International Journal of Operations & Production Management

TQM as a management strategy for the next millennia

Satish Mehra Joyce M. Hoffman Danilo Sirias

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TQM as a management
strategy for the next millennia

TQM as a
management
strategy

Satish Mehra

University of Memphis, Memphis, Tennessee, USA

Joyce M. Hoffman

855

Stephen F. Austin State University, Nacogdoches, Texas, USA, and

Danilo Sirias

Christopher Newport University, Newport News, Virginia, USA

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Keywords Quality, TQM, Implementation, Strategy, Globalization

Abstract Total quality management (TQM) has been acclaimed as an organizational
philosophy to enhance global competitiveness. Will TQM continue to be a management
philosophy of the future in same shape, size, and design? This paper, through literature
search and using field experts, identifies the future role of TQM in businesses facing global
markets.

Introduction
It was in the 1980s that the quality revolution got a serious look by companies
attempting to increase profitability. At the time, no one questioned the results
that were supposedly achievable by using quality techniques. Alternatively, no
one dared to ask why are we using the quality systems as planned. All quality
improvement efforts were supposed to end in good results and nothing was
expected to go wrong. Very little was discussed about the differences between
quality assurance, quality management, total quality etc., etc. As time
progressed, quality revolution made some businesses happy while others were
quite disillusioned. In management meetings, finger pointing took over from
the common rationale of business analysis. So, finally, began the phase of
analyzing quality improvement efforts.
Managing total quality, in recent years, has taken a different meaning as is
evident by numerous articles published on the subject of total quality
management (TQM). What is TQM and how does it differ from the quality
management practices of the past? These remain key questions in various
arenas. Some find the two approaches similar while many others see them
differently. In general, TQM is looked on as a process-oriented philosophy of
enhancing customer satisfaction through the production of higher quality
goods and services. Quality management practices of the past, however, are
regarded as ``after the fact'' control techniques to detect defective items that
require reworking. Hence, past practices focused on quality control rather than
quality management. Past practices were result-oriented compared to today's
process-oriented philosophy.
TQM can also be viewed as an organization-wide philosophy requiring all
employees at every level of an organization to focus his/her efforts to help

International Journal of Operations &

Production Management,
Vol. 21 No. 5/6, 2001, pp. 855-876.
# MCB University Press, 0144-3577

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improve each business activity of the organization. The job of improving and
ensuring quality is no longer solely the responsibility of certain people or for
departments of the organization. It is the responsibility of everyone. The people
in the organization are required to make quality a culture in their daily lives.
Furthermore, it is also important to understand that TQM is a long-term
perpetual improvement process requiring significant resources, both financial
and human. It is a dynamic process not a static one. It is a continuous effort
with no deadlines or target dates. The process can never be considered
complete since there is no goal or destination. Hence, TQM becomes a way of
life.
TQM of tomorrow presents a different scenario. Market dynamics are
changing on a continuous basis. New global markets are presenting newer
challenges that change constantly, causing stressful competitive
environments. Various authors have suggested a new role of TQM
philosophy for businesses operating in the next century. Suazo (1998)
proposes TQM as a holistics approach to managing organizations. Forrest
(1998) has suggested that TQM concepts be applied to implement
sustainable developments that provide competitiveness. Wong (1996) also
alluded to the future of TQM by questioning its role for the twenty-first
century.
Research objectives and goals
This paper examines the future role of TQM and its implications for
managerial thinking processes in coming years. It will be a two-step process. In
the first phase, we will analyze what has been written by many authors as to
what is TQM and how to implement TQM. This phase will require researching
the literature to document, and synthesize, the views of others regarding TQM.
Second, through a panel of experts (from the practising world), we will attempt
a refinement of findings of the previous phase, and furthermore, establish a
path of future trends in the TQM arena. Finally, we will report on the views of
the expert panel as to the future use of TQM ideals.
TQM and its implementation aspects
Much has been written about TQM. The quality literature mainly consists
of case studies and analyses of specific aspects of the TQM system. With
few exceptions (Benson, 1992; Saraph et al., 1989), no systematic attempt
has been made to define the critical elements of TQM implementation. In
order to evaluate the critical elements of TQM implementation, we
conducted a literature review. A preliminary list of elements, identified by
authors, who have written directly about TQM implementation or a TQM
system, was developed. The literature review suggested that there are at
least 45 elements that affect TQM implementation. These elements and their
sources (listed in the Appendix) are presented in Table I.

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1. Top management involvement

