Total Quality Management; bringing forth the change required to obtain competitive advantage

Total feeling Management bringing forth the convince undeniable to obtain competitive advantageThe world economy has sustainne rapid changes during the past two decades with the advent of global competition to an extent that almost each keep company (large or sm wholly) is touch by it in around styles. As creativity and innovation be necessary for bringing forth the change filmd to obtain competitive advantage, tint is the most powerful factor a company stack use in the battle for customers/clients. To be competitive, the customers must be satisfied and to satisfy customers we must focus on smell. Total fibre Management (TQM) provides the philosophy and driving force for designing type in barf up to delight the customers by counsel on surmount value of a companys products or services.The above summation concord with Zikmund (1994), who opined that Total Quality Management is a job philosophy that embodies the belief that worry process must focus on integrating the idea of Customer drives fibre through knocked out(p) an organization.It is in telephone circuit with the above that this chapter will discuss An overview of Total Quality Management Basic principles and concepts of Total Quality Management Tools and techniques of Total Quality Management Total Quality Management as a telephone line strategy and performance Review and evaluation of TQM on organisational performance and productivityThis is however to manipulate that oversight, scholars, researchers and others fully comprehend TQM principles, tools, techniques and methodology as a way of contributing to gauge alterment process and enhancing corporate performance and productivity.Therefore, the objective of Total Quality Management entrust is to remediate the corporate performance of organization.2.1 OVERVIEW OF TOTAL QUALITY MANAGEMENT2.1.1What is Total Quality Management?Total Quality Management is an Ameri nookie perception of managing woodland. Since TQM deals with character reference, it seems clear that the first step to state of wards understanding the meaning of the phrase would require an understanding of the word select. The word which means different thing to different people, is often employ to describe skillfuls and services. Although, Quality as a concept is subjective, but in general, it can be defined as a measure of the degree to which a particular product satisfies customers expectations with respect to certain tangible and intangible features of the product. However, Robert Kotler (1994), view a products spirit as the ability to perform its functions. It holds the products over completely durability, reliability, precision, ease of effect and repairs and other valued attributes. Although some of these attributes can be measured objectively from marketing demo of view, but type should be measured in footing of buyers perception. Sullivan (1986), showed evidence on this issue when he defined seven stages of quality in J apan in order of increasing level of quality to include product oriented, process oriented, systems oriented, humanistic, society, cost oriented, and quality function deployment (QFD). Deming (1986), saw quality as aiming at the need of the customers (present and future). Juran sees quality as fitness for purpose succession Crosby (1979), saw quality primarily as conformance to requirements.Rao, et.al (1996) withal approached the scope on quality when they cited Garvin (1988) as the first to categorize the numerous definitions on quality existing in the literature in an effort to create a common understanding. Five approaches were identified to defining quality the transcendent, product-based, user-based, manufacturing-based, and value-based approach.a. The transcendent approach is typified by Barbara Tuchmans (1980), definition a condition of purity implying fine quality as distinct from poor quality. Quality is achieving or reaching for the graduate(prenominal)est standard as against existence satisfied with the sloppy or fraudulent. Examples of fine quality that get this definition are present in fine arts and literature. However, these items may not guard quality to everyone and its lack of objectivity also create problem for companies in business environment who are striving for quality.b. The product-based approach identifies features or attributes that can be measured to indicate higher quality. This approach provides objective measures of quality compared to the first.c. The user-based approach determines the quality of the goods. The product or service that best satisfies the user is the higher quality product. This approach equates customers satisfaction with quality.d. The manufacturing-based approach was described by Crosby (1979), as conformance to requirements.e. The value-based approach introduces the element of price. Broh (1982), provided one expression of this approach Quality is the degree of excellence at an acceptable price and go of variability at an acceptable cost.Unfortunately, like as said earlier, most of these definitions are subjective. Although the manufacturing-base and product-based approaches are objective, quality has to be defined by the organisation concerned. Having come to term that quality is a necessary pre-requisite for any company operating in todays highly competitive business environment, it is consequently implied that as quality varies from one company to another, it also dependent on their cathexis, policy, and other elements that guide the company in the realisation of its corporate goals. It is in that locationfore common that in the manufacturing sector, quality in both product and service is a compelling competitive differentiator, while for service business, quality is everything- necessityly, it is the product.From an institutional point of view, Total Quality Management is maintaining an environment in which all employees are empowered to participate as a team in determini ng, measuring, and improving quality of a company. It includes the use of facts and data to