Total Quality Management - CII Institute of Logistics

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Total Quality Management Total Quality Management 1.1 Introduction Total Quality Management (TQM) a sound methodology for continuous improvement has established itself very well over the years. It is deep rooted in the philosophy that status quo is painful and indeed going backwards. In-built in the minds of all of us is a strong desire to improve. TQM has evolved as a system, which can facilitate ‘improvement-efforts’ within organizations. We are not merely talking about increased profits but more importantly interested in relentless improvement programs where excellence in service and product quality is paramount. Some organizations may begin their TQM journey from a position of financial strength or quality reputation. Others may begin from a position of survival in which there are two alternatives namely get smarter or go out of existence. In a lighter vein, Dr. Deming said, “Survival is not compulsory”. In this present challenging and changing world, remaining static is a definite passport for existence. [‘standing still’ is a definite recipe for going out of existence]. The climate today is such that any progressive organization that wants not only to survive but also to grow and prosper on a long-term time horizon must be able to cope with rising customer expectations, higher standards in product and service quality, and intense competition both in the domestic and international marketplace. In addition, the other important factors namely government policies and legislations, demographic changes, customer choices and tastes, and external environmental pressures will compulsorily kindle the desire to improve. TQM is a long-term strategy. It is not simply a matter of conformance to customer’s specifications. If developed and implemented correctly, TQM will positively impact the hearts and minds of all people in an organization who are involved in various tasks. CII Institute of Logistics 4 Website: www.ciilogistics.com
Total Quality Management Historical Perspective of TQM In the 1920s, W.A. Shewhart developed control charts for reducing and stabilizing process variation using statistical methods. Thus, he paved the way for what we call statistical process control (SPC). In the 1930s, Dr. W. Edward Deming and Dr. Joseph M. Juran started to develop best approaches to quality control and assurance. While Dr. Deming was focusing on the philosophical foundations of quality, Dr. Juran adopted a full systems approach to quality. In 1948, Deming went to Japan and conducted his first seminar having found virtually no acceptance for his ideas in USA, which was giving more importance to quantity than quality. Japanese Standards Association was formed in 1950 and in the following year the Deming Award Scheme was announced. The 1950s saw Japan consolidating its home market, adding value to product and copying ideas from the rest of the world. The low cost structure of the 1960s enabled Japan to export globally, continuously adapting and exploiting markets. Yet, the western perception about Japan was still one of poor-quality goods. In the following twenty years, in a dramatic manner, the perception about Japanese goods and services has changed from shoddy quality to reliability, and good value for money, with the result that the economic balance of power has shifted from the West to Japan and the East in industries that include motor vehicles, shipbuilding, consumer goods, electronic components, textiles, banking and financial services, photography, video and watch making among the many. In the mid 1060s, United States pointed to a slow development of conventional quality control techniques coupled with Quality Circles. During the same period, Philip B. Crosby introduced the concept of ‘zero defects’ as a performance yardstick within the conceptual framework of his quality absolutes. At the end of the 1970s, the first CII Institute of Logistics 5 Website: www.ciilogistics.com
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