Ahire, S. (1996), Black, S. and Porter, L.J. (1996), Blackburn, R. and Rosen, B. (1993),
Bowles, J. (1992), Carson, P. and Carson, K. (1993), Deming, E. (1981-82), Hankes, J.
(1993), Higginson, T. and Waxler, R. (1994), Juran, J. (1993), Kano, N. (1993), Mathews, J.
and Katel, P. (1992), Melcher, A., Acar, W., DuMont, P. and Khouja, M. (1990), MohrJackson, I. (1994), Moran, J. (1991), Nelson, K. (1991), Showalter, M. and Mulholland, J.
(1992), Sowards, D. (1992), Walton, M. (1991), Weintraub, D. (1993), Younger, S. (1993).
2. Suppliers' involvement
Ahire, S. (1996), Becker, S. (1993), Becker, S. Golomski, W. and Lory, D. (1994), Black, S.
and Porter, L.J. (1996), Edosomwan, J. and Savage-Moore, W. (1991), Godfrey, B. (1994),
Harari, O. (1993), Juran, J. (1993), Lascelles, D. and Dales, B. (1989), Luther, D. (1992),
Main, J. (1984), McIntyre, B. (1993), Richardson, J. (1993), Saraph, J., Benson, G. and
Schroeder, R. (1989), Weintraub, D. (1993).
3. Small supplier base
Becker, S. (1993), Black, S. and Porter, L.J. (1996), Deming, E. (1981-82), Juran, J. (1993),
Lascelles, D. and Dales, B. (1989), McIntyre, B. (1993), Richardson, J. (1993), Saraph, J.,
Benson, G. and Schroeder, R. (1989).
4. Total employee involvement
Ahire, S. (1996), Becker, S. (1993), Becker, S. Golomski, W. and Lory, D. (1994), Benson, T.
(1992), Blackburn, R. and Rosen, B. (1993), Cole, R. (1993), Easton, G. (1993), Hankes, J.
(1993), Harari, O. (1993), Higginson, T. and Waxler, R. (1994), Leibman, M. (1992), McCabe,
D. and Lewin, D. (1992) Moran, J. (1991), Niven, D. (1993), Saraph, J., Benson, G. and
Schroeder, R. (1989), Schonberger, R. (1992), Showalter, M. and Mulholland, J. (1992),
Sowards, D. (1992).
5. Teams
Ahire, S. (1996), Becker, S. (1993), Becker, S. Golomski, W. and Lory, D. (1994), Benson, T.
(1992), Blackburn, R. and Rosen, B. (1993), Cole, R. (1993), Easton, G. (1993), Garvin, D.
(1993), Godfrey, B. (1994), Higginson, T. and Waxler, R. (1994), Juran, J. (1993), Kano, N.
(1993), Melcher, A., Acar, W., DuMont, P. and Khouja, M. (1990), Mohr-Jackson, I. (1994),
Niven, D. (1993), Rieley, J. (1992), Saraph, J., Benson, G. and Schroeder, R. (1989),
Schonberger, R. (1992), Schroeder, D. and Robinson, A. (1991), Walton, M. (1991),
Westbrook, J. (1993).
6. Training
Ahire, S. (1996), Becker, S. (1993), Benson, T. (1992), Black, S. and Porter, L.J. (1996),
Blackburn, R. and Rosen, B. (1993), Carson, P. and Carson, K. (1993), Deming, E. (198182), Edosomwan, J. and Savage-Moore, W. (1991), Garvin, D. (1993), Godfrey, B. (1994),
Hankes, J. (1993), Higginson, T. and Waxler, R. (1994), Juran, J. (1992), Juran, J. (1993),
Juran, J. (1993), Luther, D. (1992), Melcher, A., Acar, W., DuMont, P. and Khouja, M.
(1990), Saraph, J., Benson, G. and Schroeder, R. (1989), Schonberger, R. (1992), Schroeder,
D. and Robinson, A. (1991), Becker, S. (1993), Showalter, M. and Mulholland, J. (1992),
Sowards, D. (1992), Walton, M. (1991), Weintraub, D. (1993), Younger, S. (1993).
7. Leadership
Easton, G. (1993), Edosomwan, J. and Savage-Moore, W. (1991), Higginson, T. and Waxler,
R. (1994), Johnston, C. and Daniel, M. (1991), Juran, J. (1992), Juran, J. (1993), Leibman, M.
(1992), Mohr-Jackson, I. (1994), Nelson, K. (1991), Becker, S. (1993), Sowards, D. (1992),
Weintraub, D. (1993).
8. Customer focus
Ahire, S. (1996), Akers, J. (1991), Becker, S. (1993), Black, S. and Porter, L.J. (1996),
Bowles, J. (1992), Cole, R. (1993), Deming, E. (1981-82), Easton, G. (1993), Edosomwan, J.
and Savage-Moore, W. (1991), Fuchs, E. (1994), Godfrey, B. (1994), Goodman, J. (1993),
R., Shani, R. and Krishnan, R. (1994), Greenwood, F. (1992), Hankes, J. (1993), Harari, O.
(Continued)

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management
strategy
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Table I.
Proposed elements of
TQM implementation

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9.
10.
11.
12.

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13.

14.
15.

16.

17.

18.
19.

20.

