Tqm_Is_Regarded_as_a_Quickfix_Solution

"We have learned to live in a world of mistakes and defective products as if they were necessary to life. It is time to adopt a new philosophy in America.", Edward Deming   “Total Quality Management is regarded as a quick fix solution by many organisations. This has led many companies to start on the road to total quality improvement initiative but failed to achieve success due to several factors.” With reference to the above statement, discuss the importance for both management and the employee to establish quality improvement processes and the potential side effects of the TQM initiative. We are living in an era where organisations are facing fierce competition due to globalisation and liberalisation. In order to survive organisations must create the competitive advantage over their competitors. Many companies are trying very hard not only to satisfy their customer’s needs but where possible exceed them. This can only be achieved through cost reduction, improvement in product performance, increased customer satisfaction and a constant effort towards world class organisations. In order for companies to survive and grow in the future, it is essential that they deliver high quality goods and services. Those that can deliver quality are the ones that will prosper in the next century (Ross, 1994). Consider the following statements: “Ford Motor company had operating losses of $3.3 billion between 1980 to 1982.” “Xerox market share dropped from 93% in 1971 to 40% in 1981.” The fundamental cause was that attention was not given to quality. Consider this example in the business sector: Penril DataComm is a producer of data communications and equipment. Before embarking on TQM, defect rates were so high that the company was reworking or scrapping one third of everything it made. Applying TQM techniques resulted in an 81% decrease in defects, an 83% decrease in failures in the first three months of use, and a 73% decrease in first year warranty repairs. TQM was credited with taking the company "from the brink of financial disaster" to excellent financial health. The term “quick fix” according to Oxford dictionary is “solution to a problem especially an easy or temporary one.” From the above statements it would be tempting to say that any company which is not performing well should adopt TQM. Since the 1980’s the new buzzword in the business, manufacturing or education environment is TQM. For many companies the term TQM is associated with corporate programmes aimed at implementing employee teams and statistical process control. Unfortunately many companies were dissatisfied with the perceived results of these programmes concluding that TQM does not work. Companies actually compete on three major issues; Quality, Price and Delivery. If the choice is to compete in the market place on the basis of product or service price, then the one providing the lowest price wins. However, these companies are also vulnerable to any competitor who can offer value at a lower price. This is why many companies have become aware of the need to make quality the competitive marketing strategy in a global market. For the past three decades many large companies for instance, have started to implement total quality initiative in their products and services. It is said that quality is defined only in terms of agent. Where the employee may have one definition of quality the employer may have a totally different definition to this word. It is said quality is in the eyes of the beholder. The table below shows how the quality gurus perceive quality   Crosby Conformance to requirements Deming Customer orientation / satisfaction /delight Ishikawa Thought revolution in management Juran Fitness for purpose or use Taguchi Loss imparted to a society from the time a product is shipped Quality of a product or service is the ability to satisfy the needs and expectations of the customer. It includes the following features: 1) Conformance to customer specifications, 2) conformance to legal or statuary requirements, 3) Meeting or exceeding the anticipated wishes of the customer, and 4) Something better than your competitors. The official ISO 8402 definition of quality is: "The totality of characteristics and an entity that bear on its ability to satisfy stated or implied needs." Quality is not only products and services but also includes processes, environment, and people. At its simplest quality is the product of Performance and Expectations TQM defined Total - made up of the whole Quality - degree of excellence a product or service provides Management - act, art or manner of planning, controlling, directing etc…   Thus, TQM is defined as (Besterfield, 2003) “…the art of managing the whole to achieve excellence.” Considering this we can easily see that Total Quality Management can be extremely subjective in its implementation, monitoring, and success or failure. Meaning of TQM TQM means that the organisation’s culture is defined by and supports the constant attainment of customer satisfaction through an integrated system tools, techniques and training. This involves the continuous improvement of organisational