TQM Philosophy - Case Study Example

? Implementing TQM Philosophy Introduction Nearly every organization in this world acknowledges quality to be a critical element for improving strategic performance (Cassidy, 1996). However, the implementation and adoption of quality measures have always been spearheaded by large organizations. The smaller organizations, being the follower, have lagged behind when it comes to quality initiatives. A number of industry experts in this context, have suggested small companies to implement Total Quality Management (TQM) as a mechanism to achieve organizational excellence (Yusof and Aspinwall, 2001). However, this study is not meant for discussing and comparing the quality measures implementation of large and small organization. In this study, the focus will be mainly on the principles of quality management, rationale behind companies considering the implementation of total quality management, the steps of implementing TQM and the result, outcomes and benefits the company gets for implementing TQM in the system. According to Jablonski (1992) “a cooperative form of doing business that relies on the talents and capabilities of both labor and management to continually improve quality and productivity using teams” (p.21). Total Quality Management has been one of the most popular business strategies in many leading business firms across the world (Khalid, Irshad and Mahmood, 2011). The principles of quality management are used by the management as a guide towards improving organizational performance. The principles are generally derived from knowledge and experience. There are eight quality management principles which are made apparent by ISO 9000:2005. The eight principles are consumer focus, leadership, participation of people, process approach, system approach to management, constant improvement, realistic approach to decision making, reciprocally advantageous supplier relationships (ISO, 2012). Only a few companies have been able to achieve success by the implementation of TQM. International Business Machines (IBM), Hewlett-Packard (HP) and Nokia are some of the companies achieved success for implementing TQM (Yusof and Aspinwall, 2000). This study will however shed light only on TQM implementation at IBM. Therefore, it is important to present a brief synopsis of the company. IBM: A Brief Overview International Business Machines Corporation or commonly known as IBM is a US based multinational consulting and technology firm. The company was founded by Charles Ranlett Flint in the year 1911 and is currently headquartered at Armonk, New York, U.S. With strong business network, the company is able to serve customers across the globe. IBM manufactures and markets software, hardware and offer customers with consulting and hosting services (Chacko, 2005). In the year 2012, Fortune ranked IBM as the second largest company in terms of the number of employees and fourth largest in terms of market capitalization. The achievements of the company clearly reflect their commitment towards gaining quality excellence. According to several company personnel, quality management is considered to be the most essential task. This is principally because of the company’s intention to offer quality products to the customers and enhance their market reputation. Moreover, with increasing level of competition within the consulting and IT industry, IBM was compelled implement TQM to a certain extent. The next section of the study will elaborate on the major rationale behind the implementation of TQM at IBM. Rationale for TQM Implementation Organizations around the globe are exploring ways to enhance their business practice and achieve competitive advantage. In order to achieve the same companies often take the assistance of technology. One of the most viable technological innovations of the previous decade was materialization of ERP solution. However, the implementation of this system is a challenge for most of the organizations. The lack of technology and societal resistance are some of the major challenges of the organizations. Moreover, there are cultural issues as well. As a result of that companies shifted their focus on the implementation of TQM (Total Quality Management) so as to maintain quality and achieve business excellence. It can be adopted anytime by a company after recognizing errors in the system. Some of the common reasons for companies adopting TQM are as follows: - To make the organization more competitive and gain superiority. To establish and impart a culture in the organization that fosters longevity and growth. To develop a working environment where everyone can achieve success To increase the employee productive and overall output of the firm. To reduce stress, friction and waste. To build cooperation, partnership and teams. To ensure customers get quality products and services from the company. Apart from the aforementioned causes, companies also consider the implementation of total quality management for other reasons as well. In the context of IBM, one of the divisions of the company discovered that the company is procession 96% of the total orders accurately and to restore and revamp the remaining 4%, around 58% of the hardware and human resources needed to be involved (Qubein, 2009). As a result of that the company was losing out on productivity and experiencing financial losses. Apart from that the company also attempted to streamline their supply chain, modernize equipment, enhance satisfaction level of the customers, and lessen the errors which are produced during the process of manufacturing with the implementation of TQM. IBM succeeded only after several failed attempts to TQM implementation. Steps of Implementing TQM A preliminary step followed by organization around the world before implementing TQM is the assessment of organization’s current state. It is imperative to have relevant pre conditions and sound skills and qualities employees to get the desired result out of the TQM implementation. As a result of that, companies intentionally delays TQM implementation until it reaches a stage where TQM is likely to be successful. In addition, certain level of stress is also required to initiate TQM implementation in organizations. Once the company has been assessed, the next step is to identify the problems faced by the company. In this context, if the company discovers that implementation of TQM will help in addressing the problem with ease; the company decides to implement it. Another vital task is to ensure that the change which is likely to take place in the organization due the implementation of TQM must be communicated to the concerned members of the organization. However, to address these changes companies often take the assistance of an external consultant. Companies put different tools, techniques and approaches into practice for implementing TQM in the system. There are no distinct approaches to the execution of TQM strategy, rather bundles of techniques and tools exists for the same. Some of the most evident tools are Pareto analysis, flowcharting, statistical process control (SPC), employee and customer surveys and cause effect diagram. Similarly, some of the techniques include cost of quality, benchmarking, failure mode effects analysis and design of experiments among others. In the context of IBM, the company carried out a comprehensive survey of its employees and stakeholders before implementing TQM. In addition, IBM pursued benchmarking technique to effectively execute it. Results and Benefits of TQM Implementation With the implementation of TQM, companies around the world are able to achieve a number of benefits. Some of the common benefits provided by TQM or the benefits gained by the company for implementing TQM in their system of operation are streamlined business process, employee empowerment, satisfied customers, cost reduction, defect reduction and increased employee morale among others. In the context of IBM, the benefits for the company for implementing TQM were as follows: - IBM has been able to reduce their service delivery cost to a large extent. This is principally because of the fact that TQM put more emphasizes on prevention instead of correction and inspection. With the implementation of TQM, IBM has been able to link excellence efforts to the bottom line. As a result of that, the overall productivity increased greatly. References Cassidy, M. P., 1996. Streamlining TQM. The TQM Magazine, 8 (4), pp. 24-28. Chacko, G. K., 2005. Creating new corporate memories to reinvent IBM: Memory management disequilibria dimensions (MD) 2 Protocol. Management Research News, 28 (5), pp. 1-26. ISO, 2012. Quality Management Principles. [pdf] Available at: [Accessed 27 June 2013]. Jablonski, J., 1992. Implementing TQM and Competing in the Nineties through Total Quality Management. San Diego: Pheiffcr and Company. Khalid, S., Irshad, M. J. and Mahmood, B., 2011. TQM Implementation in Textile Manufacturing Industry to Success: Review and Case Study. International Business Research, 4 (4), pp. 242-247. Qubein, N., 2009. Implementing Total Quality Management. [online] Available at: [Accessed 27 June 2013]. Yusof, S. M. and Aspinwall, E., 2000. TQM implementation issues: Review and case study. International Journal of Operations & Production Management, 20 (6), pp. 631-655. Yusof, S. M. and Aspinwall, E., 2001. Case studies on the implementation of TQM in the UK automotive SMEs. International Journal of Quality & Reliability Management, 18 (7), pp. 722-743. Read More