21.
Table I.

(1993), Harari, O. (1993), Higginson, T. and Waxler, R. (1994), Johnston, C. and Daniel, M.
(1991), Juran, J. (1993), Juran, J. (1993), Kano, N. (1993), Luther, D. (1992), Mohr-Jackson, I.
(1994), Niven, D. (1993), Rieley, J. (1992), Schonberger, R. (1992), Schonberger, R. (1992),
Showalter, M. and Mulholland, J. (1992), Sparks, R. and Legault, R. (1993), Takeuchi, H.
and Quelch, J. (1983) Weintraub, D. (1993), Westbrook, J. (1993).
Human resources
Cole, R. (1994)
Management style
Grant, R., Shani, R. and Krishnan, R. (1994), Lakhe, R.R. and Mohanty, R.R. (1984),
Leibman, M. (1992).
Organizational structure
Bounds, G. and Hebert, F. (1993), Schonberger, R. (1992), Shani, A., Grant, R., Krishnan, R.
and Thompson, E. (1992).
Ownership
Hankes, J. (1993), Harari, O. (1993), Juran, J. (1993), Saraph, J., Benson, G. and Schroeder,
R. (1989), Sowards, D. (1992).
Continuous improvement process
Becker, S. (1993), Cole, R. (1993), Kano, N. (1993), Mathews, J. and Katel, P. (1992),
Melcher, A., Acar, W., DuMont, P. and Khouja, M. (1990), Rieley, J. (1992), Walton, M.
(1991), Weintraub, D. (1993), Westbrook, J. (1993).
Consultants
Sowards, D. (1992).
Business culture
Benson, P., Saraph, J. and Schroeder, R. (1991), Black, S. and Porter, L.J. (1996),
Blackburn, R. and Rosen, B. (1993), Edosomwan, J. and Savage-Moore, W. (1991), Emery,
C. and Summers T. (1994), Fuchs, E. (1994), Hammond, J. (1991), Higginson, T. and
Waxler, R. (1994), Holmes, E. (1993), Leibman, M. (1992), Niven, D. (1993), Shuster, D.
(1994), Westbrook, J. (1993).
Process-oriented
Akers, J. (1991), Becker, S. (1993), Benson, T. (1992), Bowles, J. (1992), Deming, E. (198182), Easton, G. (1993), Fuchs, E. (1994), Godfrey, B. (1994), Greenwood, F. (1992), Hankes,
J. (1993), Main, J. (1984), Mohr-Jackson, I. (1994), Rieley, J. (1992), Saraph, J., Benson, G.
and Schroeder, R. (1989), Walton, M. (1991).
Statistical tools
Ahire, S. (1996), Benson, T. (1992), Deming, E. (1981-82), Garvin, D. (1993), Hankes, J.
(1993), Kano, N. (1993), Main, J. (1984), Saraph, J., Benson, G. and Schroeder, R. (1989),
Schonberger, R. (1992), Walton, M. (1991).
Quality audit
Easton, G. (1993), Juran, J. (1993), Juran, J. (1993), Rieley, J. (1992).
Empowerment
Ahire, S. (1996), Akers, J. (1991), Aubrey, C. II (1993), Becker, S. Golomski, W. and Lory,
D. (1994), Benson, T. (1992), Fuchs, E. (1994), Leibman, M. (1992), Mohr-Jackson, I. (1994),
Moran, J. (1991), Port, O. (1992), Saraph, J., Benson, G. and Schroeder, R. (1989),
Schonberger, R. (1992), Showalter, M. and Mulholland, J. (1992).
Quality planning
Black, S. and Porter, L.J. (1996), Deming, E. (1981-82), Edosomwan, J. and Savage-Moore,
W. (1991), Godfrey, B. (1994), Mohr-Jackson, I. (1994), Saraph, J., Benson, G. and
Schroeder, R. (1989), Weintraub, D. (1993), Younger, S. (1993).
Quality data
Ahire, S. (1996), Juran, J. (1993), Niven, D. (1993).
(Continued)

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22. Mechanism to set priorities

Benson, T. (1992), Benson, T. (1992), Cole, R. (1994), Goodman, J. (1993), Kano, N. (1993),
Port, O. (1992), Weintraub, D. (1993).
23. Mechanism to coordinate activities
Becker, S. Golomski, W. and Lory, D. (1994), Bounds, G. and Hebert, F. (1993),
Johnston, C. and Daniel, M. (1991), Weintraub, D. (1993).
24. Quality council or steering committee
Juran, J. (1992), Sowards, D. (1992).
25. Written policy on quality
Sowards, D. (1992).
26. Measurement of key results areas
Akers, J. (1991), Cole, R. (1994), Easton, G. (1993), Edosomwan, J. and Savage-Moore,
W. (1991), Garvin, D. (1993), Goodman, J. (1993), Hankes, J. (1993), Juran, J. (1993),
Luther, D. (1992), Niven, D. (1993), Port, O. (1992), Schonberger, R. (1992), Sowards, D.
(1992), Weintraub, D. (1993), Westbrook, J. (1993).
27. Reward system tied to key measures
Ahire, S. (1996), Becker, S. (1993), Benson, T. (1992), Deming, E. (1981-82), Juran, J.
(1992), Juran, J. (1993), Showalter, M. and Mulholland, J. (1992), Sowards, D. (1992),
Weintraub, D. (1993).
28. Customer-oriented reward system
Juran, J. (1993), Moran, J. (1991).
29. Recognition and celebration
Becker, S. (1993), Black, S. and Porter, L.J. (1996), Blackburn, R. and Rosen, B. (1993),
Hankes, J. (1993), Juran, J. (1992), Rieley, J. (1992), Schonberger, R. (1992), Weintraub, D.
(1993).
30. Deployment of key information to all employees
Ahire, S. and Rana, D.S. (1995),Benson, T. (1992), Black, S. and Porter, L.J. (1996),
Blackburn, R. and Rosen, B. (1993), Cole, R. (1993), Fuchs, E. (1994), Godfrey, B.
(1994), Hankes, J. (1993), Juran, J. (1993), Kano, N. (1993), Nelson, K. (1991), Niven, D.
(1993), Rieley, J. (1992), Schonberger, R. (1992).
31. Quality-related goals
Becker, S. Golomski, W. and Lory, D. (1994), Benson, T. (1992), Black, S. and Porter,
L.J. (1996), Carson, P. and Carson, K. (1993), Juran, J. (1992), Juran, J. (1993), Juran, J.
(1993), Saraph, J., Benson, G. and Schroeder, R. (1989).
32. Flatter organizations
Becker, S. Golomski, W. and Lory, D. (1994), Harari, O. (1993).
33. Group incentive systems
Becker, S. Golomski, W. and Lory, D. (1994), Blackburn, R. and Rosen, B. (1993),
Carson, K., Cardy, R. and Dobbins, G. (1992), Carson, P. and Carson, K. (1993),
Leibman, M. (1992).
34. Decentralization of operational decisions
Grant, R., Shani, R. and Krishnan, R. (1994).
35. Lateral communication
Blackburn, R. and Rosen, B. (1993), Grant, R., Shani, R. and Krishnan, R. (1994).
36. Decisions based on data
Easton, G. (1993), Garvin, D. (1993), Goodman, J. (1993), Greenwood, F. (1992), Kano,
N. (1993), Leibman, M. (1992), Rieley, J. (1992).
37. Benchmarking
Ahire, S. and Rana, D.S. (1995),Benson, T. (1992), Black, S. and Porter, L.J. (1996),
Garvin, D. (1993), Godfrey, B. (1994), Hankes, J. (1993), Juran, J. (1993), Luther, D.
(1992), Mohr-Jackson, I. (1994), Port, O. (1992), Schonberger, R. (1992).
(Continued)

