RESEARCH AND CONCEPTS

Components of successful totalquality management

Juan Jose TarıDepartment of Business Management, University of Alicante, Spain

Abstract

Purpose – According to the literature, quality management consists of a set of components: criticalfactors, tools, techniques and practices. The purpose of this paper is: to identify the components oftotal quality management (TQM), in order to make them known to managers and thus facilitatesuccessful quality management implementation, and to show the situation of 106 ISO 9000 certifiedfirms concerning these components.

Design/methodology/approach – In order to achieve this objective, a literature review and asurvey based on 106 ISO 9000 certified firms in Spain were developed.

Findings – The results reflect that certified firms must develop their people orientation 1and usetechniques and tools to a higher extent in order to progress towards total quality.

Originality/value – The value of the paper is point out which TQM components are important tosuccessfully implement TQM and identify the situation of these components in ISO 9000 certifiedfirms in a particular area.

Keywords Total quality management, ISO 9000 series, Spain

Paper type Research paper

IntroductionTotal quality management (TQM) allows firms to obtain a high degree ofdifferentiation and to reduce costs. In spite of its advantages (Sohal et al., 1991;Maani et al., 1994; James, 1996; Kanji, 1998; Lee, 1998; Quazi and Padibjo, 1998),problems have also been detected in its implementation (Joubert, 1998; Kanji, 1998;Quazi and Padibjo, 1998). Firms must develop a number of components in anintegrated way for successful implementation (Easton and Jarrell, 1998; Claver et al.,1999).

Various studies have been carried out for the identification of those elements ofsuccessful quality management, from three different areas: contributions from qualityleaders, formal evaluation models and empirical research. Besides, researchers haveidentified a number of tools and techniques for quality improvement that are necessaryfor TQM success. Managers need to know which aspects they must consider tosuccessfully develop TQM in their firms.

The purpose of this paper is: to review the literature in order to identify thecomponents of TQM that managers must implement to develop TQM to its full extent,as a management system improving quality and competitiveness; and to study the caseof 106 ISO 9000 certified firms.

This paper will be structured as follows: firstly, we shall review the literature, on theone hand, concerning TQM critical factors, and on the other, regarding the tools andtechniques for quality improvement. The following section reflects the components ofTQM that are required for managers to be aware of the factors of TQM success. The

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next section shows the case of 106 ISO 9000 certified firms. Finally, a number ofconclusions will be proposed.

A review of the literatureAs pointed out above, TQM can be studied from three different approaches:contributions from quality leaders, formal evaluation models and empirical research.Deming (1982, 1986) underlined the use of statistical techniques for quality control, andproposed his 14 principles to improve quality in organizations, based on the followingideas: leadership, an improvement philosophy, the right production from thebeginning, training for managers and employees, internal communication aimed at theelimination of obstacles for cooperation and the suppression of quantitative objectives.Juran (1986) pointed out the importance of both technical and managerial aspects, andidentified the three basic functions of the quality management process: planning,organization and control, as the stages for quality improvement; he indicated that theaim of the management is to reduce the cost of mistakes, reaching a point where thetotal costs of quality are minimal (Juran and Gryna, 1993). Ishikawa (1976, 1985)emphasized the importance of training, the usage of cause-effect diagrams for problemsolving, and quality circles as a way to achieve continuous improvement. Crosby (1979)defined 14 steps for quality improvement, including top and intermediate managementcommitment, quality measurement, evaluation of quality costs, corrective action,training, a zero-defect philosophy, objective setting and employee recognition. Lastly,Feigenbaum (1991) described the notion of total quality, based mainly on leadershipand an understanding of the aspects of quality improvement, a commitment toincorporate quality in the firm’s practices, and the participation of the entire workforce,the objective being the reduction of total quality costs.

The research by all these authors shows both strengths and weaknesses, for none ofthem offers the solutions to all the problems encountered by firms (Dale, 1999),although some common issues can be observed, such as management leadership,training, employees’ participation, process management, planning and qualitymeasures for continuous improvement.

