TOTAL QUALITY MANAGEMENT

Deming's influence on Japanese industries is particularly significant. After World War II, he was
invited to Japan to help with the Japanese Census, and he ended up teaching statistical methods
and quality improvement techniques to Japanese engineers and managers. This was a pivotal
moment in the development of Japanese industry, as it set the stage for their reputation for
producing high-quality products.
Deming introduced the concept of the "Plan-Do-Check-Act" (PDCA) cycle, is a systematic
framework for achieving continuous improvement in various processes and systems. The Plan-
Do-Check-Act (PDCA) cycle, often referred to as the Deming Cycle, PDCA consists of four key
stages: Plan, Do, Check, and Act. In the "Plan" phase, objectives and strategies are established,
and a plan for implementation is created. In the "Do" phase, the plan is put into action. The
"Check" phase involves monitoring and measuring the outcomes and comparing them to the
initial goals and expectations. Finally, in the "Act" phase, necessary adjustments and
improvements are made based on the evaluation, and the cycle begins anew. This iterative
approach enables organizations to continually refine and enhance their processes, with a
particular emphasis on quality. Japanese management has embraced PDCA as a fundamental tool
for driving efficiency and excellence in a wide range of industries, making it a cornerstone of
their commitment to continuous improvement.

What is TQM?
Total Quality Management (TQM) is a comprehensive approach to quality control and
management that focuses on achieving the highest possible level of quality in all aspects of an
organization's operations. TQM is not limited to a specific industry or department; it can be
applied to manufacturing, service, healthcare, education, and virtually any other sector. The core
principles of TQM are centered on the commitment to quality and the involvement of all
employees in the quality improvement process.

Advantages of TQM
1. When faults and problems are spotted and sorted quickly within an organization, it has several
significant benefits. First and foremost, this swift identification and resolution of issues help
maintain product and service quality at a high standard. By catching defects early in the process,
organizations can prevent them from escalating into larger, more costly problems, thereby
reducing the risk of customer complaints and product recalls. This rapid problem-solving also
enhances operational efficiency, as it minimizes disruptions and delays in production.
Furthermore, addressing issues promptly fosters a culture of continuous improvement,
encouraging employees to be vigilant and proactive in identifying and rectifying problems.
Ultimately, this approach leads to higher customer satisfaction, improved employee morale, and
a competitive advantage in the market, as customers are more likely to choose a company known
for its quality and reliability.
2. Higher employee morale is a direct result of the Total Quality Management (TQM) approach
that emphasizes worker motivation through extra responsibility, teamwork, and involvement in
decision-making processes. When employees are entrusted with added responsibilities and are
actively engaged in problem-solving and quality improvement initiatives, they feel a stronger
sense of ownership and pride in their work. This can lead to increased job satisfaction and
morale as they recognize the value of their contributions. Teamwork, another integral aspect of
TQM, fosters collaboration among colleagues, encouraging mutual support and camaraderie.
Employees who feel part of a cohesive team are more likely to be motivated and satisfied with
their work environment. Furthermore, involving employees in decision-making processes
empowers them, making them feel that their opinions and expertise are valued, which, in turn,
boosts morale. In essence, TQM not only enhances product quality but also positively impacts
the well-being and motivation of the workforce, resulting in a more engaged and productive
team.

3. Lower costs are a significant advantage of Total Quality Management (TQM). TQM's
emphasis on process improvement, waste reduction, and the elimination of defects and errors
directly translates into cost savings for organizations. By continually monitoring and enhancing
their operations, companies can reduce the expenses associated with rework, scrap, warranty
claims, and customer complaints. Moreover, TQM encourages a proactive approach to quality,
which means that issues are identified and resolved at an early stage, preventing costly problems
from occurring later in the production or service delivery process. Standardized processes and
the use of data-driven decision-making also contribute to cost reduction by minimizing variations
and inefficiencies. Overall, TQM helps organizations operate more efficiently, thereby
decreasing operational costs and enhancing their competitive position in the market, while
simultaneously ensuring a higher level of customer satisfaction and loyalty.

