Total Quality Management a Literature Review free essay sample

An employee, through being continuously engaged is in an ideal position to make an active contribution to continuous improvement. (Roberts, 1993) 2. The development of Total Quality Management At the conclusion of World War II American business enjoyed a dominant position within the global market. Industry within the U. S. A. was at its pinnacle while other nations were beginning the long and arduous journey to economic and industrial recovery. During this period American companies shifted their focus from yield and quality to other factors such as finance, marketing and restructuring the organisation. Petersen, 1999) Demand for consumer products had intensified. This was attributed to the scant availability of such items during the years of the war. Order books were full, and quality was of little importance while there were orders to fill. (Rayworth, 1993). It was at this time during the American occupation that Deming arrived in Japan. During this time he became acquainted with me mbers of the Union of Japanese Scientists and Engineers. We will write a custom essay sample on Total Quality Management a Literature Review or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In 1950 Deming was invited to speak at the Industry club by the president of the Federation of Economic Organisations, Ichiro Ishikawa. Leitner, 1999). As a result of his speech Deming was invited to present a series of lectures advocating his management theories. During the first such lecture Deming told his audience that if they followed his ideas they would be able to compete with other nations within 5 years. What appeared to be a simple message was music to the ears of forlorn and vanquished Japanese. One industry leader who had attended the lecture heeded Deming’s advice and within a few months saw his companies productivity rise by 30 per cent. Similar results were also noticed amongst other companies. Less than 12 months after Deming’s initial speech the Japanese created the eminent Deming prize. This award remains the highest form of recognition that a Japanese company can obtain. In 1954 Juran arrived in Japan and began to teach his own ideas on quality. Along with Feigenbaum, who published his book ‘Total Quality Control’ The quality movement was beginning to gain momentum. (McKenna, 1995) But it wasn’t until 1980 when the NBC produced a documentary titled, If Japan Can, Why Can’t We? – did the quality movement really take off. Osborn, 1990) Forms of quality management emerged during the 80’s in many manufacturing and service-sector companies, followed in the 90’s by public and welfare based organisations. (Tuckman, 1994). Today there are many awards associated with quality. The most recognised of these being the US Malcolm Baldrige National Quality Award, the European Quality Award, the Japanese Deming Prize, the Canadian Quality Award and the Australian Quality Award. Together these awards represent a large proportion of global production of goods and services and account for over 70% of Gross national product across the planet. (Stading Vokurka, 2003). . Defining Total Quality Management There are many and varied thoughts about how to define TQM. Dellana Hauser (1999) identify an absence of consistency among studies on quality when attempting to define TQM. Boaden (1997) discusses the difficulty of trying to define TQM but acknowledges the importance in attempting to do so because TQM as a subject is now being taught in learning institutions. Patel (1993) agrees and cites definitions created by various authors before contending that TQM is a process that recognises that quality should be the primary focus, and the mission statement of the company should reflect this. TQM enables organisations to obtain a high degree of differentiation and to reduce costs. In an article contained within the TQM magazine, Popplewell and Aghaie (1997) cite the British Standards Institute definition. â€Å"A management philosophy embracing all activities through which the needs and expectations of the customer, the community and the objectives of the organisation are satisfied in the most efficient and cost effective way by maximising the potential of all employees in a continuing drive for improvement†. TQM is assumed to have been derived as a means of advancing Feigenbaum’s notion of total quality control (TQC). Feigenbaum views TQC as an efficient method ensuring quality in areas of development and maintenance. Improvement is combined to promote positive economic performance while still offering satisfaction to the customer. TQM pushes that envelope to include both the design of the product and its delivery to the client while incorporating other philosophies such as empowerment and teamwork. (McAndrew Ehigie, 2005) 4. Benefits of Total Quality Management Khan (2003) cites improvements in productivity, revenue, market-share and profits by companies that adopted TQM practices. These companies included; 3M, Motorola, Xerox, Solectron and Granite Rock Inc. In a survey given to 770 companies Mann Kehoe (1994) published results that further quantified positive results of TQM implementation. Areas of improvement included supplier relationship, process, policy deployment and customer relationship. Chiu, Chang Chen (2010) state by using TQM within the Human Resource context it leads to increased loyalty and satisfaction amongst its employees. Moreover, improved business performance is not limited by the scale of the organisation. This hints at the flexibility and durability of TQM. (Emery Barker, 2006). Competitive advantage can be gained and a company’s competitive capability can be enhanced when implementing an effective TQM process. (Zaim, Demirbag , Tekinkus Tatoglu, 1996). 