What Is Total Quality Management

Total Quality Management seeks at the complete quality measures accepted by a company appending controlling quality development and design, quality improvement and maintenance, quality assurance, and quality control.

Total Quality Management is based on different principles. Some of the key principles are discussed here.

  • The first key principle of the total quality management talks about executive management in which the top management must act as the main leader or a driver for total quality management and should create surroundings that ensures its success.
  • The second principle talks on training, which says that the employees should acquire regular training on concepts of quality and the methods involved in it.
  • The third principle covers customer focus where improvements in quality are done to improve customer satisfaction.
  • The fourth principle is all about decision making. In this quality decisions must be taken on the basis of measurements.
  • The fifth principle talks on tools and methodology in which appropriate methodology and tools are used to ensure non-conformances are measured responded and identified.
  • The sixth principle involves continuous improvement where companies must work consistently towards quality and manufacturing procedures.
  • The seventh principle covers company culture in which company should target at development of the employees ability to improvise the quality.
  • The eighth and the last principle includes employee involvement where employees are encouraged enough to be active in resolving quality related issues.

Many companies think that the cost of introducing Total Quality Management is far better than the benefits it will generate. The cost of the total quality management system is categorized into four ways. Prevention costs are affiliated with implementation, maintenance and design of the total quality management system. Prevention costs are incurred and planned before the exact operation. These include product requirements, which involve specifications for processes and incoming materials. Secondly, these include quality planning and quality assurance where production of plans for quality and maintenance of the system takes place. In addition, prevention cost also covers the development and preparation of the processes.

Appraisal cost is affiliated with the customer’s evaluation of purchased materials and vendors to ensure they are within specification. Appraisal costs include verification, quality audit and vendor evaluation. It covers the inspection and checking of the system whether it is functioning correctly or not. Failure cost is divided into external and internal failure. Internal failure cost appears when results fail to target quality standards and are identified before they are shipped to the customer. These include waste, scrap, rework and failure analysis cost. External failure cost appears when the services or product fail to target quality standards, but are not identified until customer receives the product. These include repairs, complaints, warranty claims and returns cost.