Quality management is the act of overseeing all activities and tasks that must be accomplished to maintain a desired level of excellence. This includes the determination of a quality policy, creating and implementing quality planning and assurance, and quality control and improvement processes.
In general, quality management focuses on long-term goals through the implementation of short-term initiatives.
Key Takeaways
- Quality management oversees all activities and tasks required to maintain a desired level of excellence.
- It encompasses the establishment of a quality policy, creating and implementing quality planning and assurance, and quality control and improvement.
- TQM necessitates collaboration among all stakeholders in a business to enhance processes, products, services, and corporate culture.
Understanding Quality Management
At its core, TQM is a business philosophy that champions the idea that the long-term success of a company comes from customer satisfaction and loyalty. TQM requires all stakeholders within a business to work collectively to improve processes, products, services, and the culture of the company itself.
Although TQM may seem intuitive, it emerged as a groundbreaking concept. During the 1920s, the business world began to rely on statistical theories and methodologies, leading to the creation of the first-ever control chart in 1924. By the 1950s, the method of Statistical Process Control (SPC) began to be effectively implemented in business settings.
In the mid-20th century, Japan faced significant industrial challenges, such as a low literacy rate and poor product quality. Key businesses in Japan decided to implement quality management and quality control systems based on statistical thinking, pioneered by companies such as Toyota.
By the end of the 1960s, Japan transformed its economic narrative, becoming known for its efficient production and high-quality exports. Effective quality management resulted in superior products produced at lower costs.
Inspirational Real-World Example of Quality Management
One of the most renowned examples of TQM implementation is Toyota’s Kanban system. Kanban, a physical signal that triggers specific actions, was initially used by Toyota to streamline its just-in-time (JIT) inventory process. By maintaining minimal inventory levels—just enough to meet customer orders as they arose—Toyota significantly increased its production efficiency.
In the Kanban system, every part of Toyota’s assembly line is associated with a physical card containing an inventory number. Right before a part is installed in a car, the card is removed and sent up the supply chain to request another of the same part. This system helped Toyota keep its inventory lean, avoiding overstocking and reducing unnecessary costs.
Related Terms: Quality Assurance, Total Quality Management, Statistical Process Control, Kanban, Just-in-Time.
References
- National Library of Medicine. “Walter A Shewhart, 1924, and the Hawthorne Factory”.
- Toyota. “Toyota Production System”.
