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TQM 17,2
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RESEARCH AND CONCEPTS
Components of successful total quality management
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Juan Jose´ Tarı´ Department of Business Management, University of Alicante, Spain Abstract Purpose – According to the literature, quality management consists of a set of components: critical factors, tools, techniques and practices. The purpose of this paper is: to identify the components of total quality management (TQM), in order to make them known to managers and thus facilitate successful quality management implementation, and to show the situation of 106 ISO 9000 certified firms concerning these components. Design/methodology/approach – In order to achieve this objective, a literature review and a survey based on 106 ISO 9000 certified firms in Spain were developed. Findings – The results reflect that certified firms must develop their people orientation 1and use techniques and tools to a higher extent in order to progress towards total quality. Originality/value – The value of the paper is point out which TQM components are important to successfully implement TQM and identify the situation of these components in ISO 9000 certified firms in a particular area. Keywords Total quality management, ISO 9000 series, Spain Paper type Research paper
The TQM Magazine Vol. 17 No. 2, 2005 pp. 182-194 q Emerald Group Publishing Limited 0954-478X DOI 10.1108/09544780510583245
Introduction Total quality management (TQM) allows firms to obtain a high degree of differentiation and to reduce costs. In spite of its advantages (Sohal et al., 1991; Maani et al., 1994; James, 1996; Kanji, 1998; Lee, 1998; Quazi and Padibjo, 1998), problems have also been detected in its implementation (Joubert, 1998; Kanji, 1998; Quazi and Padibjo, 1998). Firms must develop a number of components in an integrated way for successful implementation (Easton and Jarrell, 1998; Claver et al., 1999). Various studies have been carried out for the identification of those elements of successful quality management, from three different areas: contributions from quality leaders, formal evaluation models and empirical research. Besides, researchers have identified a number of tools and techniques for quality improvement that are necessary for TQM success. Managers need to know which aspects they must consider to successfully develop TQM in their firms. The purpose of this paper is: to review the literature in order to identify the components of TQM that managers must implement to develop TQM to its full extent, as a management system improving quality and competitiveness; and to study the case of 106 ISO 9000 certified firms. This paper will be structured as follows: firstly, we shall review the literature, on the one hand, concerning TQM critical factors, and on the other, regarding the tools and techniques for quality improvement. The following section reflects the components of TQM that are required for managers to be aware of the factors of TQM success. The
next section shows the case of 106 ISO 9000 certified firms. Finally, a number of conclusions will be proposed.
A review of the literature As pointed out above, TQM can be studied from three different approaches: contributions from quality leaders, formal evaluation models and empirical research. Deming (1982, 1986) underlined the use of statistical techniques for quality control, and proposed his 14 principles to improve quality in organizations, based on the following ideas: leadership, an improvement philosophy, the right production from the beginning, training for managers and employees, internal communication aimed at the elimination of obstacles for cooperation and the suppression of quantitative objectives. Juran (1986) pointed out the importance of both technical and managerial aspects, and identified the three basic functions of the quality management process: planning, organization and control, as the stages for quality improvement; he indicated that the aim of the management is to reduce the cost of mistakes, reaching a point where the total costs of quality are minimal (Juran and Gryna, 1993). Ishikawa (1976, 1985) emphasized the importance of training, the usage of cause-effect diagrams for problem solving, and quality circles as a way to achieve continuous improvement. Crosby (1979) defined 14 steps for quality improvement, including top and intermediate management commitment, quality measurement, evaluation of quality costs, corrective action, training, a zero-defect philosophy, objective setting and employee recognition. Lastly, Feigenbaum (1991) described the notion of total quality, based mainly on leadership and an understanding of the aspects of quality improvement, a commitment to incorporate quality in the firm’s practices, and the participation of the entire workforce, the objective being the reduction of total quality costs. The research by all these authors shows both strengths and weaknesses, for none of them offers the solutions to all the problems encountered by firms (Dale, 1999), although some common issues can be observed, such as management leadership, training, employees’ participation, process management, planning and quality measures for continuous improvement. These ideas have exerted an influence upon later studies, in such a way that the literature on TQM has progressively developed from these initial contributions, identifying various elements for effective quality management. Taking the initial research as a basis, the critical factors of TQM found in the literature vary from one author to another, although there is a common core, formed by the following requirements (Claver et al., 2003): customer focus, leadership, quality planning, management based on facts, continuous improvement, human resource management (involvement of all members, training, work teams and communication systems), learning, process management, cooperation with suppliers and organizational awareness and concern for the social and environmental context. Alongside these factors, identified both in theoretical and empirical studies, there are standardized quality models used by firms in practice as a guide for their implementation, or in order to carry out self-evaluations of their quality practices. The main models are the Malcolm Baldrige National Quality Award model in the USA, the European Foundation for Quality Management (EFQM) model in Europe and the Deming Application Prize model in Japan.