processes, resulting in high quality products and services. The goal of TQM is “ Doing the right things right at the first time, every time.” At its simplest TQM is all managers leading and facilitating all contributors in everyones’s two main objectives: • Total client satisfaction through quality products and services • Continuous improvement to processes, system, people, suppliers, partners, products and services In 1920’s Walter Shewhart came up with the management ideology. At this time none of the United States corporations where willing to test his ideas as they felt they where doing fine. Traditional view of quality was that quality cannot be improved without significant losses in productivity. In the 1950’s Edward Deming refined Shewhart’s ideas of TQM and got a chance in Japan to try these approaches to management. As Japan began moving in and taking over areas that had be predominately controlled by the U.S. , only then did these companies sit up and take notice to this system called TQM and wonder what it was and why it was working for the Japanese. In the 1980's a flood of U.S. organizations started trying to implement TQM. The TQM view of quality was that Improved quality leads to improved productivity.   The Basic Concepts of TQM •A committed and involved management to provide long-term top-to-bottom organizational support. •An unwavering focus on the customer, both internally and externally. •Effective involvement and utilization of the entire work force. •Continuous improvement of the business and production process. •Treating suppliers as partners. •Establish performance measures for the processes. Principles of TQM Constancy of purpose: short range and long range objectives aligned Identify the customer(s); Customer orientation Identification of internal and external customers Continuous improvement Workflow as customer transactions Empower front-line worker as leader Quality is everybody’s business For a service industry, some elements of quality are: - empathy - trust; i.e. expertise, integrity, courtesy - responsiveness - tangible product attractiveness (curb appeal) - reliability, on time, no interruptions   ASPECTS OF TQM: Counting, Customer, Culture COUNTING These are Tools, Techniques and Training in their use for analysing, understanding and solving quality problems. The formal approach to Quality Improvement is the analysis of performance and systematic efforts to improve it. There are numerous models used. Some commonly discussed include: • FADE In order to reduce inpatient violence and costs in a forensic psychiatric hospital in California, TQM FADE method (focus, analyze, develop, and execute) was used to address the problem. One year after implementation of the recommendations, aggressive incidents in the dining rooms were reduced by 40 percent, assaults using silverware were eliminated, and a total of 70 nursing staff hours a day were saved by eliminating silverware control procedures in the dining rooms. • PDCA For business improvement opportunities, dynamic growth and profitability, “plan,” “do,” “check” and “act” (PDCA) is a leading option. PDCA was developed by Walter A. Shewhart in 1920’s and W. Edwards Deming modified the PDCA cycle to PDSA (plan, do, study and act) in 1980’s. Nowadays, PDCA has become a fundamental tenet of quality management. All the emphasis on process thinking is based on the PDCA   • Six Sigma (DMAIC) DMAIC is an acronym for five interconnected phases: * Define the project goals and deliverables for both internal and external customers * Measure the process to determine current performance * Analyze and determine the root cause(s) of the defects * Improve the process by eliminating defects * Control future process performance The Six Sigma DMAIC process methodology is a system that brings measurable and significant improvement to existing processes that are falling below specifications. The DMAIC methodology can be used when a product or process is in existence in a company but is not meeting customer specification or is otherwise not performing adequately. • CQI: Continuous Quality Improvement The main objective of CQI is that although mistakes may be committed by people but most of them are caused by by faulty sytems and processes. This means that • The root cause of such mistakes can be identified and eliminated by asking each time the “WHY” in each step • TQM permeates in the totality of the organisation from high level strategic planning and decision making to the detailed execution of work elements on the floor • There are three ways mistakes can be prevented o Mistake proofing – preventing mistakes from occurring o Inspection at source – where it is impossible to prevent mistakes early detection is imperative o Stop it in time – stop the production until process can be corrected. CUSTOMER The focus is on Quality for customer as a driving force and central concern CULTURE Shared values and beliefs, expressed by leaders that define and support quality   REASONS FOR ESTABLISHING QUALITY IMPROVEMENT PROCESSES EMPLOYEE MANAGEMENT • JOB SECURITY Provides opportunity for personal growth and development • INCREASED PROFIT The image of the company