Total Quality Management: what it is and how to implement it

The pursuit of excellence in every aspect of business is more than a goal, it is a necessity. In this scenario, Total Quality Management (TQM) stands out as a revolutionary management philosophy, designed to drive companies toward sustainable success.

From its origins, marked by significant contributions from experts such as Deming and Juran, to its evolution and application across many sectors, Total Quality Management has proven to be an effective strategy for achieving customer satisfaction and operational efficiency.

So whether you are an experienced manager or someone taking the first steps in the business world, this article offers valuable, practical insights into how Total Quality Management can be the edge your company needs to stand out in the market.

Keep reading and enjoy!

What is Total Quality Management?

The essence of Total Quality Management lies in the idea that quality should not be a concern of the quality control department alone, but an integral, ongoing objective of every sector of the company. From senior management to frontline employees, every member of the organization is encouraged to contribute to the continuous improvement of processes and products.

This implies a significant cultural change, in which quality comes to be seen as everyone’s responsibility, not just that of a specific sector.

One of the main goals of Total Quality Management is customer satisfaction, achieved not only by meeting expectations but by exceeding them. To do this, TQM uses a variety of tools and techniques, such as the PDCA Cycle (Plan-Do-Check-Act), Pareto analysis, ISO 9000, Kaizen and others, which help identify and solve problems, ensuring continuous improvement of processes.

In addition, Total Quality Management emphasizes the importance of a data- and fact-based approach to decision making. This means decisions must rest on careful analysis and accurate information, instead of intuition or assumptions.

Finally, it is worth noting that, for a company to be defined as a quality company, it must earn ISO 8402:1994opens in a new tab, from the International Organization for Standardization, stating that it takes care in standardizing its production activities.

What are the seven principles of Total Quality Management?

The seven principles of Total Quality Management are fundamental to understanding and implementing this management approach in any organization. They represent the essential guidelines that steer companies in the pursuit of quality excellence.

Below, see more about the seven principles of Total Quality Management.

1- Customer focus

The first and perhaps most important principle of Total Quality Management is customer focus. This principle emphasizes that quality is determined by the customer, so understanding and meeting their needs and expectations is crucial.

Companies should therefore strive not only to satisfy but to exceed customer expectations, thereby securing their loyalty and long-term satisfaction.

In this scenario, it is necessary to use methodologies and tools, such as NPS, to identify the customer’s needs and act on them, so that the focus stays on the satisfaction of the audience.

2- Leadership

Effective leadershipopens in a new tab is essential to the success of Total Quality Management. Leaders at every level of the organization must establish a clear vision of quality and steer the organization toward achieving it.

They must create and maintain an internal environment in which people can become fully involved in achieving the organization’s objectives.

3- Engagement of people

Engaged employees are people with a high level of proactivity and dedication to the company’s success. They also strive to understand and implement the company’s practices and policies, in addition to efforts to meet customer expectations.

The engagementopens in a new tab of all members of the organization is therefore vital to make sure skills are used for the company’s benefit. When people are involved and valued, they contribute more effectively to continuous improvement.

4- Process approach

This principle of Total Quality Management recognizes that a desired result is achieved more efficiently when related activities and resources are managed as a process.

Understanding and managing interrelated processes as a system thus contributes to the organization’s effectiveness and efficiency in achieving its objectives.

This pillar seeks not only to define processes so the company acts with more discipline, but also to prevent problems, identifying them before they happen.

5- Continuous improvement

Continuous improvement should be a permanent objective of the organization. It involves the constant search for ways to improve all business processes and practices. Continuous improvement in total quality is an iterative, uninterrupted process.

Some tools are used to reach this cyclical state of improvement in Total Quality Management, such as:

#1 PDCA Cycle

The PDCA Cycleopens in a new tab (Plan-Do-Check-Act) is an iterative methodology used for the continuous improvement of processes and products. This cycle starts with planning (Plan), where the objectives and processes needed to deliver results are established.

The execution phase (Do) involves implementing the plan.

During the verification phase (Check), results are monitored and compared with the expected objectives. Finally, in the action phase (Act), corrections are made to improve processes in the next iterations of the cycle.

PDCA promotes a culture of continuous improvement, in which processes are constantly evaluated and improved.

Learn more: How to do PDCA step by stepopens in a new tab?

#2 5S Program

The 5S Program is a technique that focuses on organizing and cleaning the workplace, based on five Japanese principles: Seiri (sorting), Seiton (order), Seiso (cleaning), Seiketsu (standardization) and Shitsuke (discipline).

This methodology creates a more efficient and pleasant work environment, which contributes to continuous improvement by reducing waste, optimizing efficiency and creating an environment that fosters innovationopens in a new tab.

#3 Kaizen

Kaizen is a Japanese word that means “change for the better” or “continuous improvement.” This approach involves all of the company’s employees, from senior management to frontline workers, in the continuous pursuit of improvements in work processes, efficiency, quality and productivity.

