Page 9 - DMGT524_TOTAL_QUALITY_MANAGEMENT

Total Quality Management

Notes In response to this, a similar model was developed by the European Foundation of Quality
Management in 1992. This EFQM Excellence Model is the framework for the European
Quality Award.
7. Business Excellence: TQM models are often called Business Excellence Models. Also, TQM
itself is now often called Business Excellence. This is to distinguish the “new TQM” from
the past work on TQM.
Business Excellence is really the same as TQM, but with a more clearly defined approach.

Caselet Total Quality Management

otal quality management (TQM) is the idea that controlling quality is not something
that is left exclusively to the “quality controller”, a person who stands at the end of
Ta production line checking final output. It is (or it should be) something that
permeates an organization from the moment its raw materials arrive to the moment its
finished products leave.
TQM is a process-oriented system built on the belief that quality is a matter of conforming
to a customer’s requirements. These requirements can be measured, and deviations from
them can then be prevented by means of process improvements or redesigns.
The European Foundation for Quality Management (EFQM) said that TQM strategies are
characterized by the following:

The excellence of all managerial, operational and administrative processes.
A culture of continuous improvement in all aspects of the business.
An understanding that quality improvement results in cost advantages and better
profit potential.
The creation of more intensive relationships with customers and suppliers.
The involvement of all personnel.
Market-oriented organizational practices.
Total quality management was developed by a number of Japanese firms in the 1950s and
1960s. But it was built largely on the teachings of W. Edwards Deming and Joseph Juran,
two Americans who had quietly developed the principles in the aftermath of the second
world war. With the help of books and articles such as David Garvin’s 1983 description in
Harvard Business Review of the way in which TQM and other techniques were putting
Japanese companies streets ahead of their foreign competitors, the idea was later reclaimed
by the United States and widely adopted by American business.
Europe, which has at times looked left out of this game of American-Japanese ping-pong,
has also made occasional claims to be the fount of total quality. Raymond Levy, chairman
of Renault, a French car company, said in the early 1990s:
“Quality is representative of a culture which we Europeans have no reason to let others
monopolize. The Europe of Descartes; the Europe of the Age of Reason and the
Enlightenment; the Europe of the industrial and technological revolution of the last two
centuries holds within itself all the elements of method and exactitude conveyed by the
term total quality.”
Contd...

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