implement a worry philosophy with the overall aim of increasing customers satisfaction, profitability, and job satisfaction.It is from this perspective that Akpeiyi (1995), defined TQM as a business strategy for ensuring that organization delivers quality goods and services to both its external and internal customers so that the organization can perpetually remain in a profitably rewarding business.Besterfields, et.al (1995) on the other hand, defines TQM as both a philosophy and a set of guiding principles that represent the foundation of a unvaryingly improving organization.According to Arene (1995), TQM stands for customer satisfaction at the abjectest cost involving all the people in the organization. She further stated that the three key elements of TQM (Customer satisfaction, low cost, people involvement and empowerment) call for a amount of money cultural change in leadership and management style, values for effectiveness and deficiency. Quality gibe to her stands for the highest standards and the best of the best.Speaking in the same vein, Juran (1995) said that following World War II, the Japanese embarked on a course of reaching national goals by trade in rather than by military means. And that the major(ip) manufacturers who had been involved extensively in military production were faced with converting to civilian production but a major obstacle to selling their products in the international markets was a national reputation for shoddy goods created by export of poor quality goods prior to world war II. He then went on to say that to solve this problem, the Japanese undertook to learn how other countries achieve high quality. To this end, the Japanese carried out in-depth research and study from which they devised some unprecedented strategies for creating a revolutionary pace. The Japanese experience confirms the fact that giving the growth competi tion in world, a competition which not lone(prenominal) put one country against another and ultimately one race against another, it is only those organizations or countries and races that can compete on the quality of their products and services will survive.Carlos Cordon (1996) postulated that a fundamental basis of TQM is a culture for countinuous cleansement. He pointed out that extenders are the experts because they have the detailed knowledge of how the work is done and they are the best to improve the process. Cordon further noted that while top management should endorse and initiate the change, it is at the bottom of the organization that the responsibility for improving process lays. Under this philosophy, work is done in teams. These teams are responsible for the individual operations and also improving the process. He argued further that the role of the supervisors and managers changes in which they become the team coaches, qualification sure that the team has the reso urces needed to fulfill their mission. Cordon maintained that to implement this TQM cultural change, a company should train its workers to equip them with tools for process proceeds and typically, such readying includes techniques about effective team work, problem solving, process analysis, project management, statistical tools etc. Once trained in the use of these tools, the teams generate ideas for forward motion and thereby implement the ideas. With this spirit, mistakes are considered as opportunities for improvement and the objectives is to obtain improvement is a continuous process.It is noteworthy to point out that education in TQM is a continuous process for all employees and not an on-off investment for a year, because if this on-off approach is adopted, then the TQM training will be seen as a schedule not as a process.Festus Iyayi (1994), also informatively noted that TQM is both a routine and philosophy of excellence in an organizational means for providing product s and services that have good qualities to a high degree. According to him, as a route to excellence, TQM is a conscious, formalized and systematic process of seeking, achieving a sustaining improvement in the quality of all activities, structures and processes for the purpose of satisfying the organizations customers which in turn improves the overall performance of the organization.Miller (1994), also did an exploration on TQM and found out that only those companies that apply the techniques of TQM can survive the competition in future. Such companies according to Miller, will increase greatly in competitiveness and performance due to the effect of TQM.From the foregoing definitions, TQM can be described as the most important management methodology available today to achieve and maintain a competitive edge against planetary competition. It can be tailored for a particular environment and there are many ways for execution, which will be discussed later. Due to high and growing te nsion, which leads to feelings of blame, mistrust, lack of common vision of the future, coupled with low morale, many organizations are gradually turning to TQM.It is therefore essential at this point to identify the star sages in TQM in order to understand its principles and concepts to be discussed later.2.1.2 The Deming PhilosophyDr. W. Edwards Deming was the first American to introduce quality principles to the Japanese on a large scale. He is credited with providing the foundation of the Japanese quality and resurgence as an economic power. Over the years, Deming condensed his philosophy into 14 points, which became action items for top management to adopt. He also outlines seven deadly diseases that can prevent the winning introduction of TQM. Below are the 14 points he developed as a theory for management for improvement of quality, productivity and competitive position Create constancy of purpose toward improvement of product and service. Learn the new philosophy Cease d ependence on inspection of the product to achieve quality. But require statistical evidence of process control along with incoming critical parts. Buy materials only if the provider has a quality process. End the practice of awarding business