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Table I.

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Table I.

38. Measurement of cost of quality

Black, S. and Porter, L.J. (1996), Hankes, J. (1993), Saraph, J., Benson, G. and Schroeder, R.
(1989), Sowards, D. (1992)
39. Customer-oriented product development
Ahire, S. (1996), Benson, T. (1992), Cole,
R. (1993), Saraph, J., Benson, G. and
Schroeder, R. (1989), Sparks, R. and
Legault, R. (1993).
40. Long term employment
Schroeder, D. and Robinson, A. (1991).
41. Technical competence of senior corporate executive
Shani, A., Grant, R., Krishnan, R. and Thompson, E. (1992).
42. Board of directors involvement
Aubrey, C. II (1993).
43. Management tools
Rieley, J. (1992).
44. Right-brain thinking
Bookman, B. (1992).
45. Recognition of environmental issues
Black, S. and Porter, L.J. (1996).

In order to better understand the nature of these elements, we grouped them

into five factors. These groups were formed on the basis of commonality of
elements to the operations area of a business. These five key factors are as
follows:
(1) Human resources focus.
(2) Management structure.
(3) Quality tools.
(4) Supplier support.
(5) Customer orientation.
Within each factor, the elements are listed in an hierarchical order as shown in
Table II. This study considers the frequency of citation of a particular element
as an indication of the element's criticality to the TQM implementation process.
In Table II, this frequency is listed in parenthesis next to each element. It
should be mentioned that, in the factoring process, all 45 elements from Table I
were not used. Elements with less than four citations were deleted from any
grouping. Next, let us discuss the five factors and their implication for the TQM
process.
1. Human resource focus.
Good human resource management and practices seem to have a large impact
on the quality movement in organizations. In this factor, we grouped six

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elements that relate people and their reward system. This factor recognizes the
need for developing a good workforce that is well trained and properly
rewarded. Let us look into each element grouped into this factor.
Due to the complexity of the problems companies now face, ``teams'' have
become a necessity, rather than a choice. The nature of the problems today
require a multidisciplinary approach, and teams represent a viable alternative
to deal with such a complex environment. There are various forms of teams
such as quality circles, multi-functional, and self-directed teams. These types of
teams differ on the level of power and involvement that the members have in
the different aspects of their jobs. Companies must be careful when selecting
the type of teams to adopt. Self-directed teams, for example, require heavy
preparation and should not be adopted by ``novices'' (Port, 1992). Also, the
reward system should be team-based. This suggests, as an immediate result,
the need to switch the incentive systems from individual- to group-oriented.

TQM as a
management
strategy
861

Human resource focus

Teams with group incentive system (27)
Training (26)
Total employee involvement (10)
Empowerment and ownership (18)
Reward system (10)
Recognition (8)
Management structure
Top management involvement (20)
Key information to all employees (14)
Leadership (12)
Business culture (12)
Mechanism to set priorities (7)
Mechanism to co-ordinate activities (4)
Quality tools
Quality goals and quality planning (16)
Process orientation (15)
Measurement of key result areas (14)
Statistical process control (10)
Data-based decisions (7)
Quality audit (4)
Supplier support
Supplier involvement (15)
Small supplier base (8)
Customer orientation
Customer focus (34)
Benchmarking (competition) (11)
Continuous improvement process (9)
Customer oriented product development (5)

