TOTAL QUALITY MANAGEMENT

FOR
Micro Small & Medium Enterprises
(MSMEs)
Ndung’u Ndegwa
Consultant, Business Development Services
Email: ndegwadn@[Link]
Duration: 3 hours
Date: 25/10/2023
 Session Outline
✓ What is Quality
✓ Evolution of TQM
✓ Principles of TQM
✓ Implementing TQM in MSMEs
✓ TQM Cycle
✓ Benefits of TQM to MSMEs
✓ Limitations of TQM
✓ Future of TQM
✓ Take home

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 What is Quality?
Quality refers to the
▪ degree of excellence or
▪ superiority of a product, service, process, or outcome
in relation to customer expectations

“Just like beauty lies in the eye of the beholder, Quality lies in the eye
of the customer!”

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 Quality and Utility

Time
utility

Quality

Form Place
utility utility

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 Dimensions of Quality
▪ Fitness for Purpose ▪ Safety
▪ Conformance to ▪ Cost-effectiveness
Specifications ▪ Innovation
▪ Customer Satisfaction ▪ Consistency
▪ Reliability ▪ Environmental impact
▪ Durability ▪ Ethical considerations
▪ Performance

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 Total Quality Management
❑ TQM is a comprehensive management philosophy and approach that
focuses on
o improving the quality of products, services, and
o Improving processes
within an organization
❑ It involves the participation of all employees, from top-level
management to front-line workers, in a continuous effort to enhance
quality, efficiency, and customer satisfaction
❑ It was championed by American gurus W. Edwards Deming
(management scholar) and Joseph M. Juran (Engineer)

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 TQM Evolution
❑ Early Quality Pioneers (Early 20th Century):
▪ The foundations of quality management were laid by pioneers like Henry Ford, who
standardized processes to achieve higher quality and productivity.
❑ Quality Control during World War II (1940s):
▪ During World War II, quality control practices became crucial for manufacturing
items like weapons, equipment, and supplies.
▪ Statistical quality control methods, developed by W. Edwards Deming and Joseph
Juran, were widely used to ensure consistent and reliable production.
❑ Post-War Japanese Influence (1950s - 1960s):
▪ After World War II, the Japanese manufacturing industry invited American gurus W.
Edwards Deming and Joseph M. Juran to rebuild and improve its processes through
TQM principles.
▪ Japanese companies embraced these teachings and integrated them into their
manufacturing practices.
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❑ Introduction of Total Quality Management (1970s - 1980s):
▪ The term "Total Quality Management" was coined in the 1970s as a holistic approach
that emphasized involving all employees in the pursuit of quality.
❑ Deming's Influence (1980s):
▪ W. Edwards Deming's 14 Points for Management and his System of Profound
Knowledge gained prominence as a comprehensive framework for quality
improvement.
▪ His ideas on statistical process control and management principles continued to
shape the evolution of TQM.
❑ ISO 9000 Standards (1987):
▪ The International Organization for Standardization (ISO) introduced the ISO 9000
series of standards, which provided guidelines for establishing quality management
systems.
▪ These standards emphasized documentation, quality assurance, and customer
satisfaction.
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❑ Further Development and Adoption (1990s - 2000s):
▪ TQM continued to evolve with the integration of concepts like
✓ continuous improvement
✓ customer focus
✓ employee involvement
✓ data-driven decision-making
▪ Companies around the world embraced TQM as a strategic approach for improving
quality, reducing waste, and enhancing customer satisfaction.
❑ Integration of Lean Six Sigma (2000s - Present):
▪ Organizations started using frameworks like Lean Six Sigma to combine the principles
of TQM with statistical tools for process optimization.

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 Deming’s 14 Points for Management
1. Create a constant purpose toward improvement. Plan for quality in the long
term
2. Adopt the new philosophy- commitment to quality and continuous
improvement
3. Stop depending on mass inspections - Prevention is better than detection
4. End the practice of awarding business on the basis of price tag alone; establish
long-term relationships with suppliers who provide high-quality materials and
services
5. Improve constantly and forever
6. Use training on the job to develop workforce
7. Adopt and institute leadership to create a culture of quality and continuous
improvement

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8. Eliminate fear - Create an environment where employees feel safe to express
their ideas
9. Break down barriers between departments; Silos can hinder the flow of
information and quality improvement
10. Get rid of unclear slogans, exhortations, and targets for the workforce
11. Eliminate numerical arbitrary production targets that can compromise quality
12. Remove barriers to pride of workmanship
13. Implement vigorous education and self-improvement programs
14. Make transformation everyone’s job

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 8 Key principles of TQM
1. Customer Focus: Meeting and exceeding customer expectations is a primary
goal
2. Continuous Improvement: ongoing improvement in all aspects of an
organization
3. Employee Involvement: encourages the active participation and involvement of
all employees
4. Process-Centered Approach: emphasizes the importance of well-defined and
standardized processes
5. Data-Driven Decision Making: relies on data and metrics to measure
performance and make informed decisions
6. Leadership Commitment: requires strong commitment and leadership from top
management
7. Supplier Relationships: strong relationships with suppliers helps ensure the
quality of incoming materials
8. Preventing Defects: TQM aims to prevent defects from happening in the first
place by addressing root causes