4. Decreasing waste is a fundamental advantage of Total Quality Management (TQM). TQM's

focus on producing products and services with fewer defects and errors significantly reduces the
amount of waste generated in the production process. When products are manufactured or
services are provided with a high level of quality, there's no need for the extensive rework or
disposal of faulty items, which often contributes to waste. TQM also promotes the concept of
"getting it right the first time," meaning that there's less need to go back and correct mistakes,
further minimizing waste. This efficient approach eliminates not only physical waste but also the
waste of resources, such as time and materials. It ensures that products and services are delivered
in a more streamlined, cost-effective manner, benefitting both the organization's bottom line and
the environment by reducing the consumption of resources and the disposal of defective
products. In essence, TQM's commitment to minimizing waste is a win-win, contributing to
improved financial performance while also promoting sustainability and environmental
responsibility.

Dis-advantages of TQM
1. One of the disadvantages of Total Quality Management (TQM) is the initial introduction cost.
Implementing TQM can require a significant investment of time, money, and resources.
Organizations must allocate funds for employee training, process improvements, data collection,
quality control systems, and sometimes even hiring external consultants. These upfront costs can
be burdensome, particularly for smaller companies with limited budgets. Moreover, the time and
effort needed to establish TQM principles and practices across an organization can disrupt
regular operations and may lead to a temporary reduction in productivity. However, it's
important to note that while the initial implementation can be costly and disruptive, the long-
term benefits in terms of improved quality, customer satisfaction, and cost savings often
outweigh these drawbacks. It's a strategic decision that organizations need to weigh against the
potential advantages and consider as an investment in their future success.

2. A notable disadvantage of Total Quality Management (TQM) is that the benefits may not be
realized for several years after its implementation. TQM is a long-term, holistic approach to
quality improvement, and its impact often becomes more evident over time. This delayed
gratification can be challenging for organizations looking for quick and immediate results. In
some cases, the initial investment in TQM may take years to yield substantial returns in terms of
increased customer satisfaction, improved product quality, and cost savings. This can test an
organization's commitment to the TQM process, as it requires persistence, ongoing effort, and a
dedication to continuous improvement. Furthermore, changes in the market, competition, or
other external factors can affect the rate at which TQM benefits become visible. While TQM can
be highly effective, organizations must be patient and realistic about the timeline for realizing its
advantages and recognize that the process is more about sustainable long-term success than
immediate gains.

3. Worker resistance to change is a common disadvantage when implementing Total Quality

Management (TQM). Introducing TQM often requires a shift in organizational culture and work
practices, which can be met with resistance from employees who are comfortable with the
existing way of doing things. Workers may fear that TQM will disrupt their routines, create
uncertainty, or even lead to job insecurity. Overcoming this resistance necessitates effective
communication, training, and change management strategies. It's essential for management to
involve employees in the process, listen to their concerns, and provide reassurance regarding job
stability and the benefits of TQM for everyone involved. Successfully managing this resistance is
crucial because employee buy-in is a key element in TQM's success. Without the support and
engagement of the workforce, the full potential of TQM cannot be realized, making it essential
for organizations to navigate and address this challenge effectively.

BENEFITS

1. Total Quality Management (TQM) offers a multitude of benefits to organizations that embrace
its principles. First and foremost, TQM places a relentless focus on improving product and
service quality, resulting in fewer defects and errors. This not only enhances customer
satisfaction and loyalty but also reduces the cost of poor quality, including rework, warranty
claims, and customer complaints. TQM promotes efficiency by streamlining processes and
eliminating waste, leading to significant cost savings. Moreover, it encourages a culture of
continuous improvement, fostering innovation and adaptability in response to changing market
demands. Employee morale is boosted through increased involvement, responsibility, and
teamwork, creating a motivated and engaged workforce. The emphasis on data-driven decision-
making enhances organizational transparency and helps meet regulatory requirements. Overall,
TQM provides a strategic framework for organizations to deliver high-quality products and
services, maintain a competitive edge, and achieve long-term sustainability.
PRINCIPLES
Customer Focused - Total Quality Management (TQM) is a comprehensive approach to quality
enhancement that commences with an unyielding dedication to comprehending and fulfilling
customer needs and expectations. Organizations that embrace TQM principles place customers at
the forefront of their quality improvement initiatives, recognizing that satisfied customers are the
lifeblood of sustained prosperity. By proactively engaging with customers, gathering feedback,
and using that information to continuously refine products and services, TQM fosters an
environment of customer-centricity. This approach not only ensures the delivery of high-quality
goods and services but also cultivates customer loyalty and trust, which are vital for long-term
success and maintaining a competitive edge in today's business landscape.