Table II.
Hierarchical structure
of TQM elements
within factors

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The hypothesis of the use of ``group incentive systems'' under a TQM system
was tested by Becker et al. (1994). They found that there is a trend to change
from an individual-based system before TQM to a group-based incentive
system after adopting TQM principles.
``Training'' is the next element within this factor. This is not a surprise
because TQM demands that people change working practices. For example,
working in ``teams'' requires skills such as problem-solving, human
relations, mathematics, statistics, writing and oral expression. Acquiring
these skills usually requires heavy training. Since training is usually very
expensive, focus should be placed on the immediate needs. Weintraub
(1993) suggests using a just-in-time (JIT) approach to training. Also,
businesses are well advised to develop training materials/manuals that
assist in the enhancement of ``process knowledge'' of an employee (Deming,
1981-82).
``Total employee involvement'' is vital for successful TQM
implementation. Quality has different dimensions such as design,
production, sale, delivery, after-the-sale, safety and security, and perceived
quality (Sparks and Legault, 1993). Total employee involvement is
necessary to ensure excellence for all quality dimensions. In other words,
quality must become the responsibility of everyone in the organization in
order to succeed in the marketplace.
Next on the list are ``empowerment and ownership''. Employees'
empowerment has many advantages. First, the need for supervisors is reduced,
which results in lower costs (Becker et al., 1994). Also, empowerment gives a
sense of ``ownership'' which is also a critical element found in the literature.
When employees are empowered, there is a sense that ``everyone owns his/her
piece of the business [which] unleashes the talent and energy of our people''
(Ackers, 1991, p. 27).
Another element cited was ``reward systems tied to key measures.''
Examples showed that employees act according to how they are measured
and rewarded regardless of the effect their actions have on the overall
performance of the firm. Cases have been found where people acted
completely against companies' strategic priorities just because of a poorly
designed reward system. As a result, reward systems must be designed so
that they promote behaviors that contribute to firms' wellbeing.
The final element within this factor is ``recognition.'' Being recognized by
peers greatly motivates people to improve their processes and become more
effective. Deployment of success stories can be done through newspapers and
fliers. Also, tools such as videos and visual displays can be used to recognize
and celebrate work well done. The results of these promotional activities are
two-fold:
(1) They increase the level of motivation among workers.
(2) They can be used as a training device to deploy solutions that have been
proven to work (the learning organization concept (Garvin, 1993)).

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Human resource could not excel in any business without good management
structure, which we discuss next.
2. Management structure
Organizations should have a management structure that acts as a facilitator
for TQM deployment. Here, we group those elements that create and foster
quality vision. Hence, top management involvement becomes a necessity.
Top management occupies a special place in a TQM implementation. Top
management provides both the physical and leadership needs of the
organization, and most organizational changes and training needs require
top management approval. In addition, top management behavior signals
all employees as to the importance of TQM implementation. Hence, ``top
management involvement'' is a critical element of TQM implementation
and this was validated by our literature review. Top management
involvement is more a matter of coaching and facilitating the work rather
than directing it.
Deployment of ``key information to all employees'' is the next critical element
within this factor. Employees need to have vital information in order to make
good decisions. Several papers mentioned that unsuccessful TQM
implementations showed lack of focus in the different activities of teams that
employees embarked upon. Having the right information coupled with an
adequate reward system is part of the solution. Leadership plays a vital role in
communicating such information.
``Leadership'', which is another way to express top management
involvement, is an important element. Some of the activities top management
can participate in are ``speeches, meeting with employees, meeting with
customers, giving formal and informal recognition, receiving training, and
training others'' (Easton, 1993, p. 35).
Business culture is also mentioned in the literature as a critical element of
TQM implementation. Culture is defined as ``the holistic summation of
individual community members' habitual attitudes and behaviors'' (Shuster,
1994, p. 9). Culture can be analyzed from the point of view of different
countries' abilities to adopt TQM practices (Benson et al., 1991; Hammond,
1991; Holmes, 1993). Also, business culture can be an indicator of the
readiness of a firm to adopt a TQM philosophy (Emery and Summers, 1994).
Because failures in TQM implementation are usually attributed to
resistance to change, cultural change theory is becoming an important
discipline for research (Emery and Summers, 1994).
Since companies have an infinite number of processes and problems to be
solved, it is vital to have a ``mechanism to set priorities.'' As mentioned
earlier, some companies try to improve everything that can be improved and
the result is lack of focus. Shiba et al. (1993) recommend following a chain of
cause and effect relationships. If the problem leads you to any of the five
``evils'' (defects, mistakes, delays, waste, accidents), the problem should be

