Total Quality Management Literature Review

* Total quality management (TQM): This model is concerned with the performance of all processes in an organisation, and the products and services that are the outcomes of those processes. It seeks continuous improvement and will involve everyone in the quest for quality.

Berry, L. L. (2000). Cultivating service brand equity. Journal of the Academy of Marketing Science, 28(1), 128-137. Retrieved from http://link.springer.com/article/10.1177/0092070300281012

First, it is essential to decompose the concept “Total Quality Management” to clearly understand its goal: “Total” goes for the fact that quality involves everyone and all activities in the company, “Quality” means conformance to Requirements “ Meeting Customer Requirements” and “Management” because Quality can and must be managed. 2 The TQM model is based on the hypothesis that a company’s survival is only possible if a competitive level is achieved and maintained for each of the so called «6 dimensions of quality»: • • • • • • Product & service quality On-time delivery Fair price Employees satisfaction Product & process safety Environment conservation.

TQM is a way of life for a company. It has to be introduced and led by top management. This is a key point. Attempts to implement TQM often fail because top management doesn't lead and get committed - instead it delegates and pays lip service. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company, and in creating and deploying well defined systems, methods and performance measures for achieving those goals. These systems and methods guide all quality activities and encourage participation by all employees. The development and use of performance indicators is linked, directly or indirectly, to customer requirements and satisfaction,

TQM encourages a strategic approach to management at the operational level through involving multiple departments in systematic innovation and cross-functional improvements. It allows companies enable managing operations as cross-functional process which gives an advantage to develop and fit an orientation toward inter-company collaboration and strategic alliances through establishment of culture collaboration among different departments. It also helps a company able to work well for services and manufacturing sectors then provides a high profits through improving efficiency (Yoshiki Kurata,

Total Quality Management (TQM) is an improvement tool that is widely used in many companies. It consists of many aspects including Managing people as well as business processes in order to maintain customer satisfaction. With TQM, Businesses starts to do the right thing from the start and to ensure zero error. Therefore, it is important to learn the principle of TQM and how it acts in organizations with its advantages and disadvantages.

The fact that globalization has expanded the market for organizations means that TQM is more important than ever before. Customer demands are higher and if a company does not create products and services that meet their expectations they can easily access the same or similar products and services from another company. If managers do not implement TQM into their company procedure then they will fail to meet the high standards of customers all over the world and eventually lose their business. When it comes to implementing TQM, it’s the mangers responsibility to create an environment where people can work together to improve their work processes. If the ownership or senior management does not buy into this concept you will never succeed. Many people in leadership roles are either too set in their ways or closed minded to the necessary change needed to really improve the way things get done. You have to buy into the concept that there is always a better way to do something. By tapping into all the knowledge and experience your employees possess, you develop solutions that not only improve your execution, you provide everyone with a sense of accomplishment.. These "process improvement teams" give employees a chance to help steer the future direction

are possible Using TQM as a new way to manage. Such companies also found that

As Deming wrote in his book "Out of the Crisis," it will not suffice to

Total quality management, also known as TQM, which is an umbrella methodology drawing on knowledge of the principles and practices of the behavioral sciences, the analysis of quantitative and non-quantitative data, economic theories, and process analysis to continually improve the quality of all processes. Three major contributors to the quality profession include: Walter A. Shewhart, W. Edwards Demings, and Joseph M. Juran, who taught the concepts of controlling the quality and managerial breakthrough. There are several common connections between the three contributors to the quality profession.

Total Quality Management (TQM) is focus on the quality of the products or services. TQM expands beyond statistical process control to embrace a wider scope of management activities of how we manage people and organizations by focusing on the entire process, not just simple measurements. TQM philosophy is a “continuous improvement” approach to doing business through a new management model.

"TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer

The 90s mark the starting point of empirical research on critical factors in TQM, although different studies have yielded different sets of TQM factors (Saraph et al., 1989; Flynn et al., 1994; Powell, 1995; Ahire et al., 1996; Black and Porter, 1996; Zhang et al., 2000; Antony et al., 2002). As a result, there is no single measurement instrument to evaluate TQM implementation. Furthermore, evidence concerning the impact of TQM on business performance is also based on a wide range of indicators that differ across studies and are in some cases contradictory, especially regarding financial performance, which is measured in terms of ROA –return on assets- or ROI –return on investment. Some research has found a positive effect of TQM on the latter (Easton and Jarrell, 1998; Hendricks and Singhal, 2001a, b); whereas other research reports a negative incidence of TQM on these measures (Chapman et al., 1997). In some cases, TQM’s effect on these financial outcomes is even deemed inexistent (Adam, 1994; Powell, 1995; York and Miree, 2004). Improper implication of total quality management will hinder the improvement in customer satisfaction, quality of product or service rendered, employee performance, quality of work life, market share and competitive

BusinessDictionary.com defines Total Quality Management (TQM) as a holistic approach to long-term success that views continuous improvement in all aspects of an organization as a process and not as a short-term goal. It aims to radically transform the organization through progressive changes in the attitudes, practices, structures, and systems. Total quality management transcends the product quality approach, involves everyone in the organization, and encompasses its every function: administration, communications, distribution, manufacturing, marketing, planning, training, etc. (BusinessDictionary.com, n.d.).

The name ‘Federal Express’ is synonymous with quality. It is recognized that the Federal Express Company a world leader in transportation area and information field. Federal Express can deliver packages overnight to almost anywhere in the world. Simultaneously, people can track packages at any time so that they can know where their goods are. (Neff & Citrin, 2001) As the good quality and services Federal Express provided, people like it, trust it and make it universally. Thus, a distinctive quality is vital to every organization at present if you want to have bigger market share in the world. However, how could people achieve it?