Citation:    Business Horizons, May-June 1993 v36 n3 p66(3)

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Title:       A quick guide to Total Quality Management.

Authors:     Aggarwal, Sumer

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Subjects:    Total quality management_Technique

Reference #: A13183247

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Abstract: TQM involves improving the quality of every aspect of business.
          The steps in TQM implementation include identifying
          quality-related problems, involving all departments in the TQM
          training program and linking process design and product design.

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Full Text COPYRIGHT Foundation for the School of Business at Indiana Univer
1993

Total Quality Management (TQM) is a philosophy, an attitude of the mind,
and a journey--not a destination. It is supposed to help in winning
customer confidence and in securing long-term profitability. Customers
demand good quality, reasonable prices, and flexible delivery schedules.
TQM means building quality into everything in every area-design,
production, purchasing, vendor relations, inspection, service after sales,
market research, development, financial controls, personnel rewards,
training, and education.

A company must first improve quality; only then should it look into cost,
volume, and productivity. The improvement in price, performance, and
services follows automatically.

THE WAYS AND MEANS

In TQM, quality control concepts are used for systematic problem solving.
The analysis is based on hard data, and the focus is on identifying
problems and their solutions. We need to look for the problem constantly at
the upstream stage and think of the downstream stage as being the customer.
One must never cover up problems (this is quite a departure from current
habits). As such, TQM requires sweeping attitudinal changes.

Customer complaints and rework of products should be given to the brightest
people. If we take care of the quality, the profits follow. We need to
manage the quality of products, services, quantity, delivery, safety, cost,
and morale. Only quality goes to the customer; all the rest remains within
the company.

TQM attempts to eliminate inspections. Once the processes have been
perfected, the need for inspections disappears. To arrive at this point,
quality needs to be built in at the design stage. This is accomplished by
tending to the following issues:

* procurability;

* manufacturability;

* maintainability;

* reliability;

* durability;

* marketability; and

* competitive substitutability.

The tools we use for this are problem-solving tools, which include:

* Pareto diagrams;

* cause-and-effect diagrams;

* control charts;

* scatter diagrams;

* graphs;

* check sheets;

* relations diagrams;

* affinity diagrams;

* tree diagrams;

* matrix diagrams;

* process-decision-program charts; and

* arrow diagrams.

TQM also dictates that we use suppliers that offer the best of the
following:

* price;

* cooperation;

* quality;

* delivery;

* technology;

* management competence;

* financial resources;

* education;

* safety programs; and

* environmental controls.

ISSUES

A cooperative atmosphere at every level is required for TQM. Companies need
to use cross-functional management and break departmental barriers.
Training and education must be emphasized. Without disciplined habits,
nothing will work. With the initiation of TQM, profits may go down at
first, but then customer complaints begin to decrease, and finally costs go
down and profits surpass all expectations.

For TQM to be effective, top management must be prepared to deploy
sufficient resources aimed at training employees and reconditioning the
existing facilities. They should be willing to make changes in the
organizational structure, in planning and control procedures and systems,
and in rewards. TQM calls for both the top-down and bottom-up management
approaches side by side.

Remember that TQM is not an innovation. It can be made very effective with
innovative materials, processes, methods, machinery and facilities, and
training. It requires setting improved standards and stabilizing them.
Firms should first explain the problem, then find the factors contributing
to the problem. Next, firms should develop solutions and standardize the
new methods. This involves standardizing parts, processes, cycle times,
work sequences, and other factors. Companies must discontinue the
unrealistically higher specifications as quickly as possible. anagement
needs to mobilize all employees around satisfying customer requirements for
good quality, reasonable prices, and flexible delivery schedules. TQM
implementation requires the following seven stages:

1. Identify all the quality problems and find their solutions.

2. Establish quality assurance programs for procurement, production, and
service after sales.

3. Expand TQM to all other departments of the company.

4. Train all employees (including managers) for awareness of, and
commitment to, quality.

5. Link product design with process design to achieve the best possible
quality. This may require going through several iterations.

6. Try to reduce the overall costs of operations, while simultaneously
adding value to the products/services.

7. Use a "continual improvement program" to minimize product and process
variability.

Total quality is understood differently by different people. But top
managers must consider quality a primary and continual source of revenue.
In this brief tutorial, I have emphasized that quality cannot be achieved
through inspections. Rather, management needs to look closely at all the
issues regarding the feasibility of quality production at low cost, as well
as at the customer's needs and wants. Following that, managers can use any
of the above-mentioned tools for solving the problems, identified through
analysis of issues. The focus must always be on keeping each and every
employee involved, to the best of his or her ability, in satisfying the
customer.

References

T.E. Benson, "The Gestalt of TQM: The Concept Continues to Elude," Industry
Week, July 1, 1991, pp. 30+.

L.L. Axline, "TQM: A Look in the Mirror," Management Rev/ew, July 1991, pp.
64+.

G. Taguchi and D. Clausing, "Robust Quality," Harvard Business Review,
January-February 1990, pp. 65-72.

W.B. Gartner and M.J. Naughton, "Deming Theory of Management," Academy of
Management Review, January 1988, pp. 138-142.

J. Dreyfuss, "Victories in Quality Crusade," Fortune, October 10, 1988, pp.
80+.

D.A. Garvin, "Competing on the Eight Dimensions of Quality," Harvard
Business Review, November-December 1987, pp. 101-109.

O. Port, "The Rush for Quality," Business Week, June 8, 1987, pp. 130-144.

D. Hutchins, "Quality is Everybody's Business," Management Decisions, 24, 1
(1986): 3-6.

M. Trevor, "Quality Control: Learning from the Japanese," Long-Range
Planning, October 1986, pp. 46-53.

G.E. Oversmith, "Developing Employee Ownership of the Quality Improvement
Process," Proceedings of the 31st Annual APICS International (Las Vegas,
Nevada), October 1988, pp. 267+.

Sumer Aggarwal is a professor of operations management at the University of
Massachusetts, Boston.

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