THE THREE BASIC ELEMENTS OF TQM

Quality First

Although one must recognize that quantity (the number of products produced or customers served) runs a close second, under TQM quality is pushed up front because management understands that higher quality puts a firm in a better position to compete domestically and internationally.

Mrs. Kelly decided to open a small delicatessen in her hometown that would compete head-to-head with one that had been in operation for more than twenty years and had an excellent reputation. Was there room for two delicatessens in the same town? Most observers said she would last less than a year. But Mrs. Kelly adopted a new paradigm, the Total Quality Management (TQM) approach. She purchased the highest quality food and other supplies; she took more time in the preparation of all items on her menu; she (and her part-time help) gave better service. She focused her attention on customer needs and satisfaction, even to the point of free delivery at home when one of her customers was ill. Result? In two years her operation was thriving. Mrs. Kelly's higher quality standards gave her a competitive advantage.

Start with the Customer

In the past, many organizations—large and small—confined their quality efforts to the production of the best possible line of products. Quality control was an inside effort. Under TQM, quality control starts and ends with the customer or client. The strategy is basic: Make customers happier with your product or service and they will pass up your competitors and stand in line at your front door. Even if they must wait, they prefer your service and product.

Against the advice of his friends, Hank bought the equipment and started a swimming pool maintenance service. His strategy was to make customers happier with his service even though he would use the same equipment and chemicals as his competitors. How did Hank accomplish his goal? If he heard one of his clients was going to have a “pool party,” he would provide an extra cleaning before the party without notification or extra charge. He took time to listen to client problems even if they had nothing to do with his service. He continually checked and serviced all the pool heating and cleaning equipment to avoid surprise breakdowns. Hank took the attitude that the customer always came first, and he took that extra step his competitors failed to take. How have things turned out? Hank now has three service trucks in operation and is the leading pool service firm in his community.

Employee Accountability

Under TQM everyone is accountable for their actions. Accountability means more frequent performance reviews, closer follow-up should a customer be unhappy, and almost zero tolerance when an imperfect product is placed prematurely in the hands of a client. In short, everyone must do their job and accept personal responsibility for doing it right. Employees who do not live up to quality standards are retrained, reassigned, or advised to seek a different kind of job.

When Sylvia was hired and trained to do high-precision work in a high-tech factory she was amazed to discover that she would go through a weekly performance review for the first two months and a monthly review thereafter. The next thing she discovered was that quality standards had permeated the entire organization and that her successful co-workers took great pride in the part they played in turning out the best possible product. After surviving her probation period, her supervisor said: “Sylvia, we are pleased to have you aboard. We are also pleased that your productivity is above average without sacrificing quality. I consider you to be a quality employee working for a quality outfit. Although our standards are high and there is always some pressure involved, you will discover that there is a lot of job satisfaction working here and there are times when we relax and have a lot of fun.”

The swing to quality while maintaining high quantity levels is the number one story in the world of business today. This change is primarily responsible for the success America is winning in foreign markets.