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solved. Another suggestion is to focus on either reducing cycle time or

attacking the main bottlenecks of the system (Port, 1992). However, there
seems to be no agreement as to which are the best mechanisms and/or tools
to set priorities.
A ``mechanism to coordinate activities'' is highly related to quality
planning. In addition to the lack of focus, companies often try to optimize
their operations by optimizing every department independently. It is well
known that optimum of a system is rarely equal to the sum of the local
optimums. Using the wrong approach results in the lack of coordination
among departments and, hence, resources are wasted. The technique that is
often mentioned is Hoshin management (Fuchs, 1994; Neilson, 1991;
Takeuchi and Quelch, 1983). The Hoshin management process results in the
coordination and deployment of the key activities throughout the firm.
3. Quality tools
One cannot adopt total quality management concepts without the knowledge
and practice of quality associated tools. In this factor, we grouped those
elements that provide the basis of quality tools.
Developing ``quality-related goals'' is highly recommended. Analyses of
common practices indicate that US firms mainly concentrate on achieving
production quotas. This practice has been highly criticized in Deming's 14
points (Deming, 1981) because of its damaging effect on quality. Carson and
Carson (1993) suggest setting both quantity and quality goals to encourage
improvements in both parameters. Quality planning, therefore, becomes a
necessity. ``Quality planning'' basically implies the developing of a plan in
which quality objectives and programs are integrated with the corporate
strategy of the firm. Easton (1993) suggests including not only goals and
objectives but also addressing implementation issues in the quality plan. He
also suggests preparing a written plan to make the issue more formal.
Having a ``process-oriented'' approach, as opposed to a results-oriented one,
is heavily recommended in the literature. Authors strongly suggest
concentrating on improving processes, usually through simplification, and
attacking the root cause of the problems. The usual way to ``improve'' processes
is by covering up the symptoms of the problems with short-term solutions. A
process-oriented philosophy strongly disagrees with that approach.
An emerging way to improve processes can be accomplished by
reengineering. Fuchs (1994) suggests applying reengineering when
processes are at their peak level and only a breakthrough solution can
increase their output. In addition, Fuchs argues that reengineering can be
used when the gap between the output of the process and what is needed
from it is too large.
Within this factor, ``measurement of key result areas'' was another
element cited often in literature. Even though few papers give a
methodology to determine the key areas to be measured, there seems to be

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an agreement that measures must be customer-related. Common

measurements mentioned in the literature are complaints, customer and
employee satisfaction indexes, cycle time, and quality cost. Conversely,
some measurements that might look good but do not provide useful
information should not be used to evaluate a TQM program. Such
measurements include number of hours spent on training, number of
meetings per team, etc. These measurements do not provide information to
determine if the company is going in the right direction.
One caution: companies should not overemphasize the measurement
aspect. Measurement of key areas should be as simple as possible. Harari
(1993) reported cases where companies created cumbersome bureaucracies
just to keep up with all indexes and little measurements. On the other hand,
Luther (1992) showed a case where index reports consisted of only one page
with only the basic information necessary to make decisions. The latter was
more focused and had better results.
``SPC tools'' occupy an important place in the TQM literature. These basic
tools are fairly easy to use, and hence, can be learned by everyone in the
organization. These tools can be used to solve the daily problems employees
face in their jobs. As problems become more difficult to solve, sophisticated
techniques such as experimental design and regression might be added to the
statistical toolbox.
``Data-based decision'' is the next critical element. The complexity of the
problems faced by managers makes it almost impossible to rely solely on
``intuition.'' Goodman (1993) presents several examples where intuition
yielded different results than those obtained using hard data. Careful data
collection and analyses would provide scientific bases to make sound
decisions. Data analyses should be part of both determining customer needs
and improving processes. This also supports statistical control of the
process that requires quality improvement. Additionally, data-based
analysis will ensure the achievement of quality levels through quality audit.
``Quality audit'' is a ``systematic and independent examination to determine
whether quality activities and related results comply with planned
arrangements and whether these arrangements are implemented effectively
and are suitable to achieve objectives'' (Walton, 1991, p. 1). Quality audits
basically have a preventive nature by identifying activities that can create
future problems.
4. Supplier support
Japanese businesses have proved that supplier involvement is essential for
increases in productivity and quality through process improvements
(Deming, 1981-82). In addition to a process improvement approach,
``supplier involvement'' is critical for TQM implementation. It is believed
that ``50 percent of a company's nonconformances are caused by defective
purchased materials'' (Lascelles and Dales, 1989, p. 10). Therefore, it is

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important to have a mechanism that ensures a good incoming quality from

suppliers. A change in the buyer-supplier relationship in the form of a
partnership has been offered as a solution. Since developing partnerships
with suppliers usually requires heavy preparation, a reduction in the
supplier base is usually necessary. This was validated by the literature
because ``small supplier base'' followed as an important element within
this factor. There are some advantages and disadvantages associated
with reducing a company's supplier base. However, discussion of this topic
is out of the scope of this paper, nonetheless it must be mentioned
that forming strategic alliances with suppliers (e.g. in the cases of
Wal-Mart, Nabisco) can be beneficial and that requires a small base of
suppliers.
5. Customer orientation
TQM ideals must keep a close eye on market dynamics, specifically,
customer(s) and competitor(s). In this factor, we group those elements that
affect the market side of a business.
Companies must shift their focus toward customer satisfaction. This
element, ``customer focus,'' is the most heavily mentioned in the literature.
Since TQM is, by definition, a customer-oriented philosophy, customer
focus is expected to occupy a predominant place in the literature. Focusing
on customers requires identifying the customers, their current and future
expectations, and their level of satisfaction. Having a profound knowledge
of customers is the most important aspect of TQM because every activity is
driven by this knowledge. TQM subsystems are designed with the
customer's needs in mind. Therefore, a failure in identifying the right
information can lead the organization toward the wrong direction.
Within this factor, ``benchmarking'' is the second most cited tool in the
reviewed literature. Benchmarking is defined as the ``act of finding out what
the best practices and processes are in business the best of the best,
anywhere in the world and adapting and implementing them, or even
going them one better, in your own firm'' (Westbrook, 1993, p. 13).
Benchmarking provides goals that people can relate to and be motivated by
because such goals have been proven to be achievable (also employees
might say ``if they can, why can't we?''). However, Benson (1992), based on
an international quality study by the American Quality Foundation,
suggests that benchmarking should be used preferably by high performing
companies as the study showed no correlation between using benchmarking
and subsequent success in low and medium performing companies.
Third on the list was ``continuous improvement process'' (CIP). Statistical
tools and continuous improvement process make a powerful combination.
CIP demands improving all processes continuously and statistical
tools provide the resources to systematically make those improvements.
Continuous improvement process is better described by the

