What Is TQM Anyway?

Answers to Some Frequently Asked Questions...

by Susan Bellows

Total Quality Management (TQM) is one of those phrases business people have been hearing about lately, but may not know what it means. The following is a summary of frequently-asked questions about TQM.

Q. I keep hearing about TQM. What is it?

A. TQM -- Total Quality Management -- is a different way of doing business that focuses on continuous improvement of everything, by everyone, all of the time. Remember when "Made in Japan" meant junk and "Made in America" set the standard for quality? Japan turned around its quality through TQM. But TQM isn't a band-aid, quick-fix "program." It took Japan years to transform its way of doing business and make continuous improvement a way of life.

Q. How would an organization implement Total Quality Management?

A. TQM isn't a program, a technique, or a fad. Fundamentally, it represents a cultural change process that starts at the top. It involves a major commitment from senior management to:

• Assess the organization's culture and be willing to make changes, if necessary.
  
  
• Use tools to measure, identify, and prevent problems.
  
  
• Train and empower all employees.
  
  
• Build relationships with employees, suppliers, and customers based on trust and teamwork.

This is an ongoing, dynamic process that takes time, patience, and a very strong desire to improve virtually everything at every level. But, the benefits are well worth the effort.

Q. What are the benefits of TQM?

A. The General Accounting Office (GAO), in its study of companies operating in a TQM environment, found that typical benefits included:

• improved productivity
• reduced costs
• improved moral
• reduced turnover
• enhanced customer satisfaction
• increased customer retention
• improved profits

. . . all because the organization is focusing its efforts on doing the right thing right . . . the first time.

Q. Isn't TQM just for large manufacturing firms? What about TQM in a small or medium-sized service organization?

A. TQM can benefit any size organization and any industry. Interestingly, it's actually easier for a smaller organization to initiate and sustain TQM because there is less bureaucracy. Consequently, there are fewer layers of resistance. Plus, decisions from the top often flow more smoothly and quickly in a smaller organization. In addition, smaller organizations are typically closer to and in a better position to listen to their customers.

Q. What else do I need to know?

A. Traditionally, American businesses have sought quick, "band-aid" approaches to their problems. In the long run, these quick-fix approaches have been less effective and more expensive than TQM. TQM focuses on steady, continuous, lasting improvement. So, if you're serious about the long-term health of your organization, you owe it to yourself to learn more about TQM.

Q. Anything else?

A. Time and time again the TQM continuous improvement process has been proven to provide quicker, less expensive, and more effective solution to problems than more people, more equipment, or more money could buy.