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๐Ÿ’ผStrategic Cost Management Unit 14 Review

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14.2 TQM Principles and Implementation

๐Ÿ’ผStrategic Cost Management
Unit 14 Review

14.2 TQM Principles and Implementation

Written by the Fiveable Content Team โ€ข Last updated September 2025
Written by the Fiveable Content Team โ€ข Last updated September 2025
๐Ÿ’ผStrategic Cost Management
Unit & Topic Study Guides

Total Quality Management (TQM) is a holistic approach to improving quality across an organization. It focuses on customer satisfaction, continuous improvement, employee involvement, and data-driven decision-making to enhance products, services, and processes.

Implementing TQM requires a process-oriented mindset, strong leadership commitment, and collaborative supplier partnerships. The Plan-Do-Check-Act cycle provides a structured framework for putting TQM principles into practice and driving ongoing quality improvements.

TQM Principles

Core Concepts of Total Quality Management

  • Total Quality Management (TQM) encompasses a comprehensive approach to quality improvement throughout an organization
  • Customer focus prioritizes meeting and exceeding customer expectations drives all organizational decisions and processes
  • Continuous improvement involves ongoing efforts to enhance products, services, and processes incrementally over time
  • Employee involvement encourages participation from all levels of the organization in quality improvement initiatives
  • Fact-based decision making relies on data analysis and objective information to guide strategic choices and operational adjustments

Customer-Centric and Continuous Improvement Strategies

  • Customer focus includes gathering feedback through surveys, focus groups, and customer service interactions
  • Continuous improvement utilizes techniques like Kaizen (small, ongoing changes) and Six Sigma (data-driven defect reduction)
  • Employee involvement fosters a culture of quality by empowering workers to identify and solve problems (quality circles)
  • Fact-based decision making employs statistical process control charts and other analytical tools to monitor quality metrics

TQM Implementation

Foundational Elements of TQM Implementation

  • Process approach views the organization as a system of interconnected processes that must be managed holistically
  • Leadership commitment requires top management to actively champion and model TQM principles throughout the organization
  • Supplier partnerships involve collaborating closely with vendors to ensure quality inputs and streamlined supply chains
  • PDCA cycle (Plan-Do-Check-Act) provides a structured framework for implementing and continuously improving quality initiatives

Practical Application of TQM Principles

  • Process approach includes mapping and analyzing value streams to identify areas for improvement (value stream mapping)
  • Leadership commitment manifests through resource allocation, training programs, and recognition of quality achievements
  • Supplier partnerships may involve joint quality improvement projects, shared performance metrics, and long-term contracts
  • PDCA cycle application:
    • Plan: Define objectives and processes necessary to deliver results
    • Do: Implement the plan and collect data
    • Check: Study the actual results and compare against expected outcomes
    • Act: Take action based on what was learned, standardize improvements or begin the cycle again