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 How to Implement TQM to SMEs
1. Leadership Commitment:
▪ Top management should demonstrate a strong commitment to TQM and lead by example.
▪ Emphasize the importance of quality and customer satisfaction as core values.
2. Awareness and Training:
▪ Ensure that all employees understand the basics of TQM and its benefits.
▪ Provide training sessions to familiarize employees with TQM concepts, tools, and
methodologies.
3. Define Quality Objectives:
▪ Identify specific quality objectives that align with the organization's mission and customer
expectations.
▪ Set achievable goals for improving product/service quality and customer satisfaction.
4. Customer Focus:
▪ Understand customer needs, preferences, and expectations.
▪ Gather customer feedback through surveys, reviews, and direct interactions.

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5. Process Analysis and Improvement:
▪ Identify key processes that impact product/service quality.
▪ Analyze these processes to identify bottlenecks, inefficiencies, and areas for
improvement.
6. Employee Involvement:
▪ Encourage all employees to participate in quality improvement initiatives.
▪ Empower employees to suggest ideas for process improvement and innovation.
7. Data Collection and Analysis:
▪ Establish a system for collecting relevant data and performance metrics.
▪ Use simple statistical tools to analyze data and identify trends.
8. Problem Solving:
▪ Implement problem-solving methodologies like PDCA (Plan-Do-Check-Act) or DMAIC
(Define-Measure-Analyze-Improve-Control).
▪ Encourage employees to work together to identify and address root causes of issues.

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9. Continuous Improvement:
▪ Foster a culture of continuous improvement by celebrating small wins and
recognizing employees' contributions.
▪ Regularly review and refine processes to enhance efficiency and quality.
10. Supplier Relationships:
▪ Collaborate closely with suppliers to ensure the quality of raw materials and
components.
▪ Communicate quality expectations and establish clear standards.
11. Documentation and Standardization:
▪ Document processes, procedures, and best practices to ensure consistency.
▪ Standardize processes where applicable to minimize variability.
12. Communication:
▪ Establish clear communication channels to share quality-related information.
▪ Encourage open dialogue among employees and management.

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13. Training and Development:
▪ Provide ongoing training to enhance employees' skills and knowledge.
▪ Invest in developing a skilled workforce that can contribute to quality improvement.
14. Recognition and Rewards:
▪ Recognize and reward individuals and teams for their contributions to quality
improvement.
▪ Reinforce the importance of TQM principles through incentives.
15. Regular Review and Adjustment:
▪ Regularly review progress toward quality objectives and adjust strategies as needed.
▪ Adapt TQM initiatives to changing business conditions and customer feedback.

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 TQM Cycle – PDCA (Deming’s Cycle)
1. Plan:
▪ In this stage, the organization identifies a problem, an opportunity for
improvement, or a goal.
▪ Goals and objectives are set, and plans for addressing the issue are developed.
▪ Strategies, resources, and processes required to achieve the objectives are
defined.
▪ This stage emphasizes careful planning and analysis before implementing changes.
2. Do:
▪ During the "Do" stage, the planned changes or improvements are put into action.
▪ The new processes, strategies, or interventions are implemented as per the plan.
▪ Data is collected during the implementation to monitor how well the changes are
being executed.
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3. Check:
▪ In this stage, the organization evaluates and assesses the results of the implemented
changes.
▪ Data collected during the "Do" stage is analyzed to determine whether the goals and
objectives have been met.
▪ The actual performance is compared with the expected outcomes to identify any
deviations.
4. Act:
▪ Based on the results of the evaluation in the "Check" stage, appropriate actions are taken.
▪ If the results meet the objectives, the organization standardizes and implements the
changes further.
▪ If the results do not meet the objectives, the organization analyzes the causes of the
deviation and makes adjustments or refinements to the plan.
▪ Lessons learned from the entire cycle are documented and used to improve future planning
and implementation.
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 Benefits of TQM to SMEs
1. Enhanced Product/Service Quality:
▪ TQM focuses on improving the quality of products and services, which can
lead to reduced defects and errors.
▪ Consistent quality can help build a positive reputation and attract loyal
customers.
2. Increased Customer Satisfaction:
▪ TQM emphasizes understanding and meeting customer needs and
expectations.
▪ Satisfied customers are more likely to return and recommend the business to
others.
3. Efficiency and Cost Reduction:
▪ Streamlining processes and reducing waste lead to improved efficiency.
▪ Efficient processes reduce operational costs and increase profitability.