Employee involvement - Total Quality Management (TQM) underscores the profound

significance of employees as a precious resource in the pursuit of quality excellence. It
champions the involvement of all personnel, regardless of their position within the organization,
in the quality improvement journey. TQM acknowledges that employees are not mere laborers
but rather integral contributors to the enhancement of processes and the identification of quality-
related challenges. By empowering and engaging all staff members, TQM taps into their
collective knowledge and insights, fostering a culture of continuous improvement. This approach
not only harnesses the expertise and creativity of employees but also fosters a sense of ownership
and commitment to quality, ultimately leading to better products, services, and overall
organizational performance.

Process centered approach - Total Quality Management (TQM) perceives quality as a product of
well-executed processes. It places a strong emphasis on scrutinizing and enhancing these
processes to eradicate defects and errors, with the ultimate goal of reducing waste and variability
in all aspects of an organization's operations. TQM promotes a systematic approach to process
improvement, involving continuous monitoring, measurement, and adjustment, to ensure that
products or services consistently meet or exceed customer expectations. By systematically
focusing on the efficiency and effectiveness of processes, TQM not only enhances product
quality but also leads to cost reduction and improved overall performance, making it a valuable
framework for sustainable success in the business world.

Integrated approach - TQM recognizes that it is not just the individual departments that matter,
but how they collaborate and work seamlessly across boundaries to deliver a unified product or
service. It promotes collaboration, communication, and process improvement to ensure that the
end result is a seamless, high-quality experience for the customer.

Strategic and Systematic approach - Central to effective quality management is the strategic and
systematic approach in aligning an organization's operations with its broader vision, mission, and
objectives. It involves the formulation of a strategic plan that intricately weaves quality into its
core. By integrating quality as a fundamental component of this strategic planning process, an
organization ensures that the pursuit of quality becomes not just a standalone goal but an integral
part of its overarching strategy. This alignment empowers the organization to proactively address
quality concerns, drive continuous improvement, and ultimately realize its vision while meeting
the expectations and needs of its customers.

Decision making based on facts - By continuously collecting and analyzing data, organizations
can identify trends, areas of improvement, and potential issues, enabling them to make informed
choices and adapt swiftly. Moreover, this data-driven approach fosters consensus among
stakeholders, as it relies on objective information rather than subjective opinions. It also
empowers organizations to make predictions based on historical data, thus proactively addressing
potential challenges and ensuring a more efficient and reliable path toward achieving quality and
organizational excellence.
Communication Communication encompasses a range of elements, including well-thought-out
strategies, appropriate methods, and timely delivery. In times of change, clear and transparent
communication helps employees understand the reasons behind changes, reduces uncertainty,
and fosters trust. In daily operations, it ensures that everyone is on the same page, aligned with
the organization's goals, and engaged in their work. The method of communication, whether
through meetings, memos, or digital channels, should be chosen thoughtfully, taking into
consideration the message and the audience. Timeliness is equally crucial, as timely
communication can prevent misunderstandings and facilitate swift responses to challenges. In
sum, effective communication is a cornerstone of organizational success, providing the
foundation for collaboration, engagement, and adaptability.

Continuous improvement - Total Quality Management (TQM) is the relentless pursuit of

continual process improvement. This principle compels organizations to maintain a dual focus on
being both analytical and creative in their approach to enhancing operations. It involves a
systematic and ongoing effort to scrutinize existing processes, identify inefficiencies, and make
data-driven refinements. Simultaneously, it encourages a culture of innovation and creative
problem-solving, where employees actively seek novel ways to become more competitive and
better meet the expectations of stakeholders. This amalgamation of analytical rigor and creative
thinking empowers organizations to adapt to changing market dynamics, stay at the forefront of
their industry, and consistently deliver higher-quality products and services, ultimately ensuring
long-term success and customer satisfaction.