These ideas have exerted an influence upon later studies, in such a way that theliterature on TQM has progressively developed from these initial contributions,identifying various elements for effective quality management. Taking the initialresearch as a basis, the critical factors of TQM found in the literature vary from oneauthor to another, although there is a common core, formed by the followingrequirements (Claver et al., 2003): customer focus, leadership, quality planning,management based on facts, continuous improvement, human resource management(involvement of all members, training, work teams and communication systems),learning, process management, cooperation with suppliers and organizationalawareness and concern for the social and environmental context.

Alongside these factors, identified both in theoretical and empirical studies, thereare standardized quality models used by firms in practice as a guide for theirimplementation, or in order to carry out self-evaluations of their quality practices. Themain models are the Malcolm Baldrige National Quality Award model in the USA, theEuropean Foundation for Quality Management (EFQM) model in Europe and theDeming Application Prize model in Japan.

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The USA model lists in seven categories the main concepts and values in qualitymanagement: leadership, strategic planning, human resources orientation, processmanagement, information and analysis, customer and market focus and businessresults. The EFQM model consists of the following principles: leadership, employeemanagement, policy and strategy, alliances and resources, process management,people results, customer results, society results and key results (EFQM, 2000). TheJapanese model is grouped into ten chapters, which are in turn divided, as in the twoprevious models, into a number of subcriteria, in the following way: policies,organization, information, standardization, development and usage of humanresources, activities ensuring quality, activities for maintenance and control,activities for improvement, results and future plans. These principles, in general,summarize the aspects defined in the literature. Thus, issues related to theparticipation of employees, staff, work teams and communication, amongst others,may be included within the factor of human resource management.

In this line of work, we should refer to the studies by Anderson et al. (1994), whostrive to synthesize a theory of quality management from research based on the Delphimethod, carried out both on academics and on managers closely related with quality,and using questions related to Deming’s 14 principles. From their conclusions theyobtain seven concepts which form Deming’s quality management theory:forward-looking leadership, internal and external cooperation, learning,administrative processes, continuous improvement, employees’ performance andcustomer satisfaction.

Together with this study, there have been so far a number of contributions yieldinga valid, reliable measurement tool to suitably evaluate these factors, which can helpboth researchers and managers who have to make decisions concerning TQM. First,we may quote the studies developing an instrument for measuring qualitymanagement, assessing its validity and reliability, applicable only to industrialfirms (Flynn et al., 1994; Ahire et al., 1996); and second, the studies which develop avalid, reliable quality measurement instrument, applicable to both industrial andservices firms (Saraph et al., 1989; Badri et al., 1995; Black and Porter, 1995, 1996;Grandzol and Gershon, 1998; Quazi et al., 1998), shown in Table I.

A review of the literature also shows that, according to some authors, TQM is ratherthan a mere set of factors, a network of interdependent components, a managementsystem consisting of critical factors, techniques and tools (Hellsten and Klefsjo, 2000).In fact, techniques and tools are vital to support and develop the quality improvementprocess (Dale and Shaw, 1991; Bunney and Dale, 1997; Stephens, 1997; Hellsten andKlefsjo, 2000; Curry and Kadasah, 2002).

A single tool is a device with a clear function, and is usually applied on its own,whereas a technique has a wider application and is understood as a set of tools(McQuater et al., 1995). Ishikawa (1985) and McConnell (1989) identified a list of sevenTQM tools: flow charts, cause and effect diagrams, Pareto charts, histograms, runcharts and graphs, X-bar and R-control charts and scatter diagrams. Also, Imai (1986),Dean and Evans (1994), Goetsch and Davis (1997), Dale (1999), and Evans and Lindsay(1999) offered a list of tools and techniques for quality improvement. For their part,Dale and McQuater (1998) identified the tools and techniques most widely used byfirms, as shown in Table II.

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Table I.Critical factors of qualitymanagement according to

the literature

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TQM and its componentsThis examination allows us to say that:

. The critical factors of TQM differ from one author to another, although there arecommon issues.

. In practice, firms may follow known, accepted, standard models as a guide tocarry out quality management.

. TQM is much more than a number of critical factors; it also includes othercomponents, such as tools and techniques for quality improvement.

According to the literature, these elements may be grouped into two dimensions: themanagement system -leadership, planning, human resources, etc.- and the technicalsystem (Evans and Lindsay, 1999); or into the “soft” and “hard” parts (Wilkinson et al.,1998).