Kaizen emphasizes small, continuous improvements that result in significant changes over time, without necessarily requiring large investments.

#4 SCRUM Methodology

Although originally developed for software project management, the SCRUMopens in a new tab methodology is an agile approach that can be applied to promote continuous improvement in many contexts.

SCRUM splits projects into short, manageable cycles, known as sprints, allowing teams to focus on delivering value incrementally and continuously. This methodology promotes adaptability, collaboration and regular feedback, all essential elements of continuous improvement.

6- Evidence-based decision making

This pillar of Total Quality Management highlights that effective decisions are based on the analysis of data and information. This principle emphasizes the importance of making informed decisions to improve quality and performance.

7- Relationship management

Finally, the seventh pillar of Total Quality Management points out that an organization and its suppliers are interdependent, and a mutually beneficial relationship increases the ability of both to create value.

Healthy relationships with stakeholders, including suppliers, can therefore lead to improvements in quality and performance.

How do you implement Total Quality Management?

Implementing Total Quality Management in a company is a process that requires commitment, strategic planningopens in a new tab and the involvement of every level of the organization.

See below a step-by-step guide to implementing Total Quality Management:

Step 1, Senior management commitment

It all starts with senior management’s commitment. Leadership must clearly understand the benefits of Total Quality Management and be committed to leading the change. This includes allocating resources, setting clear goals and communicating the importance of quality to the entire organization.

Step 2, Education and training

It is crucial to educate and train employees at every level on the principles and practices of Total Quality Management. This includes training in specific quality tools, such as PDCA, 5S, Kaizen and other relevant methodologies.

Step 3, Establishing a quality vision and objectives

Defining a clear quality vision and specific objectives is fundamental. These must be aligned with the company’s missionopens in a new tab and strategic objectives.

Step 4, Developing a culture based on the 7 principles

Total Quality Management requires a cultural change in which quality is seen as everyone’s responsibility. As dictated by the 7 principles presented earlier, this involves encouraging open communication, promoting teamwork and recognizing efforts and successes in improving quality.

It will be necessary to understand customer needs and expectations. This can be achieved through satisfaction surveys, feedback and market data analysis.

In addition, you will also need to implement a continuous improvement process, using tools such as the PDCA Cycle and Kaizen. This involves continuously identifying areas for improvement, implementing changes and evaluating the results.

Step 5, Monitoring and evaluation

Establish performance indicators to monitor the effectiveness of quality processes. This includes running internal audits, process reviews and collecting employee feedback.

In addition, you will need to keep everyone in the company informed about quality initiatives and their progress. Employee involvement and participation in quality improvement activities are crucial.

The ideal would therefore be to use a tool that not only allows tracking of indicators but also supports this 360° view of the company’s processes at every level, such as Stratwsopens in a new tab.

Step 6, Review and adjustment

Finally, it is important to highlight that implementing Total Quality Management is an ongoing process. That is, it will be important to periodically review progress and make adjustments as needed to make sure quality objectives are being met.

If they are not, running continuous improvement cycles again will be necessary, which is why Total Quality Management is about cycles.

What are the benefits for the company?

As you have probably noticed by now, using Total Quality Management generates a series of benefits for companies. Below, I highlight some of them:

1- Higher customer satisfaction

One of the central objectives of Total Quality Management is to meet and exceed customer expectations. By focusing on quality in every aspect of products or services, companies can significantly improve customer satisfaction, which leads to greater customer loyalty, repeat business and a positive reputation in the market.

2- Continuous improvement of processes

Total Quality Management promotes a culture of continuous improvement, in which processes are constantly evaluated and improved. This leads to greater operational efficiency, less waste and lower costs, and better productivity.

Tools such as PDCA and Kaizen are fundamental in this respect, helping identify inefficiencies and implement effective solutions.

3- Employee engagement and motivation

By involving all employees in the quality improvement process, Total Quality Management helps create a more engaging and motivating work environment. Employees feel more valued and an integral part of the company’s success, which can lead to greater job satisfaction and lower turnover.

4- Data-driven decision making

Total Quality Management emphasizes the importance of making decisions based on data and concrete information. This allows companies to make more informed, strategic choices, reducing risks and increasing the likelihood of success in their initiatives.

5- Better competitive positioning

Companies that implement Total Quality Management often experience a better market position. The superior quality of products or services, together with operational efficiency and customer satisfaction, puts these companies in an advantageous position over competitors.

This can lead to a larger market share and sustainable growth.

Next steps

For successful companies, having a strategic planning system that helps increase, engage and boost results, with visual resources that improve strategic deployment, is a strategic edge.

This business management system allows integrated tracking of corporate performance, monitoring and centralization of all indicators, with a focus on decision making.

Stratwsopens in a new tab, for example, is management software developed by Siteware that helps companies find continuous improvement opportunities, leverage productivity and reach great results.

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