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The USA model lists in seven categories the main concepts and values in quality management: leadership, strategic planning, human resources orientation, process management, information and analysis, customer and market focus and business results. The EFQM model consists of the following principles: leadership, employee management, policy and strategy, alliances and resources, process management, people results, customer results, society results and key results (EFQM, 2000). The Japanese model is grouped into ten chapters, which are in turn divided, as in the two previous models, into a number of subcriteria, in the following way: policies, organization, information, standardization, development and usage of human resources, activities ensuring quality, activities for maintenance and control, activities for improvement, results and future plans. These principles, in general, summarize the aspects defined in the literature. Thus, issues related to the participation of employees, staff, work teams and communication, amongst others, may be included within the factor of human resource management. In this line of work, we should refer to the studies by Anderson et al. (1994), who strive to synthesize a theory of quality management from research based on the Delphi method, carried out both on academics and on managers closely related with quality, and using questions related to Deming’s 14 principles. From their conclusions they obtain seven concepts which form Deming’s quality management theory: forward-looking leadership, internal and external cooperation, learning, administrative processes, continuous improvement, employees’ performance and customer satisfaction. Together with this study, there have been so far a number of contributions yielding a valid, reliable measurement tool to suitably evaluate these factors, which can help both researchers and managers who have to make decisions concerning TQM. First, we may quote the studies developing an instrument for measuring quality management, assessing its validity and reliability, applicable only to industrial firms (Flynn et al., 1994; Ahire et al., 1996); and second, the studies which develop a valid, reliable quality measurement instrument, applicable to both industrial and services firms (Saraph et al., 1989; Badri et al., 1995; Black and Porter, 1995, 1996; Grandzol and Gershon, 1998; Quazi et al., 1998), shown in Table I. A review of the literature also shows that, according to some authors, TQM is rather than a mere set of factors, a network of interdependent components, a management system consisting of critical factors, techniques and tools (Hellsten and Klefsjo¨, 2000). In fact, techniques and tools are vital to support and develop the quality improvement process (Dale and Shaw, 1991; Bunney and Dale, 1997; Stephens, 1997; Hellsten and Klefsjo¨, 2000; Curry and Kadasah, 2002). A single tool is a device with a clear function, and is usually applied on its own, whereas a technique has a wider application and is understood as a set of tools (McQuater et al., 1995). Ishikawa (1985) and McConnell (1989) identified a list of seven TQM tools: flow charts, cause and effect diagrams, Pareto charts, histograms, run charts and graphs, X-bar and R-control charts and scatter diagrams. Also, Imai (1986), Dean and Evans (1994), Goetsch and Davis (1997), Dale (1999), and Evans and Lindsay (1999) offered a list of tools and techniques for quality improvement. For their part, Dale and McQuater (1998) identified the tools and techniques most widely used by firms, as shown in Table II.