The technical system, as defined by Evans and Lindsay (1999), consists of a set oftools and techniques (run charts, control charts, Pareto diagrams, brainstorming,stratification, tree diagrams, histograms, scatter diagrams, force-field analysis, flowcharts, etc.), while the hard part, according to Wilkinson et al. (1998), includesproduction and work process control techniques which ensure the correct functioningof such processes, amongst others, process design, the “just in time” philosophy, theISO 9000 norm and the seven basic quality control tools. The two dimensions reflect allthe issues that a manager must bear in mind for a successful TQM implementation.

Therefore, the implementation of TQM cannot succeed without the use of qualitymanagement methods (Zhang, 2000). TQM consists of critical factors and methods(Sitkin et al., 1994; Wilkinson et al., 1998; Zhang, 2000). These methods are a set ofpractices, tools and techniques deriving from the critical factors, and are the basicelements required to implement such factors.

The seven basic qualitycontrol tools

The seven managementtools Other tools Techniques

Cause and effect diagram Affinity diagram Brainstorming BenchmarkingCheck sheet Arrow diagram Control plan Departmental purpose

analysisControl chart Matrix diagram Flow chart Design of experimentsGraphs Matrix data analysis

methodForce field analysis Failure mode and effects

analysisHistogram Process decision

programme chartQuestionnaire Fault tree analysis

Pareto diagram Relations diagram Sampling Poka yokeScatter diagram Systematic diagram Problem-solving

methodologyQuality costingQuality functiondeploymentQuality improvementteamsStatistical process control

Source: Dale and McQuater (1998)

Table II.Commonly used tools andtechniques

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However, past evidence has shown that TQM programmes have failed because thesuccess factors were not in place (Curry and Kadasah, 2002). Thus, although it isnecessary to implement every component in order to succeed, one might wonder whichcritical factors and methods managers must be familiar with in order to successfullyimplement them.

On the basis of a quality management methods review (Kanji and Asher, 1996;Zhang, 2000; Kanji, 2001) and the critical factors, tools and techniques review in theprevious section, we propose the model in Table III, which may allow managers toknow which components are necessary for successful TQM implementation.Implementing these aspects will allow TQM to be, rather than a passing fad, animprovement culture that promotes business improvement over time. We may includethe involvement of all members in the firm, training, work teams and communicationsystems within one factor, namely, human resource management.

TQM in ISO 9000 certified firmsA questionnaire was designed based on the EFQM model and on a review of theliterature, in order to measure the degree of implementation of TQM elements in ISO9000 certified firms. The population selected for the study was those firms carrying outtheir activity in the Alicante area (eastern Spain) which have received the ISO 9000certificate. The data were collected by means of a structured personal interview,carried out face to face, based on a closed questionnaire, plus a set of open questionswhich helped to clarify certain points. Finally, 106 firms were interviewed.

Eight critical factors and five results were selected, as shown in Table IV,considering the enablers defined by the EFQM model and a review of the literature,defining the items from those fixed in that model and in the empirical work by Saraphet al. (1989), Badri et al. (1995), Black and Porter (1995, 1996), Powell (1995), Ahire et al.(1996), Grandzol and Gershon (1998) and Quazi et al. (1998).

Alongside these factors, other questions were used to measure empowerment, theuse of personnel policies and the use of quality improvement techniques and tools. Theformer were intended to study the level of empowerment within the firm, based onLawler et al. (1992). The quality manager was asked about the percentage of employeeswho: participated in teams; contributed suggestions; received information; enjoyeddecision-making autonomy; received training; and interacted with customers and/orsuppliers.

Together with this question, another one asked which percentage of employees wererewarded in any of the following ways (other than their wages): an individualmonetary bonus; a collective monetary bonus; a share in the profits; a non-monetaryreward; and a share in the firm’s stock.

Regarding personnel policies (selection, training, appraisal and recognition andcareer development) managers were asked to indicate which policies had changed as aresult of the implementation of a quality system.

