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Lecturer: Prof. Eldigario D. Gonzales, DPA, CSEE

University Professor (SG30)Former President of PASUC, WMSU and SWU

Former Deputy Secretary General, HUDCC

TOTAL QUALITY MANAGEMENT

(TQM) in

ORGANIZATIONS

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I. INTRODUCTION

- Brief history of administrative thought

- Scientific Management , MBO, PPBS

Reingineering

- Performance Evaluation

- Systems Model

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Definitions of Total Quality Management

a) Total implies applying the searchfor quality to every aspect of work,from identifying customer needs toaggressively evaluating whether thecustomer is satisfied.

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QUALITY means meeting andexceeding customer satisfactions.

MANAGEMENT means developing and

maintaining the organizational capacityto constantly improve quality.

Cohen and Brand, 1993, pp. xi-xii, cited by MarkHolzer in an article entitled Productivity andQuality Management

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b) Quality is the key word for the TQMprinciple, which emphasizes that suchvalue needs to be inculcated all

throughout the organization, whether onproducts or services, extending fromsupplier to customer. Hence the word

total

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The American Society for Quality Controldefines quality as the totality offeatures and characteristics of a

product or service that bear on itsability to satisfy stated or impliedneeds

Render and Heizer 1998:90

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The importance of quality to privatefirms comes in the form of increasedmarket share and cost savings.

Likewise, quality precedes reputation.

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TQM works on the assumption that constant

improvement in quality is the key tosuccess. The qualitybanner is interpretednot only as quality of product or service,

but quality in its every manifestation, i.e.,quality of work, quality of people, quality ofobjectives. TQM considers defects

inefficiencies which if ignored would costthe organization much more had they beenaddressed earlier.

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In the end, an organizationsperformance is measured not onlyin terms of outputs but also more

importantly, in terms of clientsatisfaction.

Mangahas, J and Leyesa, Daryl, 1998

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c) US Defense Department, 1992

TQM is both a philosophy and a set ofguiding principles that represent thefoundation of a continuously improvingorganization.

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TQM is the application of quantitativemethods and human resources toimprove materials and services supplied

to an organization, and the degree towhich the needs of the customer aremet, now and in the future.

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d) The Federal Quality Institute, USA, 1992

TQM is a strategic integrated managementsystem for achieving customer satisfaction

through the involvement of all employeesand continuous improvement of all theorganizations processes and use of

resources.

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DEMINGS 14 POINTS FOR

IMPLEMENTING QUALITY MANAGEMENT

1. Create consistency of purpose.- focus on product and serviceimprovement

2. Lead to promote change.- adoption of the correspondingmanagement

attitude- dynamism without losing purpose

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3. Build quality into the product; stop

depending on inspections to catchproblems.

- process improvements are there to

achieve prevention rather than justwait

for these defects to be detected

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4. Build long-term relationships based

on performance instead of awardingbusiness on the basis of price.

- sustaining partnership with suppliers

5. Continuously improve product; quality

and service.- constantly improving product

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6. Start training.

- training must be emphasized

7. Emphasize leadership.

- empowered workforce

8. Drive out fear.- risk taking attitude of leaders

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9. Break down barriers betweendepartments.- promote team building

10. Stop haranguing workers.- promotes empowerment of workers,seeks to eliminate any form of tiradethat only insults the employees

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11. Support, help, and improve.

- provides emphasis on supportrequired

for achieving it.

12. Remove barriers to pride in work.

- example, abolitions of annual

performance appraisal.

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14. Put everybody in the company on the

transformation- full transformation could be

achieved when everyone in every levelin the organization is involved in thefull transformation of the organization.

Anschutz 1996: 17-28

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SIX (6) QUALITYMANAGEMENT PRINCIPLES

1. Customer-centerednessThis is in consonance with thecustomer obsession component. TQM

has been defined as a people-focusedmanagement system that aims atcontinual increase of customersatisfaction at continually lower cost(Roberts and Sergesketter 1993:2)

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The customers are accorded the

highest performance and TQM compelsan organization to constantly improveits processes and do better according to

their respective needs and expectations.However, some literatures emphasizethat while customers constantly go to

the organization for service, it does notnecessarily mean they are satisfied.

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2. Effective Leadership

Deming highlights the importance ofgood leadership, citing that 80% ofquality problems is caused by

management, and 20% by employees(Domningo 1994:9). This does not meandownplaying the equally important role

of the employees, but it just stresseswhere the responsibility

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of establishing unity of purpose and

direction lies. It is up to the leaders tocreate an environment that fosters totalquality. The operating level of a

company looks up to their leaders fordirection and motivation. Thus, leadersare required to promote opencommunication and clear organizational

vision. If management fails in thisresponsibility it is expected thatdiscontinuities will follow.

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3. Personal Involvement and StrategicPartnerships

Personal involvement substantiatesthe empowerment component of totalquality management. Empowerment ofthe people involved, i.e. employees andcustomers, develops into lasting

partnerships, especially when each hasidentified his/her own personal growthand development with the organizations

vision. This important connection

between personal aspirations and actualwork responsibility defines a moreproductive outcome that is personalleadership.

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4. Systems and Process Approach

- Process approach is deemed as an

efficient manner of meeting requirementsof both internal (employees) and external(clientele) customers. In this principle,

there is the need to correlate the resourcesand activities involved with theresponsibilities and interfacing of functions

throughout the whole process.Troubleshooting of problems can be in theform of process improvements.

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5. Continuous Improvement- Just like the kaizen practice of the

Japanese, quality improvement shouldbe seen as a continuous activity. Demingdescribes this through the Plan-Do-Check-Act cycle, said to have been firstdeveloped by Dr. Walter A. Shewhart(QMP 1998). The cycle, which actuallyrefers to planning of activities implementing the plan- checking theresult-improvement of the process, has

now been standardized as benchmarksand criteria for several qualityimprovement efforts and practices.

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6. Informed Decision Making- In the system approach, scientific

method is cited as one the philosophicalfoundations to quality and processimprovements. There is a need to practicemanagement by fact more thanmanagement by opinion. Likewise, dataand scientific reasoning have beenemployed to guide and evaluateperformance and quality, in order to secureand build upon the gains from pastimprovements. This contends that only aninformed decision can effectively guide theorganization in achieving results.

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TQM in a University Setting

FUNCTIONS:

1. Provides the leadership and

management in the implementationof a University-wide TQM policies;

- creation of a TQM office

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2. Provision of TQM Manual for all offices,to wit:

(a) Office of the Student Affairs(b) Registrars Office(c) Admissions Office

(d) Deans Office(e) Student Accounts Section(f) Guidance Center

(g) University and College Libraries(h) HRDM(i) Scholarships Office

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3. Monitors implementation of TQM

processes4. Regularly Evaluates TQM

implementation

5. Upgrades policies and processes inaccordance with new work ethics and ,in consonance with competition.

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CONCLUSION

In summary, TQM in essence isthe continuous improvements inoutputs and processes, that these

improvements are in consonance withthe clients perception of quality and

value. In the end, an organizations

performance is measured not only interms of outputs but more importantly,in terms of client satisfaction.

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In the industry, Alvin Tofler in his

book Future Shock 1970, identifies 3elements of Client satisfaction that theindustry should do;

1. anticipate what customers want

2. create what customers want

3. change what customers want