Badri et al. (1995)
Black and Porter (1995, 1996)
Training Product/service design Supplier quality management Process management Quality date and reporting Employee relations
Training
Product/service design
Supplier quality management
Process management
Quality date and reporting
Employee relations
Teamwork structures for process improvement Operational quality planning Quality improvement measurement systems Corporate quality culture
Communication of improvement information Customer satisfaction orientation External interface management Strategic quality management
Role of divisional top Role of divisional top People and customer management and quality policy management and quality policy management Role of the quality department Role of the quality department Supplier partnerships
Saraph et al. (1989)
Continuous improvement Employee fulfillment Learning
Leadership
Grandzol and Gershon (1998)
Design quality management Employee empowerment Product quality
Internal quality information usage Employee involvement Employee training
Public responsibility Customer satisfaction Employee satisfaction
Financial
Product/service quality Operational
Customer focus
SPC (statistical Process process control) usage management Benchmarking Internal/external cooperation
Customer focus
Top management commitment Supplier quality management Supplier performance
Ahire et al. (1996)
Quality data and reporting Quality circles Quality related performance Supportive structure
Employee’ role
Partnership with suppliers Process management Inspection policy
Product/service design process Integrating customer requirements Supplier selection and relationship Supplier capability
Top management responsibility Quality goals and policy Role of the quality department Training
Quazi et al. (1998)
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Table I. Critical factors of quality management according to the literature
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The seven basic quality control tools
The seven management tools Other tools
Cause and effect diagram Affinity diagram Check sheet Arrow diagram
186
Control chart Graphs Histogram Pareto diagram Scatter diagram
Table II. Commonly used tools and techniques
Matrix diagram Matrix data analysis method Process decision programme chart Relations diagram Systematic diagram
Techniques
Brainstorming Control plan
Benchmarking Departmental purpose analysis Flow chart Design of experiments Force field analysis Failure mode and effects analysis Questionnaire Fault tree analysis
Sampling
Poka yoke Problem-solving methodology Quality costing Quality function deployment Quality improvement teams Statistical process control
Source: Dale and McQuater (1998)
TQM and its components This examination allows us to say that: . The critical factors of TQM differ from one author to another, although there are common issues. . In practice, firms may follow known, accepted, standard models as a guide to carry out quality management. . TQM is much more than a number of critical factors; it also includes other components, such as tools and techniques for quality improvement. According to the literature, these elements may be grouped into two dimensions: the management system -leadership, planning, human resources, etc.- and the technical system (Evans and Lindsay, 1999); or into the “soft” and “hard” parts (Wilkinson et al., 1998). The technical system, as defined by Evans and Lindsay (1999), consists of a set of tools and techniques (run charts, control charts, Pareto diagrams, brainstorming, stratification, tree diagrams, histograms, scatter diagrams, force-field analysis, flow charts, etc.), while the hard part, according to Wilkinson et al. (1998), includes production and work process control techniques which ensure the correct functioning of such processes, amongst others, process design, the “just in time” philosophy, the ISO 9000 norm and the seven basic quality control tools. The two dimensions reflect all the issues that a manager must bear in mind for a successful TQM implementation. Therefore, the implementation of TQM cannot succeed without the use of quality management methods (Zhang, 2000). TQM consists of critical factors and methods (Sitkin et al., 1994; Wilkinson et al., 1998; Zhang, 2000). These methods are a set of practices, tools and techniques deriving from the critical factors, and are the basic elements required to implement such factors.
However, past evidence has shown that TQM programmes have failed because the success factors were not in place (Curry and Kadasah, 2002). Thus, although it is necessary to implement every component in order to succeed, one might wonder which critical factors and methods managers must be familiar with in order to successfully implement them. On the basis of a quality management methods review (Kanji and Asher, 1996; Zhang, 2000; Kanji, 2001) and the critical factors, tools and techniques review in the previous section, we propose the model in Table III, which may allow managers to know which components are necessary for successful TQM implementation. Implementing these aspects will allow TQM to be, rather than a passing fad, an improvement culture that promotes business improvement over time. We may include the involvement of all members in the firm, training, work teams and communication systems within one factor, namely, human resource management. TQM in ISO 9000 certified firms A questionnaire was designed based on the EFQM model and on a review of the literature, in order to measure the degree of implementation of TQM elements in ISO 9000 certified firms. The population selected for the study was those firms carrying out their activity in the Alicante area (eastern Spain) which have received the ISO 9000 certificate. The data were collected by means of a structured personal interview, carried out face to face, based on a closed questionnaire, plus