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TQM as a management
strategy for the next millennia
TQM as a
management
strategy
Satish Mehra
Joyce M. Hoffman
855
Danilo Sirias
Introduction
It was in the 1980s that the quality revolution got a serious look by companies
attempting to increase profitability. At the time, no one questioned the results
that were supposedly achievable by using quality techniques. Alternatively, no
one dared to ask why are we using the quality systems as planned. All quality
improvement efforts were supposed to end in good results and nothing was
expected to go wrong. Very little was discussed about the differences between
quality assurance, quality management, total quality etc., etc. As time
progressed, quality revolution made some businesses happy while others were
quite disillusioned. In management meetings, finger pointing took over from
the common rationale of business analysis. So, finally, began the phase of
analyzing quality improvement efforts.
Managing total quality, in recent years, has taken a different meaning as is
evident by numerous articles published on the subject of total quality
management (TQM). What is TQM and how does it differ from the quality
management practices of the past? These remain key questions in various
arenas. Some find the two approaches similar while many others see them
differently. In general, TQM is looked on as a process-oriented philosophy of
enhancing customer satisfaction through the production of higher quality
goods and services. Quality management practices of the past, however, are
regarded as ``after the fact'' control techniques to detect defective items that
require reworking. Hence, past practices focused on quality control rather than
quality management. Past practices were result-oriented compared to today's
process-oriented philosophy.
TQM can also be viewed as an organization-wide philosophy requiring all
employees at every level of an organization to focus his/her efforts to help
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improve each business activity of the organization. The job of improving and
ensuring quality is no longer solely the responsibility of certain people or for
departments of the organization. It is the responsibility of everyone. The people
in the organization are required to make quality a culture in their daily lives.
Furthermore, it is also important to understand that TQM is a long-term
perpetual improvement process requiring significant resources, both financial
and human. It is a dynamic process not a static one. It is a continuous effort
with no deadlines or target dates. The process can never be considered
complete since there is no goal or destination. Hence, TQM becomes a way of
life.
TQM of tomorrow presents a different scenario. Market dynamics are
changing on a continuous basis. New global markets are presenting newer
challenges that change constantly, causing stressful competitive
environments. Various authors have suggested a new role of TQM
philosophy for businesses operating in the next century. Suazo (1998)
proposes TQM as a holistics approach to managing organizations. Forrest
(1998) has suggested that TQM concepts be applied to implement
sustainable developments that provide competitiveness. Wong (1996) also
alluded to the future of TQM by questioning its role for the twenty-first
century.
Research objectives and goals
This paper examines the future role of TQM and its implications for
managerial thinking processes in coming years. It will be a two-step process. In
the first phase, we will analyze what has been written by many authors as to
what is TQM and how to implement TQM. This phase will require researching
the literature to document, and synthesize, the views of others regarding TQM.
Second, through a panel of experts (from the practising world), we will attempt
a refinement of findings of the previous phase, and furthermore, establish a
path of future trends in the TQM arena. Finally, we will report on the views of
the expert panel as to the future use of TQM ideals.
TQM and its implementation aspects
Much has been written about TQM. The quality literature mainly consists
of case studies and analyses of specific aspects of the TQM system. With
few exceptions (Benson, 1992; Saraph et al., 1989), no systematic attempt
has been made to define the critical elements of TQM implementation. In
order to evaluate the critical elements of TQM implementation, we
conducted a literature review. A preliminary list of elements, identified by
authors, who have written directly about TQM implementation or a TQM
system, was developed. The literature review suggested that there are at
least 45 elements that affect TQM implementation. These elements and their
sources (listed in the Appendix) are presented in Table I.
TQM as a
management
strategy
857
Table I.
Proposed elements of
TQM implementation
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9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
Table I.
(1993), Harari, O. (1993), Higginson, T. and Waxler, R. (1994), Johnston, C. and Daniel, M.
(1991), Juran, J. (1993), Juran, J. (1993), Kano, N. (1993), Luther, D. (1992), Mohr-Jackson, I.
(1994), Niven, D. (1993), Rieley, J. (1992), Schonberger, R. (1992), Schonberger, R. (1992),
Showalter, M. and Mulholland, J. (1992), Sparks, R. and Legault, R. (1993), Takeuchi, H.
and Quelch, J. (1983) Weintraub, D. (1993), Westbrook, J. (1993).
Human resources
Cole, R. (1994)
Management style
Grant, R., Shani, R. and Krishnan, R. (1994), Lakhe, R.R. and Mohanty, R.R. (1984),
Leibman, M. (1992).