Finally, a question was asked in order to study the most frequent techniques andtools, by means of nominal qualitative variables. A total of 12 tools and techniqueswere identified, based on the research by Ishikawa (1985), Imai (1986), McConnell(1989), Dean and Evans (1994), Goetsch and Davis (1997), Dale and McQuater (1998),Dale (1999) and Evans and Lindsay (1999). Thus, those responsible for quality wereasked whether they were not familiar with, were familiar with, used or regarded as a

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Critical factors Methods (practices, tools and techniques)

Customer-based approach Channels for processing customer complaintsIdentifying customer needs (surveys, marketinvestigation, reports from vendors)Customer satisfaction surveyAfter-sales service

Management commitment and leadership Top management commitmentQuality councilSupport improvement activities

Quality planning Mission/vision statementQuality policyQuality goalsBusiness planCommunication strategiesControl and improve of plans

Management based on facts Quality auditEmployee performance evaluationEmployee satisfaction evaluationBusiness evaluationQuality costsUse of indicators

Continuous improvement PDCA cycleSelf-assessment activities (ISO 9000, EFQMmodel,. . .)Seven quality control toolsSeven management toolsOther toolsTechniques

Human resource managementInvolvement of all members in the firm Information communication

Suggestion systemsWork teamsRecognition and reward systems

Training Individual training planTraining for job requirementsGeneral training program

Work teams Cross-functional teamsQuality circles

Communication systems Bottom-up, top-down and horizontalcommunication among all the staffWork informationPosterSloganPersonal letters

Learning Continuous training and educationProcess management Quality manual

Quality system proceduresWork instructionsISO 9001 certificate

Cooperation with suppliers Supplier auditSupplier evaluationSupplier trainingAgreed quality

Organizational awareness and concern for thesocial and environmental context

Environmental manualEnvironmental system proceduresISO 14001 certificate

Table III.Methods in TQM

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basic tool any of the following techniques and tools: graphs, SPC, benchmarking,quality costs, internal audits, failure mode and effects analysis (FMEA), cause andeffect diagrams, Pareto diagrams, histograms, scatter diagrams, flow charts andproblem-solving methodology.

A descriptive analysis was made of these answers in order to gauge the situation ofISO 9000 certified firms concerning total quality. Table IV reflects the average score foreach factor and result of TQM. The implementation of each TQM element expresses ahigher or lower degree of TQM in the certified firms studied.

Customer-related issues and process management are the most important. Humanissues and continuous improvement activities are the least implemented components;such aspects are, incidentally, only briefly dealt with by the ISO 9000 norm.

These results show that ISO 9000 certified firms implement human aspects to alower extent than technical ones, and that alongside with improvement, social concernsand quality planning are the weakest areas. In order to go beyond the ISO 9000 normand advance towards total quality, certified firms should obtain a higher employeeinvolvement and engage in wider planning.

The literature has pointed out that TQM and human resource management go handin hand, the latter being the basis for part of the important success of TQM (Hill andWilkinson, 1995; Briggs and Keogh, 1999). Nevertheless, practice shows a lowerinterest in the human side (Moreno, 1993; Lam, 1995; Van der Wiele et al., 1996). Attimes, it has been found that TQM success depends critically on human aspects(Powell, 1995).

An interest in these issues focuses on facilitating employee involvement anddeveloping personnel policies consistent with the new culture. Table V reflects theaverage participation in the six activities studied. The most common one is the traininggiven to employees and, to a lower extent, information transmission, communicationwith suppliers and/or customers and decision-making power. The least usual ones areinvolvement through work teams and suggestions schemes.

Although employee recognition is a crucial issue in any TQM context, it appears asa very weak area in the firms studied (Table VI), for the results showed a very low

Elements Mean Deviation

Customer focus (F) 5.87 0.60Customer satisfaction (R) 5.71 0.52Staff indicators (R) 5.64 0.94Process management (F) 5.50 0.73Leadership (F) 5.48 0.88Suppliers management (F) 5.41 0.77Learning (F) 5.27 0.87Quality performance (R) 5.27 0.59Quality planning (F) 5.07 0.78Social impact (R) 4.64 1.24Continuous improvement (F) 4.52 0.87Employee management (F) 4.40 0.86Employee satisfaction (R) 3.90 0.90

Notes: F: Factor; R: Result

Table IV.Mean and standard

deviation

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interest in such aspects, and in most cases it was already in place before the qualitysystem was implemented.