JUST IN TIME INVENTORY

The history of Just-In-Time (JIT) inventory, closely associated with Japanese management
practices, is a testament to the innovative and efficient approach developed in post-World War II
Japan. JIT originated with Toyota Motor Corporation and is often referred to as the "Toyota
Production System." After the war, Japan faced resource constraints, making traditional
inventory management methods impractical. Toyota's response was to create a system where
inventory was kept to a minimum, and items were ordered or produced only when needed,
reducing waste and cost.

Taiichi Ohno, a Toyota engineer, is often credited with formalizing JIT principles in the 1950s
and 1960s. He introduced concepts like "Kanban" cards to signal production needs and the
elimination of overproduction. JIT principles extended beyond manufacturing to involve every
aspect of the company, from supply chains to production lines and even human resources.

JIT revolutionized not only manufacturing but also management practices worldwide. It
promoted a culture of continuous improvement (kaizen), increased efficiency, and minimized
waste. As a result, Japanese companies, led by Toyota, gained a reputation for their high-quality,
low-cost products. JIT and related practices have since become fundamental elements of modern
lean management and are widely adopted by companies globally to enhance their operational
efficiency and competitiveness. The history of JIT exemplifies how innovative management
practices can emerge from necessity and ultimately transform industries and business practices
on a global scale.

*Just-In-Time (JIT) is a streamlined system for inventory management that revolutionizes the
traditional approach of stockpiling materials and components. In JIT, items are procured and
delivered precisely as they are required for the production process, eliminating the need for
excess stockpiles and storage. This approach offers several advantages, as it significantly reduces
waste, minimizes carrying costs associated with excess inventory, and enhances overall
operational efficiency. By closely aligning the procurement of materials with production
demands, JIT optimizes the allocation of resources, minimizes the risk of overstock or
obsolescence, and fosters a more agile and responsive production environment. This lean
inventory strategy has become a cornerstone of modern supply chain management, as it
empowers organizations to operate more cost-effectively while maintaining the flexibility to
adapt to changing market conditions.
* The fundamental objective of Just-In-Time (JIT) inventory management is to ensure that the
precise materials, components, or finished products arrive at the production or assembly line
precisely when they are needed and in the exact quantities necessary, with no surplus or safety
stock. This approach hinges on a finely-tuned synchronization of supply and demand, striving to
eliminate the inefficiencies associated with excess inventory. By adhering to JIT principles,
businesses can reduce carrying costs, minimize waste, and streamline their operations, thereby
enhancing their overall efficiency and profitability. JIT enables companies to respond swiftly to
changes in customer demand and market dynamics while maintaining lean, cost-effective
inventory practices, which makes it a pivotal strategy in the quest for operational excellence.
JIT FUNCTIONS
1. Zero inventory is a critical component of Just-In-Time (JIT) inventory management. In JIT,
the ultimate goal is to have zero or as close to zero inventory as possible. This means having just
enough materials, components, or finished products on hand to meet immediate production
needs. Zero inventory is achieved by coordinating the procurement and production processes so
that items arrive precisely when they are needed, in the exact quantities required, and no earlier.
There is no surplus or safety stock kept in reserve. This approach has several benefits, including
minimizing carrying costs, reducing the risk of waste or obsolescence, and improving cash flow
by not tying up resources in excess inventory. However, it also requires a high level of precision
in supply chain management, as any disruptions or delays can quickly impact production. Zero
inventory is the embodiment of JIT's efficiency and waste reduction principles, striving for a
lean, agile, and responsive production system.
2. Zero lead time is a crucial concept in Just-In-Time (JIT) manufacturing and inventory
management. It refers to the goal of completely eliminating or minimizing the time it takes for
materials or components to move from the supplier to the production process. In a JIT system,
the aim is to have materials arrive precisely when they are needed, and with zero lead time, there
is no waiting period between the initiation of the order and its delivery. Achieving zero lead time
is typically done by establishing close relationships with reliable suppliers, implementing
efficient ordering and delivery systems, and optimizing logistics and transportation processes.
Zero lead time is essential because it allows for greater responsiveness to changes in customer
demand and minimizes the need for holding excess inventory. This, in turn, reduces carrying
costs and waste while increasing production efficiency and overall competitiveness. However, it
requires meticulous coordination and reliability in the supply chain to function effectively.