is enhanced • CAREER PROSPECT Increases Innovation and thinking • BETTER CORPORATE IMAGE Increase in number of job demands Decrease in intention to leave the organisation • MOTIVATION Encourages decision making at the most appropriate level • REDUCE COST AT ALL LEVELS This leads to reduction in wastage and the customer pays less for the commodity • BETTER CONDITIONS OF WORK Increases Motivation and acceptance of new ideas • BETTER CUSTOMER CARE The customer focus is enhanced and customers are motivated to deal with the company JOB SATISFACTION Job satisfaction is increased • SAFETY OF WORKERS AT THE PLACE OF WORK Better control in handling company’s equipment thus reducing potential mishaps in the work environment INVOLVEMENT IN DECISION MAKING Teamwork is promoted COMPETENCIES ENHANCED THROUGH TRAINING Provide appropriate training leading to employees satisfaction, competency and skills of employees. DEVELOP MUTUAL RESPECT AMONG EMPLOYEES, MANAGEMENT AND OTHER STAKE HOLDERS. Communication flows easily between management and workers MAINTAIN DISCIPLINE AT THE PLACE OF WORK EMPLOYEES USE THEIR KNOWLEGDE AND SKILLS FOR WELL INFORMED DECISIONS. Increase quality, standard, service and quality of product RECOGNITION AND ACKNOWLEDGEMENT OF WORK ADVANTAGES OF TQM FROM THE MANAGEMENT PERSPECTIVES: • TQM provides an invaluable problem solving tool. • TQM dispels negative attitudes. • Management becomes more aware of individuals/ employees at work environment. • Employees gain a sense of belongingness thereby increasing participation at all levels. • Efficiency and effectiveness are increased at all levels in the organisations. • It helps to reduce turn over rate, lateness, absenteism, errors, rejects and reworks. • It improves communication throughout the organisations • Develops overall company awareness. • Builds loyalty to company unity • Reveals training requirements in all departments thanks to GAP ANALYSIS. • Rearranges priorities which were previously overlooked • Helps to assess the current culture, customer satisfaction and gaps in the organisation. POTENTIAL SIDE EFFECTS OF TQM On the negative side, because of the narrow focus on empowerment and simplification processes relative to TQM, workers are left uncertain about a number of personal issues, especially in the whirlwind of change, which accompanies implementation of TQM TQM has become such a strong influence on the social information forces that it has shaped worker attitudes, satisfaction, and future behavior. It is becoming apparent that TQM creates ethical issues because of some of its side effects. Some possible side effects are that TQM may not always improve job satisfaction, effect necessary changes, provide individuals with certainty about their work, and assist them in obtaining personal goals. Although some authors like O’Reilly and Caldwell (1979) are very positive toward TQM, it is imperative that TQM instruction address the possibility of these side effects. According to Harari (1993a, 1993b) potential side effects of TQM principles brings potential problems in real world applications. There are some eleven ways which elaborate on the above mentioned : 1) Focuses on internal processes rather than on external result; 2) Focus on minimum standard; 3) Develops its own ponderous bureaucracy; 4) In addition, total quality philosophy involves a comprehensive transformation Delegates quality to quality Czars rather than to real people; 5) Does not require radical organisational reform; 6) Does not demand changes in management compensation; 7) Does not demand entirely now relationship with outside partners; 8) Applies to faddism, egotism, and quick-fixism; 9) Drains entrepreneurship and innovation from the organisation cultures; 10) Has no place for emotion and soul, but mechanical approach; 11) Tries a one-size-fits all solution. TQM is a structured system. When all of its elements are implemented properly, TQM is like a well-built house. It's solid, strong, and cohesive. If TQM is not planned for and implemented correctly, it will be structurally weak and will probably fail. TQM focuses people's attention on internal processes rather than on external results. An asset of TQM is that it gets managers to attend to internal processes, But taken to an extreme manager can get too preoccupied with internal issues such as the controversial issue of the performance evaluation and measurement, and thereby, ignoring the shifting perceptions and preferences of customers. TQM focuses on minimum standards. Zero defects and no rework efficiency distract people from adding value and excitement to customers' lives. TQM develops its own cumbersome bureaucracy. Organizational charts and reporting systems with interlocking committees, councils, and improvement teams imply a linear and predictable improvement process, rather than the chaotic and disruptive rebuilding that is often necessary. TQM delegates quality to quality czars and 'experts' rather than to 'real' people. Quality should not be delegated, but lived in the strategy of the company and roles of the managers. TQM does not demand radical organizational reforms. Real quality improvement requires