Organizational structure
Bounds, G. and Hebert, F. (1993), Schonberger, R. (1992), Shani, A., Grant, R., Krishnan, R.
and Thompson, E. (1992).
Ownership
Hankes, J. (1993), Harari, O. (1993), Juran, J. (1993), Saraph, J., Benson, G. and Schroeder,
R. (1989), Sowards, D. (1992).
Continuous improvement process
Becker, S. (1993), Cole, R. (1993), Kano, N. (1993), Mathews, J. and Katel, P. (1992),
Melcher, A., Acar, W., DuMont, P. and Khouja, M. (1990), Rieley, J. (1992), Walton, M.
(1991), Weintraub, D. (1993), Westbrook, J. (1993).
Consultants
Sowards, D. (1992).
Business culture
Benson, P., Saraph, J. and Schroeder, R. (1991), Black, S. and Porter, L.J. (1996),
Blackburn, R. and Rosen, B. (1993), Edosomwan, J. and Savage-Moore, W. (1991), Emery,
C. and Summers T. (1994), Fuchs, E. (1994), Hammond, J. (1991), Higginson, T. and
Waxler, R. (1994), Holmes, E. (1993), Leibman, M. (1992), Niven, D. (1993), Shuster, D.
(1994), Westbrook, J. (1993).
Process-oriented
Akers, J. (1991), Becker, S. (1993), Benson, T. (1992), Bowles, J. (1992), Deming, E. (198182), Easton, G. (1993), Fuchs, E. (1994), Godfrey, B. (1994), Greenwood, F. (1992), Hankes,
J. (1993), Main, J. (1984), Mohr-Jackson, I. (1994), Rieley, J. (1992), Saraph, J., Benson, G.
and Schroeder, R. (1989), Walton, M. (1991).
Statistical tools
Ahire, S. (1996), Benson, T. (1992), Deming, E. (1981-82), Garvin, D. (1993), Hankes, J.
(1993), Kano, N. (1993), Main, J. (1984), Saraph, J., Benson, G. and Schroeder, R. (1989),
Schonberger, R. (1992), Walton, M. (1991).
Quality audit
Easton, G. (1993), Juran, J. (1993), Juran, J. (1993), Rieley, J. (1992).
Empowerment
Ahire, S. (1996), Akers, J. (1991), Aubrey, C. II (1993), Becker, S. Golomski, W. and Lory,
D. (1994), Benson, T. (1992), Fuchs, E. (1994), Leibman, M. (1992), Mohr-Jackson, I. (1994),
Moran, J. (1991), Port, O. (1992), Saraph, J., Benson, G. and Schroeder, R. (1989),
Schonberger, R. (1992), Showalter, M. and Mulholland, J. (1992).
Quality planning
Black, S. and Porter, L.J. (1996), Deming, E. (1981-82), Edosomwan, J. and Savage-Moore,
W. (1991), Godfrey, B. (1994), Mohr-Jackson, I. (1994), Saraph, J., Benson, G. and
Schroeder, R. (1989), Weintraub, D. (1993), Younger, S. (1993).
Quality data
Ahire, S. (1996), Juran, J. (1993), Niven, D. (1993).
(Continued)
TQM as a
management
strategy
859
Table I.
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860
Table I.
elements that relate people and their reward system. This factor recognizes the
need for developing a good workforce that is well trained and properly
rewarded. Let us look into each element grouped into this factor.
Due to the complexity of the problems companies now face, ``teams'' have
become a necessity, rather than a choice. The nature of the problems today
require a multidisciplinary approach, and teams represent a viable alternative
to deal with such a complex environment. There are various forms of teams
such as quality circles, multi-functional, and self-directed teams. These types of
teams differ on the level of power and involvement that the members have in
the different aspects of their jobs. Companies must be careful when selecting
the type of teams to adopt. Self-directed teams, for example, require heavy
preparation and should not be adopted by ``novices'' (Port, 1992). Also, the
reward system should be team-based. This suggests, as an immediate result,
the need to switch the incentive systems from individual- to group-oriented.
TQM as a
management
strategy
861
Table II.
Hierarchical structure
of TQM elements
within factors
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The hypothesis of the use of ``group incentive systems'' under a TQM system
was tested by Becker et al. (1994). They found that there is a trend to change
from an individual-based system before TQM to a group-based incentive
system after adopting TQM principles.