3. Zero failure is a core principle in Just-In-Time (JIT) manufacturing and quality management.
It emphasizes the goal of achieving flawless and defect-free processes throughout the production
and supply chain. In JIT, zero failure means that all components, materials, and products meet
strict quality standards and specifications, leaving no room for defects or errors. This principle
aligns with the broader philosophy of "getting it right the first time" and places a strong emphasis
on prevention rather than detection and correction of defects. Zero failure is critical in JIT
because even minor defects can disrupt the production process, lead to excess waste, and cause
delays, which are antithetical to the JIT's goal of efficiency and waste reduction. Achieving zero
failure typically involves implementing rigorous quality control measures, continuous
improvement practices, employee training, and close cooperation with suppliers to ensure that
only high-quality inputs enter the production system. This commitment to zero failure is vital for
JIT's success in achieving lean and highly efficient manufacturing processes.

Just-In-Time (JIT) philosophy aims to minimize waste in production processes. There are
commonly recognized eight types of waste, often referred to as the "8 Wastes of Lean"
Discuss/read eight types of wastes

Application of JIT

Fast food chain - For instance, a popular fast-food chain in the Philippines like Jollibee utilizes
JIT to minimize food waste and control inventory costs. By closely monitoring customer demand
patterns and using technology for real-time inventory tracking, they can adjust food orders,
preparation, and cooking to match customer orders more accurately. This reduces food spoilage,
minimizes storage requirements, and allows for a faster turnaround time.

Automotive Manufacturing - They implement JIT principles to ensure that the right quantity of
parts and components arrives precisely when needed to assemble vehicles. This minimizes
inventory costs, reduces storage space requirements, and allows for more flexible and responsive
production. In addition to the major manufacturers, many suppliers and component
manufacturers in the automotive supply chain in the Philippines also follow JIT practices to meet
the stringent requirements of these companies efficiently.

"Quality is not an act, it is a habit." - Aristotle

This quote by Aristotle emphasizes the idea that quality is not a one-time action but a continuous
habit. It relates to Total Quality Management (TQM), which is all about ingraining a
commitment to quality in an organization's culture and practices.

For Just-in-Time (JIT) Inventory, you can consider the following quote:

"Time is the scarcest resource, and unless it is managed, nothing else can be managed." - Peter
Drucker

This quote by Peter Drucker underscores the essence of Just-in-Time Inventory, which is all
about optimizing the use of time and resources by reducing inventory levels and ensuring that
materials arrive just when they are needed for production.
explain in paragraph "Quality is not an act, it is a habit."
ChatGPT
The quote "Quality is not an act, it is a habit" by Aristotle encapsulates the fundamental
philosophy behind the concept of Total Quality Management (TQM). It conveys the idea that
achieving and maintaining high-quality standards is not something that can be accomplished
through sporadic or occasional efforts. Rather, it should become an ingrained habit, a way of life
within an organization. This perspective emphasizes that quality is not merely the result of
isolated actions or initiatives; instead, it is an enduring commitment to excellence that permeates
every aspect of an organization's culture and operations. To excel in quality, individuals and
teams must consistently and consciously practice quality in their work, decisions, and
interactions. TQM is built on the belief that when quality becomes a habit, it leads to a culture of
continuous improvement, where every member of the organization strives for excellence as a
matter of routine, ultimately delivering superior products and services to customers and
stakeholders.

The quote "Time is the scarcest resource, and unless it is managed, nothing else can be managed"
by Peter Drucker underscores the paramount importance of effective time management in all
aspects of life and work. It conveys the idea that time is an invaluable and finite resource, and its
optimal utilization is the linchpin for success in any endeavor. Without judicious time
management, even the most well-thought-out plans, the best of intentions, and the most abundant
resources can falter. It serves as a reminder that time, once lost, cannot be recovered, and thus, it
should be prioritized and managed diligently. Whether in business, education, or personal life,
the ability to allocate time efficiently, set priorities, and make the most of available hours is
crucial for achieving goals, increasing productivity, and maintaining a balanced and fulfilling
life. In essence, effective time management is the foundation upon which the management of all
other resources, tasks, and responsibilities depends.