TQM stands for Total Quality Management is a comprehensive and systematic approach to lead the organization to excellence. TQM includes management strategies, cultural and structural changes, resources management, necessary tools and techniques and management methods used to enhance quality and productivity in organizations.
The origin of TQM was derived during the 1980's by Dr. W. Edwards Deming and Dr. Joseph Juran. Both also introduced Statistical Quality Control as a concept of management using statistical theory and developed TQM in Japan. Deming himself set out 14 points in his book "Out of the crisis" in 1982. Although Deming does not use the term Total Quality Management in his book, the most of the main features of TQM are contained in "Out of the crisis" (http://en.wikipedia.org/wiki/W._Edwards_Deming#cite_ref-crisis_21-0):
- Create constancy of purpose toward improvement of product and service.
- Adopt the new philosophy. Management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.
- Cease dependence on inspection to achieve quality.
- End the practice of awarding business on the basis of price tag.
- Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.
- Institute training on the job.
- Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job.
- Drive out fear, so that everyone may work effectively for the company.
- Break down barriers between departments.
- Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships.
- Remove barriers that rob the hourly worker of his right to pride of workmanship.
- Remove barriers that rob people in management and in engineering of their right to pride of workmanship.
- Institute a vigorous program of education and self-improvement.
- Put everybody in the company to work to accomplish the transformation
At the beginning, TQM based on the participative management, continuous process improvement, and the use of teams to establish a sustainable successful organization and comprised at least the following six principles:
- Customer focus
- Process focus
- Prevention versus inspection
- Employee empowerment and compensation
- Fact-based decision making
- Receptiveness to feedback
The above mentioned TQM principles are also integral parts of a company's quality management system according the quality management standards later than 2000 (compare with the eight quality management principles of the ISO 9000 series).
TQM focuses all the resources of an organization upon meeting the needs of customers (both internal and external), using statistical tools and techniques to measure results and aid decision making to achieve continuous organizational improvement through the participation and commitment of employees throughout a company. The concept of TQM provides incentives for employees to identify quality topics and to make decisions relative to quality in the production process. Their contributions are highly valued, and their suggestions are implemented. In order to perform this function, employees are given continual and extensive training in quality measurement tools. To facilitate the increase in product and process quality, great value is placed on teamwork. The contributions of teams are considered vital to the success of the company. One of the most common types of teams is the quality circle, a team of volunteer production employees and their supervisors whose purpose is to increase the product and process quality.
Implementation of total quality management requires generally a five-phase approach consists of:
During preparation, management decides whether or not to implement a TQM system. They take part in initial trainings, identify needs for additional resources and external experts, develop a specific vision, a corporate policy and objectives, commit the required resources, and communicate the goals throughout the organization.
In the planning stage, a detailed plan of implementation is worked out, budget and schedule are fixed, the project structure is established, and the resources necessary to implement the plan are secured.
Assessment phase engages in systematic self-assessment of the organization's product and service processes, as well as the organization as a whole. By this means, improvement potentials are assessed.
During the implementation phase, the improvement activities are planned and performed. Thereby, supporting personnel are nominated and trained, and managers and the work force are coached. Training includes presentations of TQM including its benefits for the organization, and aims at raising awareness of staff.
In diversification stage, managers deploy their TQM experiences and successes in order to communicate with stakeholders outside the organization, such as suppliers, distributors, and other organizations. Diversification activities could include training, rewarding, supporting, and partnering with stakeholder involved by the organization's TQM program.
Although all TQM philosophies share common features emphasizing quality, teamwork, and foresighted philosophies of management, employee empowerment and process improvement, there are smooth diversity associated with the framework and implementation of TQM, in particular in different countries or continents or regions, vary between different organizational cultures and TQM program, and application. The most known TQM bases on management models and their assessment criteria are established as TQM Awards, especially Deming Prize in Japan, Malcolm Baldrige National Quality Award (MBNQA) in the USA and European Excellence Award (EEA) (until 2005 European Quality Award (EQA)) based on European Foundation of Quality Management EFQM-Modell in European Union. These award models consider the whole organization and its associated activities and can be used for a self-assessment for a TQM implementation.
The Deming Prize is a Japanese award given to companies to recognize their efforts in quality improvement. The award has been given by the Union of Japanese Scientists and Engineers (JUSE) since 1951. Competition for the Deming Prize was opened to foreign companies in 1984. The Deming Application Prize is an annual award presented to an organization that has implemented TQM suitable for its management philosophy, scope/type/scale of business, and management environment. Regardless of the types of business, any organization can apply for the Prize under certain conditions, be it public or private, large or small, domestic or overseas, or part of or entire organization.
The definition of the TQM reads in Deming Award Model as follows: TQM is a set of systematic activities carried out by the entire organization to effectively and efficiently achieve the organization's objectives so as to provide products and services with a level of quality that satisfies customers, at the appropriate time and price. (The Deming Prize Guide For Overseas, 2010)
The Deming Application Prize considers the following three particulars by means of TQM.
- Customer-oriented business objectives and strategies are established in a positive manner according to the management philosophy, type of industry, business scale, and business environment with the clear management belief.
- TQM has been implemented properly to achieve business objectives and strategies as mentioned in item above.
- The business objectives and strategies in the first item above have been achieving effects as an outcome of the items above.
The Deming Prize covers three categories, the Deming Prize for Individuals, the Deming Distinguished Service Award for Dissemination and Promotion (Overseas) and the Deming Application Prize.
The attendance at the Deming Application Prize needs a Description of TQM Practices (DTQMP) of the applicant organization to facilitate an easy understanding of its TQM status.
The Description of TQM Practices (DTQMP) is a written report that describes the applicant organization's TQM status and will be referred by the examiners to grasp the applicant's activities from the time of introduction to the time of application, including resulting effects. It is the subject for the document examination to judge if the applicant organization qualifies to stand for the on-site examination. It is also used as a reference for the on-site examination. The DTQMP should be compiled as a general DTQMP and as a departmental DTQMP.
The contents of the Corporate-General DTQMP and Organization-General DTQMP are:
- Outline of the applicant organization
- Management objective and policy
- TQM introduction and promotion
- Status of TQM implementation
- Effects of TQM implementation and future plans
- Senior executives' thoughts on TQM Practices
Departmental DTQMP should describe each departmental activity within the applicable examination unit. Please clarify the following points in description:
- Functions or segregation of duties that must be fulfilled by the department of the applicable examination unit
- Organizational structure of the department of the applicable examination unit
- Process establishment and securement of management resources for the department of the applicable examination unit in order to implement segregation of duties
- Management assignment of the department of the applicable examination unit
- The TQM implementation status as well as features of the department of the applicable examination unit
An arrangement of chapters, items and description of contents in the DTQMP can be found in the guides of The Deming Prize Committee (1. Example presented in the Guide for The Deming Application Prize For Overseas, 2010):
- Outline of the Organization
- Business Goal and Strategies
- TQM Promotion
- Policy Management
- Daily Work Management
- Cross-Functional Activities
- Problem Solving / Task Achievement
- Quality Circle Activities
- Practice of Base building strategies (or Establishment/Practice of management system)
- Strategies (or Establishment/Practice of managing system)
- Practice of Challenging strategies
- Overall Effects
- Future Plan
The Deming Prize examination does not require applicants to conform to a model provided by the Deming Prize Committee. Rather, the applicants are expected to understand their current situation, establish their own themes and objectives and improve and transform themselves organization-wide. Not only the results achieved and the processes used, but also the effectiveness expected in the future are subjects for the examination. To the best of their abilities, the examiners evaluate whether or not the themes established by the applicants were commensurate to their situation; whether or not their activities were suitable to their circumstance and whether or not their activities are likely to achieve their higher objectives in the future (Guide for The Deming Application Prize For Overseas, 2010).
The Overall Flow from Application to Awarding involvs:
- Application Procedures
- Submittal of the Description of TQM Practices
- Document Examination
- Notification of the Exam results
- On-Site Examination
- Report on Examination Findings
- Determination of Prize Winners
- Public Announcement of Prize Winners
- Award Ceremony
The W. Edwards Deming Institute presents the outcomes of The Deming Prize and Development of Quality Control/Management in Japan as:
The Deming Prize, especially the Deming Application Prize which is given to companies, has exerted an immeasurable influence directly or indirectly on the development of quality control/management in Japan.
Applicant companies and divisions of companies sought after new approaches to quality management that met the needs of their business environment and challenged for the Deming Prize. Those organizations developed effective quality management methods, established the structures for implementation, and put the methods into practice.
Commonly, those who have challenged for the Prize share the feeling that they have had a valuable experience and that the management principle of achieving a business success through quality improvement has really worked. Through witnessing the success of these organizations, many other companies have been inspired to begin their own quest for quality management. Learning from those who went before them, the new practitioners are convinced that quality management is an important key to their business success and that the challenge to attain the Prize can provide an excellent opportunity to learn useful quality methodologies. Thus, quality management has spread to many organizations, its methods have evolved over the years, and they contributed to the advancement of these organizations' improvement activities.
(The W. Edwards Deming Institute, [http://deming.org/index.cfm?content=511|http://deming.org/index.cfm?content=511])
The Malcolm Baldrige National Quality Award, established by the Foundation for the Malcolm Baldrige National Quality Award in 1988, is named after the former Secretary of Commerce, Malcolm Baldrige. The Malcolm Baldrige National Quality Award created by the United States Congress through the Malcolm Baldrige National Quality Improvement Act (Public Law 100-107) and targeted to reward and stimulate quality initiatives by recognizing of companies that implement and demonstrate high quality standards. In 1999, categories for education and health care were added to the original three categories: manufacturing, service, and small business. In 2007, a nonprofit category was added. Up to 18 awards may be given across the six eligibility categories each year.
In 2010 the program's name was changed to the Baldrige Performance Excellence Program using the developed Criteria for Performance Excellence form the basis for self-assessments that give feedback to Award applicants and evaluate organizations for the Award.
The U.S. Commerce Department's National Institute of Standards and Technology (NIST) administers the Baldrige Award.The Baldrige Award is open to organizations that are headquartered in the United States, including U.S. subunits of foreign organizations. To be eligible, the organization must have existed for at least one year and have the operational practices associated with all of its major organizational functions available for examination in the United States or its territories. The organization should be able to share information on the seven Criteria categories at the organization's U.S. facilities and The Quest for Excellence Conference.
To compete for the Baldrige Award, organizations must achieve an application process consists of two steps: the first is to provide a completed Eligibility Certification Package, and the second is to submit a completed Award Application Package.
To participate in the Baldrige Award, organizations must complete an application process consists of two stages, providing a completed eligibility certification package, and submitting a completed award application package. A team from the Board of Examiners reviews each award application against the Criteria for Performance Excellence by means of an independent and consensus assess of application package and site visits (of the higher-scoring organizations). Feedback reports are mailed at various times during the award cycle based on the stage of review an applicant reaches in the evaluation process. Strict confidentiality is observed at all times and in every aspect of application review and feedback. At the conclusion of the review process, each award applicant receives a feedback report. The report contains an applicant-specific listing of strengths and opportunities for improvement based on the Criteria.
The requirements of the Criteria for Performance Excellence are presented in seven categories, as follows:
1 Leadership (available points: 120)
- Vision, values, and mission
- Communication and organizational performance
1.2 Governance and Societal Responsibilities
- Organizational governance
- Legal and ethical behavior
- Societal responsibilities and support of key communities
2 Strategic Planning (available points: 85)
- Strategy development process
- Strategic objectives
- Action plan development and deployment
- Performance projections
3Customer Focus (available points: 95)
3.1Voice of the Customer
- Customer listening
- Determination of customer satisfaction and engagement
- Product offerings and customer support
- Building customer relationships
4 Measurement, Analysis, and Knowledge Management (available points: 90)
4.1 Measurement, Analysis, and Improvement of Organizational Performance
- Performance measurement
- Performance analysis and review
- Performance improvement
4.2 Management of Information, Knowledge, and Information Technology
- Data, information, and knowledge management
- Management of information resources and technology
5 Workforce Focus (available points: 85)
- Workforce capability and capacity
- Workforce climate
- Workforce performance
- Assessment of workforce engagement
- Workforce and leader development
6 Operations Focus (available points: 85)
- Work system design
- Work system management
- Emergency readiness
- Work process design
- Work process management
7 Results (available points: 450)
7.1 Product and Process Outcomes (available points: 120)
- Customer-focused product and process results
- Operational process effectiveness results
- Strategy implementation results
7.2 Customer-Focused Outcomes (available points: 90)
- Customer-focused results
7.3 Workforce-Focused Outcomes (available points: 80)
- Workforce results
7.4 Leadership and Governance Outcomes (available points: 80)
- Leadership, governance, and societal responsibility results
7.5 Financial and Market Outcomes (available points: 80)
- Financial and market results
The scorings of the applicant's assessment by means of the evaluated Criteria for Performance Excellence are based on two evaluation categories:
- process and
"Process" refers to the methods the organization uses and improves to address the item requirements in categories 1--6. The four factors used to evaluate process are approach, deployment, learning, and integration (ADLI). A process item score of 50 percent represents an approach that meets the overall requirements of the item, that is deployed consistently and to most work units, that has been through some cycles of improvement and learning, and that addresses the key organizational needs. Higher scores reflect greater achievement, demonstrated by broader deployment, significant organizational learning, and increased integration.
"Results" refers to the organization's outputs and outcomes in achieving the requirements in items 7.1--7.5 (category 7). The four factors used to evaluate results are levels, trends, comparisons, and integration (LeTCI). A results item score of 50 percent represents a clear indication of good levels of performance, beneficial trends, and appropriate comparative data for the results areas covered in the item and important to the organization's business or mission. Higher scores reflect better trends and levels of performance, stronger comparative performance, and broader coverage and integration with the requirements of the business or mission.
The Baldrige Award applicants refer the following benefits (based on annual surveys conducted by the Baldrige Panel of Judges, see the web site of the award):
- Accelerated improvement efforts
- Energized employees
- An outside perspective
- Learning from the feedback
- Aligned efforts and resources
- An integrated approach to management
- Focus on results
- Enhanced certification and accreditation efforts
- Role-model status and pride
The European Excellence Award (EEA) is an annual award based on the Excellence Modell of the European Foundation for Quality Management (EFQM). The EFQM Excellence Model was introduced at the beginning of 1992 as the framework for assessing applications for European and National Excellence Awards. Since 2006, the European Excellence Award (EEA) is the retitled successor of the European Quality Award (EQA) applied first in 1992.
The EFQM is a global non-for-profit membership foundation based in Brussels, Belgium and has more than 500 members in more than 55 countries. The objective of the Foundation is offering a unique platform for organizations to learn from each other and improve performance. The Foundation is the custodian of the EFQM Excellence Model applied by over 30000 organizations worldwide and administrates the European Excellence Award.
The EFQM Excellence Model is designed to recognize and promote sustainable success and to provide guidance to organizations using the EFQM Levels of Excellence:
- Committed to Excellence
- EFQM Recognised for Excellence
- EFQM Excellence Award
- EFQM Customised Assessments
The EFQM Excellence Award is the highest form of recognition of organizational excellence within the EFQM levels of Excellence.
The EFQM Excellence Award is applicable in four categories depending on the applicant organizations size, scope and complexity:
- Small & medium scope – private for profit,
- Large scope – private for profit,
- Small & medium scope – public not for profit,
- Large scope – public not for profit.
The participant organizations can be awarded one of the three classifications as award winner or prize winner or finalist.
The EFQM Excellence Model is in 2010 revised and bases on three enhanced key aspects:
- The fundamental concepts of excellence,
- The model framework based on nine criteria to address in order to achieve true excellence,
- The assessment framework based on RADAR logic.
The fundamental concepts of excellence - with a brief description from the publications of the EFQM (see the web link on the end of this section) - are:
- Achieving Balanced Results
Excellent organizations meet their Mission and progress towards their Vision through planning and achieving a balanced set of results that meet both the short and long term needs of their stakeholders and, where relevant, exceed them.
- Adding Value for Customers
Excellent organizations know that customers are their primary reason for being and strive to innovate and create value for them by understanding and anticipating their needs and expectations.
- Leading with Vision, Inspiration & Integrity
Excellent organizations have leaders who shape the future and make it happen, acting as role models for its values and ethics.
- Managing by Processes
Excellent organizations are managed through structured and strategically aligned processes using fact-based decision making to create balanced and sustained results.
- Succeeding through People
Excellent organizations value their people and create a culture of empowerment for the balanced achievement of organizational and personal goals.
- Nurturing Creativity & Innovation
Excellent organizations generate increased value and levels of performance through continual and systematic innovation by harnessing the creativity of their stakeholders.
- Building Partnerships
Excellent organizations seek, develop and maintain trusting relationships with various partners to ensure mutual success. These partnerships may be formed with customers, society, key suppliers, educational bodies or Non-Governmental Organizations (NGO).
- Taking Responsibility for a Sustainable Future
Excellent organizations embed within their culture an ethical mindset, clear values and the highest standards for organizational behaviour, all of which enable them to strive for economic, social and ecological sustainability.
The EFQM Excellence Model based on the fundamental concepts of excellence contents nine criteria. Five of these are "Enablers" and four are "Results".
The EFQM Excellence Model:
- Leadership (Score 100)
- Strategy (Score 100)
- People (Score 100)
- Partnerships & Resources (Score 100)
- Processes, Products and Services (Score 100)
- Customer Results (Score 150)
- People Results (Score 100)
- Society Results (Score 100)
- Key Results (Score 150)
The Enablers criteria consist of each four to five sub criteria and cover what an organization does and how it does it. The Results criteria include what an organization achieves. The Results criteria 6, 7 and 8 enclose "perception" and "performance indicators" as sub criteria and the criterion 9 "key strategic outcomes" and "key performance indicators". The Results are caused by "Enablers" and the feedback from "Results" allow improvement of "Enablers".
The assessment framework of the Excellence Model is based on RADAR logic provides a methodical approach to identify and evaluate the performance of organizations. The RADAR logic is an integral part of the Model's application for all Award categories and also a generic management tool for excellence systems.
The RADAR logic allows evaluating and determining the excellence of an organization using the elements
determine the required Results it is aiming for as part of organization's strategy. These cover the scope, relevance and integrity of measures used and the expectations of its stakeholders as well as the performance of the organization, both financially and operationally.
- Relevance and usability with the attributes "Scope & Relevance", "Integrity" and "Segmentation"
- Performance with the attributes "Trends", "Targets", "Comparisons" and "Causes"
includes the attributes "Sound" and "Integrated" in order to plan and develop an integrated set of sound Approaches to deliver the required results.
considers the implementation of approaches with the attributes "Implemented" and "Systematic".
- Assessment and Refinement
uses the attributes "Measurement", "Learning and Creativity", and "Innovation and Improvement" to define how suitable and regular measurement of the approaches is carried out, how learning and creativity is used, and how potential improvements are prioritized and their plan implemented.
Organizations intend to apply for the EFQM Excellence Award is required to either be an EFQM member or become and EFQM member. All applicants are qualified at 500 points before they can enter the Award process. The Award is open to these organizations in Europe including EU Countries and organizations in countries having an EFQM partner or representation and national Award process, such as Russia, Turkey, and Ukraine.
Applicants outside Europe achieved 5 stars R4E directly from EFQM against the 2010 Model with business relationships to Europe, can apply to the EFQM Excellence Award (maximum 20 % of the total number of applicant per Award cycle from outside Europe).
The Award procedure needs the following documents delivered by the applicants:
- Signed EEA application form
- Qualification file - (Key information, most important results and a list of other results available)
- Enabler map or a 75-page submission document
- Enabler map (Approaches mapped to the x24 enabler criterion parts, links to evidence, enabler to result cause-effect) or
- 75-page document - (narrative style with criterion parts 1a-9b)
The Award process includes five main phases for the applicant and for the assessor team and aligned with the needs of the participant organization.
- Prior assessor briefing event
- Individual assessment
- Team formation
- Contact with applicant and process support person
- Briefing event
- Assessor team meeting – understanding key information
- Creating site visit outline
- Meeting with applicant
- Preparing site visit
- Assessment of participant documents
- Collecting of questions for Site Visit
- Site visit
- Opening meeting with senior management team
- Site Visit
- Consensus meeting and scoring
- Closing meeting
- Post site visit & feedback
- Finalizing of Feedback Report
- Face-to-face feedback meeting
- Information for Jury
After the completion of this Award process for each participant organization, the EFQM Award Jury reviews the evidence and feedback provided by the Assessment Teams and can recognize applicants under 3 levels (see the web link on the end of this section):
- EFQM Excellence Award Finalist
The assessment has determined that the applicant has achieved a consistent level of excellence, with excellent deployment of their strategies through a robust framework of processes. They are achieving high levels of performance and, based on the evidence available, the Assessment Team and Jury are confident this level of performance will be sustained.
- EFQM Excellence Award Prize Winner
In addition to the above, the Assessment Team and Jury feel that the approaches adopted within one of the "Fundamental Concepts of Excellence" are outstanding and provide a role model to other organizations.
- EFQM Excellence Award Winner
Award Winners are role model organizations in a number of the "Fundamental Concepts of Excellence". They are achieving outstanding levels of performance in all areas and the Jury is convinced, based on the evidence available, that these levels of performance will be sustained. The Jury is under no obligation to nominate an Award Winner each year; if they do not feel confident that any of the applicants has achieved the required standard, they will not name an Award Winner.
The EFQM Excellence Model provides
- a basis for sustainable excellence
- a corporate framework of the whole organization
- a chance to take a hard look at itself
- the smartness to guide improvement activities using the self-assessment method
- an opportunity to benchmark
- the capability to assess improvement through a dynamic scoring methodology.
EFQM Excellence Model: http://www.efqm.org/en/
National Institute of Standards and Technology (NIST) [http://www.nist.gov/quality-portal.cfm|http://www.nist.gov/quality-portal.cfm]
Union of Japanese Scientists and Engineers (JUSE): [http://www.juse.or.jp/e/deming/|http://www.juse.or.jp/e/deming/]