a set of open questions which helped to clarify certain points. Finally, 106 firms were interviewed. Eight critical factors and five results were selected, as shown in Table IV, considering the enablers defined by the EFQM model and a review of the literature, defining the items from those fixed in that model and in the empirical work by Saraph et al. (1989), Badri et al. (1995), Black and Porter (1995, 1996), Powell (1995), Ahire et al. (1996), Grandzol and Gershon (1998) and Quazi et al. (1998). Alongside these factors, other questions were used to measure empowerment, the use of personnel policies and the use of quality improvement techniques and tools. The former were intended to study the level of empowerment within the firm, based on Lawler et al. (1992). The quality manager was asked about the percentage of employees who: participated in teams; contributed suggestions; received information; enjoyed decision-making autonomy; received training; and interacted with customers and/or suppliers. Together with this question, another one asked which percentage of employees were rewarded in any of the following ways (other than their wages): an individual monetary bonus; a collective monetary bonus; a share in the profits; a non-monetary reward; and a share in the firm’s stock. Regarding personnel policies (selection, training, appraisal and recognition and career development) managers were asked to indicate which policies had changed as a result of the implementation of a quality system. Finally, a question was asked in order to study the most frequent techniques and tools, by means of nominal qualitative variables. A total of 12 tools and techniques were identified, based on the research by Ishikawa (1985), Imai (1986), McConnell (1989), Dean and Evans (1994), Goetsch and Davis (1997), Dale and McQuater (1998), Dale (1999) and Evans and Lindsay (1999). Thus, those responsible for quality were asked whether they were not familiar with, were familiar with, used or regarded as a
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Critical factors
Methods (practices, tools and techniques)
Customer-based approach
188
Management commitment and leadership
Channels for processing customer complaints Identifying customer needs (surveys, market investigation, reports from vendors) Customer satisfaction survey After-sales service Top management commitment Quality council Support improvement activities Mission/vision statement Quality policy Quality goals Business plan Communication strategies Control and improve of plans Quality audit Employee performance evaluation Employee satisfaction evaluation Business evaluation Quality costs Use of indicators PDCA cycle Self-assessment activities (ISO 9000, EFQM model,. . .) Seven quality control tools Seven management tools Other tools Techniques
Quality planning
Management based on facts
Continuous improvement
Human resource management Involvement of all members in the firm
Training Work teams Communication systems
Learning Process management
Cooperation with suppliers
Table III. Methods in TQM
Organizational awareness and concern for the social and environmental context
Information communication Suggestion systems Work teams Recognition and reward systems Individual training plan Training for job requirements General training program Cross-functional teams Quality circles Bottom-up, top-down and horizontal communication among all the staff Work information Poster Slogan Personal letters Continuous training and education Quality manual Quality system procedures Work instructions ISO 9001 certificate Supplier audit Supplier evaluation Supplier training Agreed quality Environmental manual Environmental system procedures ISO 14001 certificate
Elements Customer focus (F) Customer satisfaction (R) Staff indicators (R) Process management (F) Leadership (F) Suppliers management (F) Learning (F) Quality performance (R) Quality planning (F) Social impact (R) Continuous improvement (F) Employee management (F) Employee satisfaction (R)
Mean
Deviation
5.87 5.71 5.64 5.50 5.48 5.41 5.27 5.27 5.07 4.64 4.52 4.40 3.90
0.60 0.52 0.94 0.73 0.88 0.77 0.87 0.59 0.78 1.24 0.87 0.86 0.90
Notes: F: Factor; R: Result
basic tool any of the following techniques and tools: graphs, SPC, benchmarking, quality costs, internal audits, failure mode and effects analysis (FMEA), cause and effect diagrams, Pareto diagrams, histograms, scatter diagrams, flow charts and problem-solving methodology. A descriptive analysis was made of these answers in order to gauge the situation of ISO 9000 certified firms concerning total quality. Table IV reflects the average score for each factor and result of TQM. The implementation of each TQM element expresses a higher or lower degree of TQM in the certified firms studied. Customer-related issues and process management are the most important. Human issues and continuous improvement activities are the least implemented components; such aspects are, incidentally, only briefly dealt with by the ISO 9000 norm. These results show that ISO 9000 certified firms implement human aspects to a lower extent than technical ones, and that alongside with improvement, social concerns and quality planning are the weakest areas. In order to go beyond the ISO 9000 norm and advance towards total quality, certified firms should obtain a higher employee involvement and engage in wider planning. The literature has pointed out that TQM and human resource management go hand in hand, the latter being the basis for part of the important success of TQM (Hill and Wilkinson, 1995; Briggs and Keogh, 1999). Nevertheless, practice shows a lower interest in the human side (Moreno, 1993; Lam, 1995; Van der Wiele et al., 1996). At times, it has been found that TQM success depends critically on human aspects (Powell, 1995). An interest in these issues focuses on facilitating employee involvement and developing personnel policies consistent with the new culture. Table V reflects the average participation in the six activities studied. The most common one is the training given to employees and, to a lower extent, information transmission, communication with suppliers and/or customers and decision-making power. The least usual ones are involvement through work teams and suggestions schemes. Although employee recognition is a crucial issue in any TQM context, it appears as a very weak area in the firms studied (Table VI), for the results showed a very low