5. Problems with Total Quality Management We have already considered the difficulty in attempting to define TQM, but what other issues are there to face when considering TQM? Numerous studies have shown that less than half of companies who have attempted to adopt a TQM approach have enjoyed any form of success. (Loomis, 1998). The picture painted by Gatchalian (1997) is even bleaker. She reports that the success rate of companies implicating TQM is as low as 20-35 per cent. The main reasons for failure were uncertain implementation processes, waning enthusiasm for the concept, deficient levels of empowerment on all levels, ineffective communication strategies through lack of planning and newly formed teams failing to act in a co-ordinated fashion. Noronha (2003) cites failure can be linked to a culture clash where TQM processes imported from other countries do not marry well with local society. He offers China as a prime example. Although all of these reasons are contributing factors in the potential shortcomings of successful TQM implementation, the overwhelming theme discovered through research points to the role that senior management plays in the failure of TQM. Senior managers have been found to be ignorant, pragmatic, apathetic and scared of embracing and implementing TQM throughout the organisation. (Gatchalian, 2007; Moghaddam Moballeghi, 2008; Chiu, 1999; Cooper Phillips, 1995). 6. 6Keys to successfully implementing an effective TQM strategy While acknowledging what factors can lead to the failure of TQM practices Gatchalian (1997) points to ingredients for success such as information sharing, effective communication process, education and involving everybody within the organisation. Rad (2006) places the emphasis on the senior manager stating that they are required to ensure compliance to TQM principles and values in all parts of their organisation. These include organisational structure, education, communication, process, procedure and compensation strategies. While Holder Walker (1993) argue that middle managers hold the key through understanding the importance of employee empowerment, strategic planning, performance measuring and displaying an empathy for the requirements of the customer. Employing measurement against performance factors is important to ensure continuous improvement and provide the opportunity to re-evaluate should the need arise. (Oakland, 2004, p. 446). Motwani (2001) lists Senior Management commitment, workforce empowerment and training, performance measuring, process management and customer satisfaction as five aligned factors that contribute to successful implementation. Gaining official accreditation through ISO 9000 is also seen as a method of implementing a successful TQM strategy. (Meegan, 1997; Najmi Kehoe, 2000) But what is ISO 9000? They are a collection of inclusive standards devised by an international group of specialised professionals to guarantee conformity in service and product by providing certification of the processes utilised to produce them. (Oslund Staff Writer, 1993) These standards define what the quality system should be and the levels that an organisation must aspire to in order to assure the client of a satisfying product. Bhuian, 1998) However Hansen et al (2004) warn these standards provide a guide on what to do but not how to do them and conclude by stating that ISO 9000 guides towards assurance which does not automatically translate to improved performance. Gotzamani Tsiotras (2002) apply a more sinister reason for companies striving for accreditation. They argue that accredited companies will declare that their motive in achieving certification is to satisfy their customers and improve quality. However the true reasons are more likely linked to competitors’ accreditation, supplier demands and customer expectations. While there appears to be much conjecture on how to successfully implement TQM into the workplace, there are common themes. A need for total commitment to TQM from senior management, effective process management, effective communication and employee empowerment and education are all viewed as essential components of a successful TQM strategy. It is somewhat ironic that despite the mountain of literature produced and research available, the preceding factors listed as dependant on success are four of the core values (Kruger, 2001) contained within Deming’s 14 point approach. Future Research 7. Conclusion 8. Reference list: