What is Total Quality Management? Definition & Manufacturing Examples

What is Total Quality Management?

Total Quality Management (TQM) is a comprehensive management philosophy and approach that focuses on continuous improvement of all organizational processes to deliver superior value to customers. TQM is "total" because it involves every person, every department, and every process in the organization — from the executive suite to the shop floor, from product design to customer service.

TQM emerged in the 1950s and 1960s from the work of quality pioneers including W. Edwards Deming, Joseph Juran, Philip Crosby, and Kaoru Ishikawa. It was first widely adopted in Japanese manufacturing, where it contributed to Japan's transformation from a producer of cheap goods to a global leader in quality. American and European manufacturers adopted TQM principles in the 1980s and 1990s in response to Japanese competitive pressure.

Unlike Six Sigma, which is a specific methodology with defined tools and belt structures, TQM is a broader philosophy that shapes organizational culture. TQM creates the environment in which specific improvement tools and methodologies — SPC, DMAIC, lean manufacturing — can thrive.

How TQM Works in Manufacturing

TQM is built on eight core principles that guide all organizational decisions and activities:

1. Customer Focus. Every activity should ultimately serve the customer. Quality is defined by the customer, not by internal standards alone. Understanding customer requirements — both stated and unstated — is the starting point for all quality efforts.

2. Total Employee Involvement. Quality is everyone's responsibility, not just the quality department's. Operators, engineers, managers, and support staff all contribute to quality. This requires empowerment, training, and an environment where employees feel safe raising quality concerns.

3. Process-Centered Approach. TQM views all work as processes that can be defined, measured, and improved. By focusing on processes rather than individual blame, organizations can systematically improve performance.

4. Integrated System. All processes and functions must work together as a unified system. Quality cannot be optimized in one department while being ignored in another. ISO 9001 provides a framework for this integrated approach.

5. Strategic and Systematic Planning. Quality improvement must be planned, not accidental. Strategic quality goals cascade from organizational objectives to departmental targets to individual actions.

6. Continual Improvement. TQM requires ongoing, never-ending improvement — Deming's concept of "constancy of purpose." The goal is not a fixed quality level but a trajectory of continuous enhancement.

7. Fact-Based Decision Making. Decisions must be based on data and analysis, not opinion or intuition. SPC, capability analysis, and Pareto charts provide the data foundation.

8. Effective Communication. Open, transparent communication across all levels and functions is essential for coordination and trust.

TQM Example

A mid-size manufacturer of industrial pumps implements TQM after losing two major customers due to quality and delivery problems. The implementation includes:

Customer focus: The company conducts structured interviews with its top 20 customers, discovering that delivery reliability is valued even more highly than price. This insight redefines quality priorities.

Employee involvement: Cross-functional quality teams are formed for each product line. Operators are trained in basic SPC and empowered to stop the line when they detect quality issues. A suggestion system is implemented, generating 180 improvement ideas in the first year — 42 are implemented.

Process improvement: The quality teams map all key manufacturing processes, identify the top defect categories using Pareto analysis, and launch corrective action projects for the vital few causes. The welding process alone yields a 60% reduction in defects after implementing standardized procedures and operator certification.

Results after 18 months: Overall defect rate decreases from 4.8% to 1.6%. On-time delivery improves from 78% to 94%. Customer complaints decrease by 65%. Both lost customers return with new orders, and three new customers cite quality reputation as their reason for selecting the company.

Why TQM Matters for Production Scheduling

TQM creates the organizational conditions that make production scheduling effective. Scheduling depends on predictable processes, reliable equipment, competent operators, and quality materials — all of which TQM addresses systematically.

In a TQM environment, quality assurance prevents defects rather than catching them after production. This means fewer unplanned rework operations, less scrap, and more predictable cycle times — all of which improve scheduling accuracy.

TQM's emphasis on continual improvement means that scheduling reliability gets better over time. Each improvement project reduces variation and waste, giving schedulers using tools like Resource Manager DB increasingly accurate data to work with.

The cultural aspect of TQM matters for scheduling too. When operators are empowered and engaged in quality, they flag problems early rather than letting them compound into schedule-disrupting crises.

Related Terms

• Quality Assurance — the systematic prevention approach that TQM formalizes across the entire organization
• Six Sigma — a structured improvement methodology that complements TQM's broader philosophy
• ISO 9001 — the international standard that provides a certifiable framework for TQM principles

FAQ

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This term is part of our Manufacturing & Production Scheduling Glossary. Learn more about quality control, scheduling, and manufacturing terminology.