``Training'' is the next element within this factor. This is not a surprise
because TQM demands that people change working practices. For example,
working in ``teams'' requires skills such as problem-solving, human
relations, mathematics, statistics, writing and oral expression. Acquiring
these skills usually requires heavy training. Since training is usually very
expensive, focus should be placed on the immediate needs. Weintraub
(1993) suggests using a just-in-time (JIT) approach to training. Also,
businesses are well advised to develop training materials/manuals that
assist in the enhancement of ``process knowledge'' of an employee (Deming,
1981-82).
``Total employee involvement'' is vital for successful TQM
implementation. Quality has different dimensions such as design,
production, sale, delivery, after-the-sale, safety and security, and perceived
quality (Sparks and Legault, 1993). Total employee involvement is
necessary to ensure excellence for all quality dimensions. In other words,
quality must become the responsibility of everyone in the organization in
order to succeed in the marketplace.
Next on the list are ``empowerment and ownership''. Employees'
empowerment has many advantages. First, the need for supervisors is reduced,
which results in lower costs (Becker et al., 1994). Also, empowerment gives a
sense of ``ownership'' which is also a critical element found in the literature.
When employees are empowered, there is a sense that ``everyone owns his/her
piece of the business [which] unleashes the talent and energy of our people''
(Ackers, 1991, p. 27).
Another element cited was ``reward systems tied to key measures.''
Examples showed that employees act according to how they are measured
and rewarded regardless of the effect their actions have on the overall
performance of the firm. Cases have been found where people acted
completely against companies' strategic priorities just because of a poorly
designed reward system. As a result, reward systems must be designed so
that they promote behaviors that contribute to firms' wellbeing.
The final element within this factor is ``recognition.'' Being recognized by
peers greatly motivates people to improve their processes and become more
effective. Deployment of success stories can be done through newspapers and
fliers. Also, tools such as videos and visual displays can be used to recognize
and celebrate work well done. The results of these promotional activities are
two-fold:
(1) They increase the level of motivation among workers.
(2) They can be used as a training device to deploy solutions that have been
proven to work (the learning organization concept (Garvin, 1993)).
Human resource could not excel in any business without good management
structure, which we discuss next.
2. Management structure
Organizations should have a management structure that acts as a facilitator
for TQM deployment. Here, we group those elements that create and foster
quality vision. Hence, top management involvement becomes a necessity.
Top management occupies a special place in a TQM implementation. Top
management provides both the physical and leadership needs of the
organization, and most organizational changes and training needs require
top management approval. In addition, top management behavior signals
all employees as to the importance of TQM implementation. Hence, ``top
management involvement'' is a critical element of TQM implementation
and this was validated by our literature review. Top management
involvement is more a matter of coaching and facilitating the work rather
than directing it.
Deployment of ``key information to all employees'' is the next critical element
within this factor. Employees need to have vital information in order to make
good decisions. Several papers mentioned that unsuccessful TQM
implementations showed lack of focus in the different activities of teams that
employees embarked upon. Having the right information coupled with an
adequate reward system is part of the solution. Leadership plays a vital role in
communicating such information.
``Leadership'', which is another way to express top management
involvement, is an important element. Some of the activities top management
can participate in are ``speeches, meeting with employees, meeting with
customers, giving formal and informal recognition, receiving training, and
training others'' (Easton, 1993, p. 35).
Business culture is also mentioned in the literature as a critical element of
TQM implementation. Culture is defined as ``the holistic summation of
individual community members' habitual attitudes and behaviors'' (Shuster,
1994, p. 9). Culture can be analyzed from the point of view of different
countries' abilities to adopt TQM practices (Benson et al., 1991; Hammond,
1991; Holmes, 1993). Also, business culture can be an indicator of the
readiness of a firm to adopt a TQM philosophy (Emery and Summers, 1994).
Because failures in TQM implementation are usually attributed to
resistance to change, cultural change theory is becoming an important
discipline for research (Emery and Summers, 1994).
Since companies have an infinite number of processes and problems to be
solved, it is vital to have a ``mechanism to set priorities.'' As mentioned
earlier, some companies try to improve everything that can be improved and
the result is lack of focus. Shiba et al. (1993) recommend following a chain of
cause and effect relationships. If the problem leads you to any of the five
``evils'' (defects, mistakes, delays, waste, accidents), the problem should be
TQM as a
management
strategy
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``Deming wheel,'' also known as the PDCA (plan, do, check, act) cycle
(Deming, 1991).
The last important element is ``customer-oriented product development.''
After knowing the TQM philosophy, it is common sense that new product
development should focus on customer needs. Some of the tools mentioned in
the literature that deal with the design process are quality function deployment
(QFD) and simultaneous engineering. Furthermore, continuous improvement of
a product must have its basis in customer orientation through feedback from
consumer channels. An improved product without customer preference(s) is not
improved at all.
