Total Quality Management


Total Quality Management(TQM) is an organisational process that actively
involves every function and every employee in satisfying customers needs, both
internal and external. TQM works by continuously improving all aspect of work
through structured control, improvement and planning activities that are carried
out in concern with guiding ideology that focuses on Quality and Customer
Satisfaction as the top priorities.
There has been many arguments that TQM succeeds only by incorporating a
concern about quality for the customers throughout the organisation. The truth
of this statement and those facts that disagree with this statement will be look
into and discuss in more detail to achieve the success of TQM.
TQM recognises that the Customer is at the center of every activity. The
customer may be external or internal. The key is to determine the gap between
what the customer needs and what the system delivers. Once the gap is
recognised, it would be systematically reduced and results in never-ending
improvement in customer satisfaction at every level.
TQM depends on and creates a culture in an organisation which involves
everybody in quality improvement. Everyone in the company can affect quality but
must first realise this factor and have the techniques and tools which are
appropriate for improving quality. Thus TQM includes the marketing and
dissemination of quality and methods not only within the organisation and
customers but also to suppliers and other partners.
The general view to achieve success in TQM could be summarised as below:

Quality as strength
Quality in all processes
The importance of management
The involvement, commitment and responsibility of everybody
Continuous improvement
Zero defects
Focus on prevention rather than inspection
Meeting the needs of target customers
Recovery
Benchmarking

A prerequisite for successful quality improvement is first, to understand how
quality is perceived and valued by customers.

4 ‘Q\'

Design Quality Technical Quality
Production Quality
Delivery Quality
Functional Quality
Relational Quality


Image
Experiences
Expectation


Customer Perceived Quality
=
Customer Satisfaction

Figure 1: Gronroos - Gummesson Quality Model (1987)

Gronroos and Gummesson has combined their ‘Customer Perceived Quality\'
model and the 4 “Q” model to stress the importance of customer. The intergrated
model focuses solely for the organisation to achieve customer satisfaction
through improving the quality for the customers.
Morup (1992) notes that “quality is the most important and effective factor
a company can use in the battle for customers.” To be competitive, we must
satisfy the customers. In order to be more competitive, we must delight the
customers. Quality is here defined as the measure of customer delightment.
Kaizen provides the philosophy and driving force for designing the quality.
If quality is made the global driving force, then customers will obtain the best
value possible and use the product. The concern about quality will optimise the
value for customers.
The TQM perspective involves not only quality in relations with external
customers but also quality in the internal service chains and in relation to
suppliers and other partners.
This “Quality Chain” involves everyone in the process and applied
throughout the organisation.
Customer orientation and quality are not just a matter of ensuring that the
contents of the product or services satisfies the customer needs. The manner in
which the service is delivered and the customers\' relations with the company
must also meet the customer\'s expectation.

Sales

Customer Satisfaction

Quality Improvement


As the above graph indicates the sales increases directly with an increase
in customer satisfaction. Customers are satisfied with improvement in quality.
The more quality improves, the faster sales will increase because customer
satisfaction carries its own acceleration. When the quality reputation grows,
marketing can emphasize increasing customer satisfaction as a major element in
advertising and the other promotions.
As Deming wrote in his book “Out of the Crisis," it will not suffice to
have customers that are merely satisfied. An unhappy customer will switch.
Unfortunately a satisfied customer may also switch, on the theory that he could
not lose much and might gain. Profit in business comes from repeat customers,
customers that can boast about your product and service, and that bring friends
with them. He further stated that we should stay ahead of the customers. This
could be achieved through constant quality improvement and innovations.

Why Do Companies Lose Customers:

Death of Customer 1%
Customer Moving Residence 3%
Lower Price Elsewhere 5%
Unsatisfactory Handling of Complaints 14%
Suppliers\' Lack of Interest 68%


As shown in the above graph above TQM\'s success includes the incorporation
on quality of the after sales service and follow up. The quality needed in
maintaining a customer will be less as compare to gaining a new customer. TQM
success