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``Deming wheel,'' also known as the PDCA (plan, do, check, act) cycle
(Deming, 1991).
The last important element is ``customer-oriented product development.''
After knowing the TQM philosophy, it is common sense that new product
development should focus on customer needs. Some of the tools mentioned in
the literature that deal with the design process are quality function deployment
(QFD) and simultaneous engineering. Furthermore, continuous improvement of
a product must have its basis in customer orientation through feedback from
consumer channels. An improved product without customer preference(s) is not
improved at all.
TQM a reality check
In order to check on the current reality of TQM implementation, we took
the theoretical findings from the previous phase to the real world. Our objective
was to assess the managerial perceptions of the quality revolution of the future.
Our experiment was designed around senior manufacturing executives
(director level or above) of large manufacturing businesses
that included chemical, cosmetics, medical equipment, automobile, computer
equipment,
major
household
appliances,
and
aircraft
parts.
We believe that these manufacturing leaders offer two strong attributes.
One, they are pace-setters by virtue of their financial standing and
market size. Two, they are forward thinkers due to their global
competitive environment. All information was collected through
detailed one-to-one interviews and discussions with manufacturing executives.
First, we gathered general information about each business's quality efforts
and plans for the future. Second, we presented them with the findings of
our investigation regarding TQM implementation. Finally, management
views were solicited on the future of TQM. It took in all a total of three
visits (per business) to complete our data gathering efforts. Comprehensive
findings of the study were shared with all participants to arrive at
consensus regarding the future of TQM, and these findings are discussed
next.
Critical element validation
The expert panel, in near unanimity, confirmed the findings of our research
relative to the critical elements of TQM use and implementation. It was pointed
out that one cannot assign any priority to any of the elements within the factors
or to the factors themselves. We were advised that a lot depends on the
business, its products, and its markets. This is not a surprising detail given
that our research base to identify the critical elements was the writing of
numerous authors from varied environments over a wide time horizon. All
participants agreed that the recent state of TQM implementation is well
represented in our findings. However, the future could be a different story.

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TQM of tomorrow
In our quest to envision the future of TQM, we explored the managerial
thinking process in reference to incoming quality challenges and associated
improvements. Our findings led us to conclude that the organizational
emphasis of tomorrow will be shifting towards four main areas (called focuses
here) for the improvement of quality. These focus areas are:
(1) customer focus;
(2) process focus;
(3) innovation focus;
(4) environmental focus.

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A detailed analysis of these focus areas is presented in Table III, and we

discuss them next.
Customer focus
In the coming years, the word ``customer'' will take on a different meaning. The
customer side of any business will be a major force in tomorrow's global
markets. Dealing with these forces will require a new approach to designing
managerial actions. Two major elements are expected to be the key focus of the
future actions in regard to market dynamics. One is customer partnership, the
other being reliable supplier source. Customer partnership will require that the
business get closer to the customer, not just physically but in many other
facets. This closeness should take the form of an enterprise wide sharing of
ideas, actions, and other planning aspects. Essentially, it boils down to a
business ``virtually'' sitting at the door steps of the customer. Both parties,
buyers and sellers, are to assume ownership of all actions that occur in the
supply chain.
Information, specifically the flow of information, will become an
extremely crucial element for future success. All trading partners will have
to facilitate synchronized flow of information in order to achieve a high
degree of responsiveness to the ultimate customer. It is also expected, as
suggested by our expert panel, that businesses will have to achieve a high
degree of integration of processes between suppliers and their customers.
This will call for a totally new management thinking, i.e. a focus on global
thinking perspective. The future supplier-customer partnership will yield a
``seamless entity'' that will feel no pain in responding to changes because it
will be a ``seamless'' change. Managing quality will be replaced by
managing change with quality.
Process focus
Our research finds that quality organizations of tomorrow will face a shift in
the management of process. This shift will require a true understanding of the
process dynamics.

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1. Customer focus
.
Customer partnership
Feedback
Loyalty
Enhancing satisfaction
.
Reliable supplier
2. Process focus
.
Self-assessment
Human capabilities
Technological capabilities
Financial capabilities
.
Supplier partnership
.
Critical success factor perspective
.
Information flow perspective
.
Performance measure perspective

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3. Innovation focus
.
Perpetual growth
.