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Table IV. Mean and standard deviation
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Table V. Empowerment
Table VI. Recognition
interest in such aspects, and in most cases it was already in place before the quality system was implemented. As regards personnel policies, the one that is most frequently used by firms is training, whereas evaluation and recognition and career development are the least usual ones. These elements are essential for full TQM implementation, as they create the culture within which the TQM tools and techniques can work. Table VII shows the use of quality improvement techniques and tools in ISO 9000 certified firms. These results indicate that weaknesses in ISO 9000 certified firms are: human aspects, such as work teams, suggestions schemes, recognition models, etc., and the
Percentage of employees
Mean
Median
Deviation
Received training Received information Interacted with customers and/or suppliers Enjoyed decision-making autonomy Participated in teams Contributed suggestions
80.26 57.39 46.75 42.64 36.05 33.87
100 60 30 30 20 22.50
31.04 40.62 37.09 34.92 34.95 31.35
Percentage of employees
Mean
Median
Deviation
Individual monetary bonus Share in the profits Non-monetary reward Collective monetary bonus Being given a share in the firm
27.41 12.69 6.09 4.85 4.45
0 0 0 0 0
38.94 31.47 21.19 19.38 13.65
Percentage of firms Not familiar Familiar Not Regarded as a Techniques and tools with with implemented Used basic tool Implemented
Table VII. Techniques and tools of TQM
Internal audits Graphics SPC Flow chart Problem-solving methodology Quality costs Histograms Benchmarking FMEA Pareto diagrams Cause and effect diagrams Scatter diagram
0.0 2.8 10.4 17.9
0.0 16.0 37.7 30.2
0.0 18.8 48.1 48.1
16 62.3 39.6 42.5
84.0 18.9 12.3 9.4
100 81.2 51.9 51.9
21.7 12.3 27.4 21.7 40.6 40.6
32.1 42.5 36.8 46.3 34.0 35.8
53.8 54.8 64.2 68.0 74.6 76.4
42.5 35.8 31.1 31.1 20.8 17.9
3.8 9.4 4.7 0.9 4.6 5.7
46.2 45.2 35.8 32.0 25.4 23.6
31.1 46.3
47.2 37.7
78.3 84.0
19.8 15.1
1.9 0.9
21.7 16.0
use of TQM techniques and tools, other than audits, graphs, statistical data and flow charts, typical in ISO 9000 certified firms. TQM allows firms to acquire these factors, within a renovation scheme aimed at improving quality and competitiveness. Then, ISO 9000 certified firms must develop these aspects in order to progress towards TQM. According to Van der Wiele et al. (2001), “one way of using the quality system to facilitate change is by working on improvement activities”. Such improvement activities may help managers to implement the critical factors of TQM by using the methods pointed out in Table III. Conclusions The review of the literature shows, on the one hand, that there have been numerous studies analyzing the critical factors for successful quality management implementation and its influence upon the results, and on the other, which techniques and tools might be best suited for quality improvement. After this review, it can be said that: there is no unique model for a good TQM programme; and TQM is a network of interdependent components, namely critical factors, practices, techniques and tools. This paper has pointed out, on the one hand, which TQM components must be considered by managers who desire to successfully implement TQM within their firms. Managers can use a set of methods in order to put in practice the critical factors of TQM. On the other hand, it has examined the TQM elements in ISO 9000 certified firms. The results may be used to identify the situation of many certified firms and show that this kind of firms must improve their people orientation and use quality improvement techniques and tools to a higher extent, even if the factors related to the hard part are more implemented, in order to progress towards TQM. If the final objective is to maintain the ISO 9000 certificate, they will stay at a basic TQM level and will show no interest towards a wider development of quality management components. However, if they wish to go beyond ISO 9000, these firms must improve all these aspects in order to improve their competitiveness. In practice, the next step could be the use of the EFQM model to define improvement activities. Then, once the management is aware of the TQM components, activities can be developed for their implementation. Such activities will include the practices, tools and techniques we have mentioned, a person responsible for implementation and a completion deadline, in order to verify that the implementation has been a suitable one. References Ahire, S.L., Golhar, D.Y. and Waller, M.A. (1996), “Development and validation of TQM implementation constructs”, Decision Sciences, Vol. 27 No. 1, pp. 23-56. Anderson, J.C., Rungtusanatham, M. and Schroeder, R.G. (1994), “A theory of quality management underlying the Deming management method”, Academy of Management Review, Vol. 19 No. 3, pp. 472-509. Badri, M.A., Davis, D. and Davis, D. (1995), “A study of measuring the critical factors of quality management”, International Journal of Quality & Reliability Management, Vol. 12 No. 2, pp. 36-53. Black, S. and Porter, L.J. (1995), “An empirical model for total quality management”, Total Quality Management, Vol. 6 No. 2, pp. 149-64.
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