As regards personnel policies, the one that is most frequently used by firms istraining, whereas evaluation and recognition and career development are the leastusual ones.

These elements are essential for full TQM implementation, as they create the culturewithin which the TQM tools and techniques can work. Table VII shows the use ofquality improvement techniques and tools in ISO 9000 certified firms.

These results indicate that weaknesses in ISO 9000 certified firms are: humanaspects, such as work teams, suggestions schemes, recognition models, etc., and the

Percentage of firms

Techniques and toolsNot familiar

withFamiliar

withNot

implemented UsedRegarded as a

basic tool Implemented

Internal audits 0.0 0.0 0.0 16 84.0 100Graphics 2.8 16.0 18.8 62.3 18.9 81.2SPC 10.4 37.7 48.1 39.6 12.3 51.9Flow chart 17.9 30.2 48.1 42.5 9.4 51.9Problem-solvingmethodology 21.7 32.1 53.8 42.5 3.8 46.2Quality costs 12.3 42.5 54.8 35.8 9.4 45.2Histograms 27.4 36.8 64.2 31.1 4.7 35.8Benchmarking 21.7 46.3 68.0 31.1 0.9 32.0FMEA 40.6 34.0 74.6 20.8 4.6 25.4Pareto diagrams 40.6 35.8 76.4 17.9 5.7 23.6Cause and effectdiagrams 31.1 47.2 78.3 19.8 1.9 21.7Scatter diagram 46.3 37.7 84.0 15.1 0.9 16.0

Table VII.Techniques and tools ofTQM

Percentage of employees Mean Median Deviation

Individual monetary bonus 27.41 0 38.94Share in the profits 12.69 0 31.47Non-monetary reward 6.09 0 21.19Collective monetary bonus 4.85 0 19.38Being given a share in the firm 4.45 0 13.65

Table VI.Recognition

Percentage of employees Mean Median Deviation

Received training 80.26 100 31.04Received information 57.39 60 40.62Interacted with customers and/or suppliers 46.75 30 37.09Enjoyed decision-making autonomy 42.64 30 34.92Participated in teams 36.05 20 34.95Contributed suggestions 33.87 22.50 31.35

Table V.Empowerment

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use of TQM techniques and tools, other than audits, graphs, statistical data and flowcharts, typical in ISO 9000 certified firms.

TQM allows firms to acquire these factors, within a renovation scheme aimed atimproving quality and competitiveness. Then, ISO 9000 certified firms must developthese aspects in order to progress towards TQM. According to Van der Wiele et al.(2001), “one way of using the quality system to facilitate change is by working onimprovement activities”. Such improvement activities may help managers toimplement the critical factors of TQM by using the methods pointed out in Table III.

ConclusionsThe review of the literature shows, on the one hand, that there have been numerousstudies analyzing the critical factors for successful quality managementimplementation and its influence upon the results, and on the other, whichtechniques and tools might be best suited for quality improvement.

After this review, it can be said that: there is no unique model for a good TQMprogramme; and TQM is a network of interdependent components, namely criticalfactors, practices, techniques and tools.

This paper has pointed out, on the one hand, which TQM components must beconsidered by managers who desire to successfully implement TQM within their firms.Managers can use a set of methods in order to put in practice the critical factors ofTQM. On the other hand, it has examined the TQM elements in ISO 9000 certifiedfirms. The results may be used to identify the situation of many certified firms andshow that this kind of firms must improve their people orientation and use qualityimprovement techniques and tools to a higher extent, even if the factors related to thehard part are more implemented, in order to progress towards TQM. If the finalobjective is to maintain the ISO 9000 certificate, they will stay at a basic TQM level andwill show no interest towards a wider development of quality managementcomponents. However, if they wish to go beyond ISO 9000, these firms must improveall these aspects in order to improve their competitiveness. In practice, the next stepcould be the use of the EFQM model to define improvement activities.

Then, once the management is aware of the TQM components, activities can bedeveloped for their implementation. Such activities will include the practices, tools andtechniques we have mentioned, a person responsible for implementation and acompletion deadline, in order to verify that the implementation has been a suitable one.

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