Knowledge-creating worker

Knowledge-creating organization

Knowledge-creating leadership

4. Environmental focus
.
Government regulations
.

Social and ethical obligations

Market dynamics

Quality management efforts will heavily emphasize self assessment of three

major capabilities, i.e. human resource capabilities, technical capabilities,
and financial capabilities. This self analysis will be crucial before forming
any strategic alliance with customers to arrive at the seamless enterprise as
discussed in the earlier section.
Credible and convincing self assessment will become necessary
to forge long-term relations with all trading partners having similar
critical success factor niches. It is this aspect of the process focus
which will form the platform for common improvements in the area of
enterprise-wide quality. Such a platform will provide a basis of a
seamless performance measurement system. A seamless performance
measurement system will enable every enterprise partner to respond in a
synchronized manner to meet the quality levels demanded by the ultimate
customer.

Table III.
TQM: future focus
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870

Innovation/improvement/knowledge focus
Without fast paced responsiveness to changing customer demands
will definitely cause the demise of a business in the coming years of the
new millennia. This sentiment was expressed over and over again by
the participants of this study. Efficient consumer response,
successfully practised by the food and grocery industry, now comes
to the door steps of manufacturers. The service component of their
business takes on a different meaning, with after-sale service just a fading
word.
To provide for customer satisfaction, businesses will have to plan
perpetual growth processes based upon innovation, improvements,
and knowledge creation. These efforts will require technological
leadership in management ranks of all trading partners. These partners
will become knowledge-creating organizations having synchronized
knowledge workers moving in the same direction. Hence, the flow of
information and timing of managerial actions will become critical in the
quality decisions.
Environmental focus
The last missing puzzle in our quest for total quality organization of tomorrow
revealed another focal point of attention, i.e. environmental focus. This is a
three-dimensional focus comprising government regulations, social/ethical
issues, and market dynamics.
Government regulations will stay a mystery in years to come due to
the changing patterns of public opinions. The same will be true of social
and ethical issues. However, such uncertainties will have to be dealt
with through early partnerships between governmental organizations
(e.g. FDA, EPA, etc.) and businesses. Such cooperative alliances
will provide timely and correct information to all trading partners,
and hence, affect the market dynamics through competition. It is in
this respect that the continuous improvement process component of
TQM will take on a new role. This role will be innovation-based,
attempting to discover new knowledge (e.g. new technology to produce
user friendly products of higher quality). Creating knowledge on a
routine basis will replace the current mode of working that focuses on
just doing the job.
Summary and conclusion
The new operating environment of the future will provide a set of
challenges on various levels. A clear focus on defining and managing the
customer side, process emphasis, and creating knowledge through
innovation will comprise the new business environment. Under this new
environment, TQM systems will shift towards a philosophy of quality based
strategic management systems. In this new paradigm, this research predicts

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formation of seamless organizations that will function in a very cohesive

manner to deliver goods and services to global markets. Findings of this
research are in line with the writings of recent authors (Suazo, 1998; Forrest,
1998; Wong, 1996).
In conclusion, this paper proposes that manufacturing businesses take a
closer look at the TQM philosophy in general, and specifically, how is it to
be used in their environment. We suggest that businesses use TQM ideals to
forge new relationships with their trading partners. Furthermore,
businesses must undertake a challenge to design operations using seamless
boundaries in internal processes and external transactions. Our research
finds that instantaneous response to changing market dynamics will be the
single most important challenge of the future. It will require a new
definition of quality and TQM alike. We offer the following working
definitions:
For quality. Quality is what is dictated by the market dynamics and what is
demanded by the ultimate customer.
For TQM. TQM is a quality-based management strategy that promotes
enterprise-wide quality through a strong focus on customer orientation and
environment and dynamics. Additionally, this strategic orientation relies
heavily on synchronized processes among all trading partners to create
knowledge through innovation in order to achieve global competitiveness.
Like any other research effort, our findings could not be all conclusive.
Future research should focus on such topics as ``how to provide
organizational structure that facilitates innovation/knowledge creation
process,'' ``how to foster trading partners through cooperative effort,'' etc.
We hope that research into these areas will provide the missing link
necessary to move into the next millennia smoothly.
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TQM as a
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Akers, J. (1991), ``World-class quality: nothing less will do'', Quality Progress, October, pp. 26-7.
Aubrey, C., II (1993), ``Should the board of directors be involved in TQM'', National Productivity
Review, Vol. 12 No. 3, pp. 317-23.
Becker, S. (1993), ``TQM does work: ten reasons why misguided attempts fail'', Management
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Becker, S., Golomski, W. and Lory, D. (1994), ``TQM and organization of the firm: theoretical and
empirical perspectives'', Quality Management Journal, Vol. 1 No. 2, pp. 18-24.

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Benson, P., Saraph, J. and Schroeder, R. (1991), ``The effects of organizational context on quality
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Benson, T. (1992), ``IQS: when less is more'', Industry Week, September 7, pp. 68-77.
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management'', National Productivity Review, Winter, pp. 12-22.
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Emery, C. and Summers, T. (1994), ``An exploratory examination of cultural readiness as a

prerequisite to successful application of total quality management programs'', paper
presented at SE DSI, Williamsburg, VA.
Fuchs, E. (1994), ``Total quality management from the future: practices and paradigms'', Quality
Management Journal, Vol. 1 No. 1, pp. 26-34.

874

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practice'', Sloan Management Review, Vol. 35 No. 2, pp. 25-35.

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