on the basis of the price tag alone. Use statistical methods to find troubleshoots and constantly improve the system. Institute modern aids to training on the job Institute modern methods of supervision. Drive out fear Break down barriers between departments consume numeral goals Review work standards to account for quality Remove barriers that rob people of their pride of workmanship Institute a vigorous program for training people in new skills Create a structure in top management that will push the above 13 points every day.2.1.3 JuranJuran is regarded as one of the prime architects of the quality revolution in Japan. After graduating as an engineer, in 1924 he joined the Western Electric Hawthorne Works where he was appoint to the inspect ion function. In 1951 he published the Quality Control Handbook, which later became a seminal work in the area. He arrived in Japan 4 years after Deming. He founded the Juran Institute in 1979. Juran expresses his approach to quality in the form of the Quality Trilogy. Managing for quality, he stated, involved three basic processes Quality planning. Quality control Quality improvement2.1.4 CrosbyIn 1965 Crosby joined ITT as a corporate vice president of quality, the first one in the fall in States. In 1979 he launched a consulting practice focused on quality. Crosby described quality as free and argued that zero defects were a desirable and achievable goal. He defined quality as conformance to requirements. Accordingly, a Pinto meeting the requirements for a Pinto were a quality product just as much as was a Cadillac conforming to Cadillac requirements. Recognising that improving quality by increasing the level of inspection would raise costs, he insisted that the way to achieve z ero defects was to improve prevention techniques. ossification costs include appraisal and prevention costs. The traditional view, as expressed by Juran, is that the cost of appraisal must increase if quality is to increase. Crosbys contribution was that, by improving prevention approaches, the cost would decline since the inherent quality-appraisal trade-off curve would move in the direction shown.He articulated his view of quality as the four absolutes of quality management Quality means conformance to requirements. Requirements needed to be distinctly specified so that everyone knew what was expected of them Quality comes from prevention. And prevention was a result of training, discipline, example, leadership, and more. Quality performance standard is zero defects. Errors should not be tolerated. Quality measurement is the price of nonconformance.In order to improve quality, Crosby proposed a 14-point program Demonstrate management commitment by being convinced that quality im provement is needed and subscribing to a written quality policy. This policy should specify all the way that each person be expected to perform exactly as specified or cause the specifications to be changes to match the needs of the company or the customer. Form quality improvement teams. These should be cross -functional and include department heads to oversee the quality improvement process. The team of department heads should be responsible for promoting quality through the entire company. Establish measurements for quality in all activities. Although many of these measures could be error rates, he also included some others. As examples, he suggested that accounting could use the percentage of late reports plant engineering could use time lost because of equipment failures. Evaluate the cost of quality and use it to identify where quality improvements could be profitably made. Raise the awareness of quality through the organization. Get employees involved by making them aware of costs. Take corrective action to improve quality in areas identified in the previous steps. Plan for zero defects. Using members of the quality improvement team, plan a zero defects program that fits the company and its culture. Train all employees to carry out their part of the quality improvement program. Hold a Zero Defects Day to signal to all employees that the company has naturalised a new performance standard. Encourage people to set goals for themselves and their groups. These goals should be specific and measurable, and progress should be measured against them. Remove obstacles that prevent employees from achieving these goals by load-bearing(a) them to report these obstacles to management Provide recognition for those who participate. This should be public and non-financial Establish quality councils consisting of team chairpersons and quality professionals. They should meet regularly, share experiences, and generate ideas. Do it all over again to stress that quality im provement is a continuous process.2.1.5 FeigenbaumArmand Feigenbaum joined General Electric in Schenectady, New York, in 1944. While working on the jet engines he found that statistical techniques helped him improve their performance, and, as a result, GE put him in charge of its quality programs. Later, at MIT he developed the concepts of Total Quality Control. In 1968 he founded his own consulting company, General Systems. Throughout his career he promoted the concept of Total Quality Control.Feigenbaum defines total quality as an excellence-driven rather than a defect-driven concept. In his view quality is defined by the customer, and in this regard he is similar to Juran. He also feels that the quality philosophy extends beyond the factory floor to include all of the functions in an organisation. This is similar to Crosbys view of a broader scope for TQM. In order to persuade management to adopt a quality strategy, he also used the Cost-of -Quality approach. 