Total Quality Management Principles is based on the following principles: Primary responsibility for product quality rests with top management— Management should create an organisational structure, product design process, production process and incentive that encourages and rewards good quality. Juran has clearly stated, “The critical variable in Japanese quality leadership is the extent of active participation by senior managers.” [ Total Quality Management Principles ] Quality should be customer focused and evaluated using customer-based standards— A product is not easy to use and a service is not courteous and prompt unless customers say they are. This fact requires organisations to work closely with their customers to determine what the customers want in the products and how they receive value from the products. [ Total Quality Management Principles ] The production process and work methods should be designed consciously to achieve quality conformance— Using the right tools and equipment, mistake-proofing processes, training workers in the best methods and providing good work environment help to prevent defects rather than catching them. In addition, tightly synchronised production systems with quick communication among workers promote quick identification and solution of quality problems. [ Total Quality Management Principles ] Every employee is responsible for achieving good product quality— This translates into self-inspection by workers themselves rather than by separate quality control personnel. It requires workers to cooperate in identifying and solving quality problems. [ Total Quality Management Principles ] Quality cannot be inspected in a product, so make it right the first time— Making it right or doing it right the first time should be the goal of every worker. Methods such as poka-yoke and structured machine setups which increase the chance of doing it right the first time should be utilised as much as possible. [ Total Quality Management Principles ] Quality should be monitored to identify problems quickly and correct quality problems immediately— Statistical methods can play a useful role in monitoring quality and identifying problems quickly. But self-inspection and assessment of work by employees and customer assessments of quality are important components of the quality monitoring mechanism.
The organisation should strive for continuous improvement– Excellent product quality is the result of workers striving to improve product quality and productivity on an ongoing basis using experience and experimentation. However, continuous improvement does not happen on its own. Organisational structures, work procedures and policies should be established to promote and accelerate continuous improvement.
A variety of organisational mechanisms has been used to promote continuous improvements, such as work teams, quality circles and suggestion systems. Each of these methods utilises workers who are directly involved in the production process as a primary source for improvement ideas. Some experts, however, believe that separate improvement teams should be used to initiate and guide improvement projects. [ Total Quality Management Principles ] Companies should work with their suppliers and extend TQM programs to them to ensure quality inputs— For many manufacturing companies, purchased components and materials account for over 50% of their production costs. Similarly, over 80% of the costs are the costs of goods intended for resale. If suppliers are providing low-quality components, materials, or goods, the purchasing company will find it impossible to achieve a high level of quality in goods and services it produces. In fact, many companies now require suppliers to have quality management programs certified by customers or by a recognised certification organisation, such as the International Organization for Standardization (ISO). [ Total Quality Management Principles ]