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4. Higher Employee Engagement:
▪ Involving employees in quality improvement initiatives fosters a sense of
ownership and engagement.
▪ Employees become more motivated and empowered to contribute to the
success of the business.
5. Innovation and Problem Solving:
▪ TQM encourages a culture of continuous improvement and innovation.
▪ Employees are more likely to identify and address problems creatively,
leading to innovative solutions.
6. Better Decision Making:
▪ Data-driven decision-making is a core aspect of TQM.
▪ Access to accurate data helps management make informed choices that
positively impact the business.

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7. Competitive Advantage:
▪ Consistent quality and customer satisfaction give small enterprises a
competitive edge.
▪ The business stands out in the market, attracting more customers and
opportunities.
8. Supplier Relationships:
▪ Effective collaboration with suppliers can lead to a reliable supply chain.
▪ High-quality inputs from suppliers contribute to the overall quality of the end
product.
9. Risk Reduction:
▪ By identifying and addressing potential issues early, TQM helps minimize risks.
▪ Business disruptions and customer complaints are reduced, leading to more
stability.
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10. Brand Reputation:
▪ A commitment to quality and customer satisfaction enhances the
brand's reputation.
▪ A positive reputation can lead to increased trust and credibility among
customers and partners.
11. Employee Development:
▪ TQM often involves training and skill development for employees.
▪ This leads to a more skilled workforce that can contribute to both
quality improvement and personal growth.
12. Adaptability to Change:
▪ TQM principles promote a culture of flexibility and adaptability.
▪ The business becomes better equipped to respond to changes in the
market and industry.

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13. Long-Term Growth:
▪ The benefits of TQM contribute to sustained business growth over
the long term.
▪ Improved quality and customer satisfaction lead to increased
customer retention and business expansion.
14. Regulatory Compliance:
▪ TQM practices can help small businesses meet industry regulations
and standards
▪ Compliance with regulations is essential for avoiding legal issues
and maintaining trust

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 Limitations of TQM
❑ Time and Resource Intensive: Implementing TQM involves training
employees, restructuring processes, and collecting and analyzing
data. This can be a challenge for organizations with limited
resources.
❑ Resistance to Change: Employees and managers may resist changes
associated with TQM, especially if they are accustomed to existing
processes.
❑ Cultural Compatibility: TQM principles may not be easily applicable
to all organizational cultures. Some cultures might prioritize
hierarchy, top-down decision-making.
❑ Complexity: The comprehensive nature of TQM can make it complex
to implement, especially in larger organizations.
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❑ Lack of Quick Results: TQM is a long-term approach to
improvement, and results may not be immediately visible.
❑ Overemphasis on Process: In some cases, organizations might
become overly focused on processes and metrics, potentially losing
sight of customer needs and market changes.
❑ Dependence on Employee Involvement: TQM relies heavily on
employee engagement, participation, and empowerment.
❑ Measurement Challenges: Measuring the success and impact of
TQM initiatives can be challenging - external factors can also play a
role.

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❑ Adaptability to Rapid Changes: TQM might face difficulties in
adapting to rapidly changing business environments.
❑ Applicability to Certain Sectors: While TQM principles can be
applied across various sectors, they might not be equally effective in
all of them.
❑ Potential Bureaucracy: In some cases, the formalization and
documentation required by TQM processes could lead to
bureaucratic tendencies.

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 Future of TQM
❑ Integration with Technology: TQM will increasingly be integrated with
advanced technologies such as artificial intelligence, machine learning, and
data analytics.
❑ Customer-Centric Focus: With the rise of social media and instant feedback
mechanisms, TQM will be even more critical for maintaining a positive
reputation.
❑ Sustainability and Environmental Responsibility: TQM will expand to include
a stronger emphasis on sustainability and environmental responsibility.
❑ Agile and Lean Principles: TQM will incorporate agile and lean methodologies,
which emphasize adaptability, flexibility, and waste reduction.
❑ Employee Empowerment and Well-being: TQM will place a greater emphasis
on employee empowerment and well-being. Engaged and motivated
employees are more likely to contribute to quality improvement efforts.
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❑ Supply Chain Quality: As supply chains become increasingly complex and
global, TQM will ensure the quality of inputs and materials is crucial for
delivering consistent product quality.
❑ Risk Management and Resilience: TQM will help identify and mitigate
risks to quality, especially in uncertain or disruptive environments, such as
during global crises like the COVID-19 pandemic.
❑ Regulatory Compliance: TQM will remain a framework for ensuring
compliance with quality standards and regulations.
❑ Customization and Personalization: TQM will provide tools to the
increasing demand for customized and personalized products and
services.
❑ Global Collaboration and Standards: TQM will involve more international
collaboration and standardization efforts to ensure consistent quality
practices and standards across borders.

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 Take Home
✓ Investment on enhanced product/service quality impacts positively
on business success
✓ TQM emphasizes continuous improvement; so it is applicable to
micro & small enterprises too
✓ TQM is about “Doing it right the first time, and all the time”
✓ “Just like beauty lies in the eye of the beholder, Quality lies in the eye
of the customer”
✓ It can be done, start where you are!

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