benefit from the business.
• The organization must keep improvement priority and regular checks and can improve nature.

2. Total Quality Management in Multinational Companies

TQM is an essential tool for MNC’s to maintain its profit parameter. MNC’s hire an excellent bunch of people to look to their graph and push to grow by applying several practices.

TQM is kept in the head, management keeps an eye to upgraded technology and acts immediately to grab benefits from it. The company is taking care of both employees and customers, the discussions are done on a broad level so that every point can be covered, and responsibility can be divided among the team. Human resource is kept in confidence, the company is open to listening to the customer about all doubts and queries, also the company takes note on what went wrong with the customer. TQM is essential to keep a record of the company’s chart whether it is growing or losing.

3. Total Quality Management in Developing Economies

TQM has been accepted globally and is implemented on a large scale to make most of the profits from projects. Companies and large organizations globally are using to grow their economies.

• TQM was introduced in Japan itself after it has been burned in world war. Managers reacted quickly to the changes they needed to make to reduce the cost, faster development times, deliverables and satisfy the customers in the competitive scenario. It was a challenge for every manager to survive because the Japanese were rebuilding their economy. Japanese are receptive to quality for reasons- Japanese traditional craftsmanship and attentional to details are not hidden. Quality was the priority during the survival years, Japan gathered food only because they exported high-quality goods at a low price. Quality kept key, which helped the Japanese to gather food and materials they needed during survival years.
• Us industries are trying to cope up with the competition in the market, the US economy is relying on imported products and technologies. To balance with their own goods US companies are using the total quality management approach where quality is the key factor.

4. Total Quality Management in the Construction Industry

Construction is a one-time process yet creative, so it is taken into account that the construction process is expensive and require lots of efforts to recreate building (or similar). TQM is used to decrease cost and increase productivity and efforts can be counted if performance is improved. In the construction industry, quality is measured by the satisfaction rate of the designer, constructor and house owners.

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