TQM a reality check
In order to check on the current reality of TQM implementation, we took
the theoretical findings from the previous phase to the real world. Our objective
was to assess the managerial perceptions of the quality revolution of the future.
Our experiment was designed around senior manufacturing executives
(director level or above) of large manufacturing businesses
that included chemical, cosmetics, medical equipment, automobile, computer
equipment,
major
household
appliances,
and
aircraft
parts.
We believe that these manufacturing leaders offer two strong attributes.
One, they are pace-setters by virtue of their financial standing and
market size. Two, they are forward thinkers due to their global
competitive environment. All information was collected through
detailed one-to-one interviews and discussions with manufacturing executives.
First, we gathered general information about each business's quality efforts
and plans for the future. Second, we presented them with the findings of
our investigation regarding TQM implementation. Finally, management
views were solicited on the future of TQM. It took in all a total of three
visits (per business) to complete our data gathering efforts. Comprehensive
findings of the study were shared with all participants to arrive at
consensus regarding the future of TQM, and these findings are discussed
next.
Critical element validation
The expert panel, in near unanimity, confirmed the findings of our research
relative to the critical elements of TQM use and implementation. It was pointed
out that one cannot assign any priority to any of the elements within the factors
or to the factors themselves. We were advised that a lot depends on the
business, its products, and its markets. This is not a surprising detail given
that our research base to identify the critical elements was the writing of
numerous authors from varied environments over a wide time horizon. All
participants agreed that the recent state of TQM implementation is well
represented in our findings. However, the future could be a different story.
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TQM of tomorrow
In our quest to envision the future of TQM, we explored the managerial
thinking process in reference to incoming quality challenges and associated
improvements. Our findings led us to conclude that the organizational
emphasis of tomorrow will be shifting towards four main areas (called focuses
here) for the improvement of quality. These focus areas are:
(1) customer focus;
(2) process focus;
(3) innovation focus;
(4) environmental focus.
1. Customer focus
.
Customer partnership
Feedback
Loyalty
Enhancing satisfaction
.
Reliable supplier
2. Process focus
.
Self-assessment
Human capabilities
Technological capabilities
Financial capabilities
.
Supplier partnership
.
Critical success factor perspective
.
Information flow perspective
.
Performance measure perspective
TQM as a
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3. Innovation focus
.
Perpetual growth
.
Knowledge-creating worker
Knowledge-creating organization
Knowledge-creating leadership
4. Environmental focus
.
Government regulations
.
Market dynamics
Table III.
TQM: future focus
areas
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Innovation/improvement/knowledge focus
Without fast paced responsiveness to changing customer demands
will definitely cause the demise of a business in the coming years of the
new millennia. This sentiment was expressed over and over again by
the participants of this study. Efficient consumer response,
successfully practised by the food and grocery industry, now comes
to the door steps of manufacturers. The service component of their
business takes on a different meaning, with after-sale service just a fading
word.
To provide for customer satisfaction, businesses will have to plan
perpetual growth processes based upon innovation, improvements,
and knowledge creation. These efforts will require technological
leadership in management ranks of all trading partners. These partners
will become knowledge-creating organizations having synchronized
knowledge workers moving in the same direction. Hence, the flow of
information and timing of managerial actions will become critical in the
quality decisions.
Environmental focus
The last missing puzzle in our quest for total quality organization of tomorrow
revealed another focal point of attention, i.e. environmental focus. This is a
three-dimensional focus comprising government regulations, social/ethical
issues, and market dynamics.
Government regulations will stay a mystery in years to come due to
the changing patterns of public opinions. The same will be true of social
and ethical issues. However, such uncertainties will have to be dealt
with through early partnerships between governmental organizations
(e.g. FDA, EPA, etc.) and businesses. Such cooperative alliances
will provide timely and correct information to all trading partners,
and hence, affect the market dynamics through competition. It is in
this respect that the continuous improvement process component of
TQM will take on a new role. This role will be innovation-based,
attempting to discover new knowledge (e.g. new technology to produce
user friendly products of higher quality). Creating knowledge on a
routine basis will replace the current mode of working that focuses on
just doing the job.
Summary and conclusion
The new operating environment of the future will provide a set of
challenges on various levels. A clear focus on defining and managing the
customer side, process emphasis, and creating knowledge through
innovation will comprise the new business environment. Under this new
environment, TQM systems will shift towards a philosophy of quality based
strategic management systems. In this new paradigm, this research predicts
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TQM as a
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