2.1.6 IshikawaKaoru Ishikawa graduated from the University of Tokyo in 1939 with a degree in applied chemistry. His life was wholly committed to the promotion of Total Quality through Japan. Ishikawa believed that all divisions and all employees in the organization should be involved in studying and promoting quality control by learning seven statistical tools. He created one of these tools, the cause-and-effect diagram, which is also known as the Ishikawa diagram. Ishikawas second concept was that of the customer as primary in defining quality. He defined the customer as the next person in the line, the person who gets your work or anybody who relies on you.2.1.6 TaguchiGenichi Taguchi formerly an employee of Nippon Telephone and cable has had significant influence on the quality movement in Japan. His prime focus was in making statistics practical. For this endeavor he won the Deming Prize in 1960, and since then he has won the prize again on three separate occasions. His ideas are promoted in the United States through the American Supplier Institute. Taguchi viewed quality as an issue for the entire company and focused on the use of statistical methods to improve quality, particularly in the area of product design. Two of his concepts are particularly significant The loss function Design characteristics and noiseAlthough Deming, Juran and Crosby are the most head-known TQM gurus in the United States, it could be argued that Feignenbaum, Ishikama, Taguchi have been as important as they in defining the scope of TQM. In broad terms, they all agree with each other. Accordingly, they all agreed that TQM seeks to improve productivity, and it does so by focusing on satisfying the customer and by involving employees in the process. TQM they further agreed, has the practical goal of improving the bottom line and at the same time meridian employee morale.2.2 BASIC PRINCIPLES AND CONCEPTS OF TQMWith such strong evidence that TQM integrates fundamental management techniques, existin g improvement efforts, and technical tools under a disciplined approach, it is there important to sidle up some of its underlying basic principles and concepts.The principles of TQM are a set of commonsense beliefs that determine the individuals action in everyday life not just at work. According to Colin Burns, (1995) experience has shown over and over again that for TQM culture to be entrenched in any organization, the individual in that organization must undergo personal change. This is because the ability of an organization to imbibe in TQM culture is considerably enhanced when the individuals within such organizations first believe in and apply with displeasure the principles of TQM in their lives and interactions with people. He further maintained that the innovative principles that have been known to transform the individual inside-out and provide the glue for holding together the entire TQM process include* Personal vision* Personal leadership* Personal management* Interp ersonal leadership* Emphatic communication* Creative co-operation* Balanced egotism renewalHe opined further that without observing and applying the above principles of good management in our individual lives, methods and techniques of TQM alone would rarely produce good quality products and services. The bottom-line according to him is that quality and excellence can only be built on a foundation of sound management principles.Aluko, et.al (1997) states that each TQM is a preposterous opening move that acts as a framework for morality in business. According to them, TQM consider the efforts of those directly involved, both inside and outside the organization. It is no coincidence therefore that successful TQM models all tends to embody concepts of integrity, honesty, commitment, participation and ownership. Indeed, they value and respect the contributions from each individual as the driving force within TQM organization. Although the principles of TQM may differ from one say-so to another, they were able to summarize sixteen principles of TQM that should guide management as given by Choppins (1995) to include the followingHighest priorityTotal quality must overtly be the highest priority of the organization / company / individual..Quality definitionAny definition of quality must include meeting / satisfying /conforming to agreed/negotiated customer needs / requirements / wants / expectations.Customer definitionThe concept of customers include investors / employees / stakeholders / suppliers / the community and even interpersonal relationship.Customer satisfactionLong-term satisfaction of customer needs will be an aim of any total quality organization.AimA total quality organization will have a clearly stated, widely understood and generally accepted direction/aim.CommunicationA total quality organization will communicated openly and clearly its principles / beliefs / values / mission statement/policy for quality.EthosTotal quality management embodies the v alues / beliefs / ethos of the organization, and thus total quality is intrinsic to every activity, decision and action.ValuesThe highest levels of integrity, honesty, trust and nudeness is essential ingredients of total quality management.Mutual respect and benefitThere is an implicit mutual respect of all stakeholders involved with a total quality organization, which assumes that long term business is intended to be mutually beneficial to all concerned. Health and safetyHealth, safety and environmental issues have a high priority within a total quality organization since the welfare of all investors / employees / suppliers / the community as stakeholders in the enterprise is intrinsic to the future well being of the organization.CommitmentLeadership of total quality management stems from the top of the organization and enlists individual and team commitment throughout.Participation and ownershipTotal quality offers each individual the opportunity to participate in, and to feel ow nership of his/her activities, and jointly to share a sense of ownership for the success of the entire company.Continuous improvementTQM involves continuous and measurable improvement at all levels of the organization, ranging from organizational performance to individual staff performance, such that continuous process improvement becomes a great aspect of success.PerformanceTQM requires consistent, predictable, accurate, and precise performance to high standards in all areas of the organization. Therefore, measurement, assessment