structural change and liberation of people from stifling control systems and the tyranny of functionalism which precludes teamwork. TQM does not demand changes in management compensation. If rewarded on short-term financial gains, managers will not be likely to attend to quality measures. TQM does not demand entirely new relationships with outside partners. This deficiency results from above conditions. Managers will fail to enact nonlegelistic relationships based on trust and mutual support. TQM appeals to faddish, egotism, and quick fixism. Although they will not admit it , many managers have applied for awards, like the Baldrige, for reasons of personal aggrandizement and corporate public relations, or for quick and painless profitability. In reality, quality requires a never ending pursuit of improvement. TQM draws entrepreneur ship and innovation from corporate culture. Too much emphasis on standardization and routine precludes the constant changes and shifting needed to keep up with external changes. TQM has no place for love. Though this comment seems to be a bit precious, it means that the analytical, detached, and sterile programs put in place to ensure qualities are often devoid of the human emotion and soul that inspire attachment to the company by employees and to the products by customers. According to Kotter (1995), the success of TQM depends largely on management’s ability to lead the organization’s quality transformation. He identified eight common management errors to explain why transformation efforts fail which are listed below: 1) not establishing a sense of urgency; 2) not creating a powerful enough guiding coalition; 3) lacking a vision; 4) not communicating the vision; 5) not empowering others to act on the vision; 6) not planning for short-term wins; 7) not consolidating improvements and producing more change; and 8) not institutionalizing new approaches.   DIFFERENCES IN THE IMPLEMENTATION OF TQM IN LARGE ORGANIZATIONS AND SMALL AND MEDIUM ORGANIZATIONS For many years, the large companies seem to have dominated the discussion concerning total quality management and continuous improvement processes. Small and Medium-Sized (SMEs) firms have all been left out. Ghobadian and Gallear (1995) made a list of differences that exists between large and small medium sized enterprise. Briefly, the differences exist in structure, policy-making procedures and utilization of resources to the extent that the application of large business concept may not fit in directly to SMEs. LARGE ORGANISATIONS SMALL & MEDIUM ORGANIZATIONS  Hierarchical with several layers of management Flat with very few layers of management  Strong departmental/ functional mindset Absence of departmental/ functional mindset  Mostly bureaucratic mostly organic  Top management a long distance away from Top management close to point of delivery point of delivery  Top management visibility limited Top management highly visible  High incidence of unionisation Low incidence of unionisation  Training and staff development are more likely Training and staff development are more likely to to be planned and large scaled be adhoc and small scale  Rigid corporate culture dominating operations Operations and behavior of employees are and behaviors influenced by owners/ managers’ ethos and outlook Conclusion It could be said TQM in true form is not for all. Each company may have different needs and uses of TQM. Managers are the one who can bring new ideas to improve perceptions of success. Implementation plans need to be carefully developed, and a TQM program should be customized relative to the type of firm, industry conditions, maturity of the firm, and general readiness for change. Moreover, expectations need to be managed. This can be done by being realistic about what can be achieved with certain TQM concepts and methods, and benchmarking other organizations in similar settings to estimate what type of quality improvement rates can be reasonably expected.The assumptions that TQM give is that it always improves job satisfaction, effects necessary changes, provides individuals with certainty about their work, and assists them in obtaining personal goals which depends on personally-relevant information.As the editor of Quality Digest put it, “TQM isn’t dead. TQM failure just proves that bad management is still alive and kicking” (cited in Evans and Lindsay, 2001).  Bibliography Deming, W.E. (1986). Out of the Crisis. Cambridge, MA: MIT-CAES Evans and Linsday, Process Management,2001 Ghobadian, A & Gallear, DN (1995), Total Quality Management in SMEs, Int Journal of. Management Science, Vol. 24, No.1, pp 83-106 Kotter, J. P. 1995. Leading change: Why transformation efforts fail. Harvard Business Review (March-April): 59-66. Praveen Gupta, The four P's of process management lead to quality success , Quality Digest 2005 Ross, J.E. (1994) Total Quality Management: Text and Cases Readings, 2nd Edition, Kogan Page, London http://patientsafetyed.duhs.duke.edu/module_a/module_overview.html http://deming.eng.clemson.edu/pub/tutorials/ http://www.mapnp.org/library/quality/tqm/tqm.htm http://ps.psychiatryonline.org/cgi/content/abstract/47/7/751