Total Quality Management (TQM) Definition

In the 1980s, domestic manufacturing faced significant economic losses. This issue was partly due to Japanese manufacturers’ ability to produce higher-quality goods at lower costs. As a response, the TQM approach gained traction as a way to improve quality and competitiveness. Manufacturers quickly grew to understand the essential role quality plays in remaining competitive in a global marketplace.

Ford Motor Company is one example of a US manufacturer that implemented TQM principles to compete with Japanese automakers like Toyota in the 1980s and 1990s. Ford’s quality improvement initiatives centered on empowering employees to address quality issues. They implemented strict quality control measures throughout the production process and fostered a culture of continuous improvement across the organization.

• Customer focus: A proactive quality culture aims to increase customer satisfaction.

• Empowered employees: An engaged and empowered workforce is the engine that drives total quality management.

• Process approach: A systematic approach to managing and improving processes will achieve the desired outcomes.

• Integrated systems: Connecting different functions and process areas will improve overall quality across the organization.

• Strategic management: A strategic plan based on data cements quality as a top priority and guides decision-making.

• Continuous improvement: A commitment to ongoing improvement ensures quality remains a driving force in all business areas.

• Data-driven decision-making: Collecting and analyzing performance data — and accounting for risk — informs better decisions.

• Communication: Clear communication motivates employees, prevents delays, and keeps quality initiatives running smoothly.

Because quality is critical to every organization’s success, a TQM system typically aligns with and supports broader organizational objectives, including:

• Customer satisfaction: TQM efforts help companies deliver consistently high-quality products and services, leading to higher customer satisfaction and brand loyalty.

• Operational efficiency and productivity: By emphasizing process improvement, waste reduction, and automation, TQM systems streamline operations and reduce costs.

• Employee engagement: The TQM approach encourages employees to contribute ideas and solutions, which helps workers feel included and valued. 

• Better decision-making: TQM systems harness the power of data to drive decision-making, leading to more informed decisions that drive results.

Stronger competitive advantage: Total quality management creates an opportunity for businesses to build a reputation for quality and differentiate themselves in the marketplace.

Organizations might encounter obstacles while implementing TQM initiatives. Common TQM system challenges include:

• Resource constraints: Some companies may struggle to allocate the funds needed for TQM technology and training.

• Lack of Commitment: TQM initiatives require strong buy-in from company leaders. Without full commitment, implementation efforts may falter.

• Resistance to change: Leaders and frontline workers may resist the organizational and cultural changes needed to prioritize TQM.

• Communication issues: Successful implementation of TQM initiatives requires clear communication of expectations and expectations. Communication hiccups can cause delays and other problems.

• Difficulty measuring success: At the beginning of a TQM journey, it can be challenging to identify appropriate metrics for tracking progress.  

To overcome these challenges, organizations should follow TQM best practices and seek trusted partners during implementation.