and auditing are common TQM activities.ResourcesOne major aim of every total quality organization is to use resources better, and to achieve greater success (financial and / or otherwise).InvestmentTQM will always require sufficient/ appropriate investment to ensure that planned activities can occur.Speaking in a similar vein, Onanusi (1998), remarked that every organization which want to unite her work force and provide horizons for thoughts and action a mongst them require the following values to compliment the above listed principles. Quality service focusing on clients in order to deliver quality service that exceeds expectation is an essential value.Quality peopleThis stems from recruiting the best people and training them to be the best of the best.MeritocracyConnotes providing employees with challenging opportunities for career development, based on their effectiveness in serving the client.The one-fourth valueConcerns the approach of employing the same methodologies and sharing resources to ensure that each employee delivers high quality services consistently.Integrity Which expects that everybody adhere to personal and professional standards.InnovationReferring to delivering unique solution to each clients needAnd the last value stewardshipConcerns a commitment to investigating in the future order to bequeath a stronger and more effective organization to future generation of people in the work place.From the above, it follo ws logically, that organizations will not begin the transformation of TQM until it is aware, recognized the importance and necessity of the principles of TQM towards quality improvement if they are to survive domestic and global competition.Robert Helter (1995) in The Leadership Imperative defines the concepts of TQM as a practical methodology for continuously improving all business process.But the Besterfields believe that TQM requires six basic concepts in order to integrate fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach. These concepts as highlighted by them include the following 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 supplies as partners Establishing perfor mance measures for the process.These concepts outline an first-class way to run a business. Organizations in Nigeria that practice TQM are therefore seriously advised to internalize the above concepts into their activities and continuously defend the concepts from dilution by carrying out quality audits periodically to ensure that established systems are maintained. As TQM concepts work when it is completely integrated into the culture of the organization and it becomes a way of life and an endless journey practiced by all.2.3.1 TQM AS A BUSINESS STRATEGY AND IMPLEMENTATIONAs Rao et.al (1996) remarked, most corporate leaders today would agree that the only constant in business life is change. This change can be large or small, rapid or slow, planned or unplanned, controllable or uncontrollable and it occurs in all aspects of organizational life.One of the tasks of TQM is the successful utilization of the tools and techniques. And above all, the ability to change the organizational culture so that paying help to quality is a normal part of the behavior of the organization. However, sustaining the method of organizational change necessary to transform an organization so that quality becomes a way of life is the hardest part of TQM process. It is important to recognize that TQM is not a program that can be implemented and completed rather TQM is an ongoing effort. This rationale was instructively noted in Crosbys work when he says, Do it all over again and Deming when he says, push the above thirteen points every day.2.4.1 TQM ImplementationWithout implementation, there is absolutely no point in a company adopting TQM as a business strategy for whatever purpose. Because from all indications, implementing TQM is a forever process, with no finite end. It is a never-ending journey of quality improvement process. This conclusively brings to us that, all in an organization need to work together to meet the challenges of implementing TQM. Even though there may be a m ajor difference in the degree of implementation, the relevant literatures of TQM focus largely on management and management techniques on TQM implementation.In implementing TQM in an organization, implementation plans need to be established in order to accomplish the organizational desired goals. Implementation plans in this context refers to sequence of events, programs, meetings, and activities designed to help employees learn new perspectives, skills, attitudes, behaviors in the TQM process. This means that the process of introducing TQM is one that requires changing various elements of the existing culture in the organization. The process must be planned and managed from the top. This is why Besterfields, et.al noted that, TQM implementation process begins with senior management and most important, the CEOs commitment, hence, the importance of the role of senior management. It is critically important that senior management take time to fully understand TQM and what it can achiev e for the organization and develop and agreed (at board level) plan for implementation before attempting to implement the plan. The attitude of senior management to TQM must be positively demonstrated everyday and in every action as stoicism and lack of involvement are frequently cited as the principal reasons for the failure of quality improvement efforts. Delegation and rhetoric is insufficient involvement is required. As a general rule, the senior management starts implementation with clear statement of quality policy which entails the ethics, mission and value of the organization and of course its philosophy. This can be regarded as the planning phase (where the decision to implement TQM is taken, the planning, implementing and monitoring processes are established as well as the organizational structures to be used in the implementation process). The next line of action under implementation process is organizational change phase. H