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Method guide · Quality management

Total quality management (TQM): definition, the 8 principles, and TQM vs Six Sigma and ISO 9001

Short answer

Total quality management (TQM) is a way of running a whole organization so that every person in every department shares responsibility for meeting the customer's requirements and keeps improving the processes that make the product. Quality is built in at each step by the people doing the work, judged with data and improved without end, instead of being sorted out by an inspection department at the end of the line.

TQM is a management philosophy, not a standard or a single tool. It rests on a few principles: the customer defines quality, everyone takes part, work is managed as processes, decisions come from data, and improvement never stops. It grew out of the statistical quality control of Walter Shewhart and the teaching of W. Edwards Deming and Joseph Juran in Japan in the 1950s, and took the name TQM in the United States in the 1980s. On a shop floor it shows up as operators checking their own work, defects tracked by the hour, a Pareto of the top problems at the huddle, and a team running PDCA on the worst one.

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What is total quality management?

Most plants start with quality as a department. Inspectors check parts at the end of the line, the good ones ship, the bad ones go to a scrap bin or a rework bench, and the quality manager answers the customer's complaints. Total quality management turns that around. The person who makes the part is responsible for its quality, the process is designed so that defects are hard to make, and the quality department's job shifts from catching bad parts to helping every area prevent them.

Each word in the name carries part of the definition. Total means everyone and everything: operators, supervisors, maintenance, purchasing, engineering, sales and suppliers, and every process from quoting an order to shipping it. Quality means meeting what the customer actually needs, first time, where the customer can be the next process on the line as well as the company that buys the product. Management means it is run as a system from the top, with goals in the plan, data on progress and a regular review, not left to good intentions.

TQM is a philosophy, so there is no single official definition and no TQM certificate a plant can hold. That is why the definitions on different sites sound slightly different. They agree on the core: customer focus, involvement of all employees, a process view of work, decisions based on facts, and continual improvement. Quality assurance vs quality control explains the two older ideas TQM builds on.

Where TQM came from: Shewhart, Deming, Juran, Feigenbaum and Ishikawa

The roots are statistical. Walter Shewhart, at Bell Telephone Laboratories, showed that every process varies and that the variation can be measured and controlled. His book Economic Control of Quality of Manufactured Product (Van Nostrand, 1931) set out the control chart. In Statistical Method from the Viewpoint of Quality Control (1939, edited by Deming) he turned specification, production and inspection into a circle, the ancestor of the PDCA cycle.

After the Second World War the Union of Japanese Scientists and Engineers (JUSE) invited W. Edwards Deming to lecture Japanese managers on statistical quality control in 1950. JUSE founded the Deming Prize in 1951. Joseph Juran lectured in Japan in 1954 and taught that quality is a management responsibility, not only a matter for engineers and inspectors. Kaoru Ishikawa spread the approach to the whole workforce through quality circles and the seven basic quality tools, and called the result company-wide quality control. His book What Is Total Quality Control? The Japanese Way (English edition, Prentice Hall, 1985) describes it.

In the United States, Armand Feigenbaum argued that quality must involve every function, from design to shipping, in Total Quality Control (McGraw-Hill, 1961). When Japanese manufacturers began to win on quality in the 1970s and 1980s, American firms studied their methods and the name total quality management came into wide use. The US Congress created the Malcolm Baldrige National Quality Award in 1987, run by NIST, and ISO published the first ISO 9000 series standards the same year. Philip Crosby's Quality Is Free (McGraw-Hill, 1979), with its idea of zero defects and the cost of quality, is the other book of that period most quality managers know.

The 8 principles of total quality management

The list most often quoted is the eight principles published by ASQ, the American Society for Quality. Here is each one with what it looks like on a production floor, which is where most explanations stop short.

The 8 principles of TQM and what each looks like in a plant
PrincipleWhat it meansWhat you see on the floor
Customer focusedThe customer decides what quality is. Requirements come from the customer, and every process has a customer: the next step.Each cell knows what the next cell needs from it, and customer complaints are read out at the huddle.
Total employee involvementEveryone works toward shared quality goals, with the training and the authority to act.An operator can stop the run for a suspect part, and operators sit on problem-solving teams.
Process centeredResults come from processes, so work is managed as defined steps with inputs, outputs and measures.Key operations have a flow chart, standard work and an in-process check at the station.
Integrated systemDepartments and processes link into one system aimed at the same goals, not separate silos.A complaint reaches production, maintenance, purchasing and engineering the same day.
Strategic and systematic approachQuality is part of the strategy and the yearly plan, with goals and a method to reach them.Quality targets sit in the plant plan and are broken down to each line.
Continual improvementProcesses get better step by step, without end, through a repeatable method such as PDCA.Each area works its top defect from the Pareto every month.
Fact-based decision makingDecisions rest on data about how the process performs, not on opinion or rank.The team checks the defect tally and the control chart before choosing a fix.
CommunicationsPeople hear the goals, the results and the reasons for change in time to act on them.Yesterday's defects and today's actions are on the board at every shift start.

ISO 9000:2015 gives a similar but shorter list, the seven quality management principles: customer focus, leadership, engagement of people, process approach, improvement, evidence-based decision making and relationship management. ISO 9001 is built on those seven. The free [TQM self-assessment](/templates/tqm-self-assessment) turns the eight principles into 24 statements several people score, so the weakest principle shows up from evidence.

Deming's 14 points in plain words

Deming set out his 14 points for management in Out of the Crisis (MIT Center for Advanced Engineering Study, 1986). They are the closest thing TQM has to a founding text, and they are blunter than most modern summaries. Below they are restated in plain words, with what each one asks of a plant. Our summary of Out of the Crisis covers the book itself.

Deming's 14 points restated, with what each asks of a plant
PointIn plain wordsWhat it asks of a plant
1. Constancy of purposeMake improving the product and the process a long-term aim, not this quarter's campaign.Quality goals stay in the plan after a bad month.
2. Adopt the new philosophyStop accepting defects, delays and mistakes as normal.A defect that always happens gets an owner.
3. Stop relying on mass inspectionBuild quality into the process so inspection is not the main defence.Checks move to the operator; end-of-line sorting shrinks.
4. Stop buying on price aloneJudge suppliers on total cost, including the cost of their defects, and keep fewer of them for longer.Purchasing sees the scrap and sorting a cheap supplier causes.
5. Improve the system constantlyImprovement of production and service never stops.PDCA on the top defect every month, not once a year.
6. Train on the jobTeach people the job properly, the way it is really done.Standard work and a signed-off OJT before anyone runs a station alone.
7. Institute leadershipA supervisor's job is to help people do better work, not to police them.The supervisor clears the obstacle raised at the huddle.
8. Drive out fearPeople must be able to report problems and ask questions without risk.Stopping the line for a defect is thanked, not punished.
9. Break down barriers between departmentsDesign, production, purchasing and sales work as one team on quality.Quality, maintenance and production review the same Pareto.
10. Drop slogans and targets for the workforceBanners asking for zero defects do not fix a system that makes defects.Take the banner down and fix the process it was about.
11. Drop numerical quotasQuotas and goals set without a method push quantity over quality.Measure the process and improve it instead of setting a number and hoping.
12. Remove barriers to pride in workLet people take pride in their work; Deming counted yearly merit ratings among the barriers.Fix the tools, materials and instructions that make good work hard.
13. Education and self-improvement for allEncourage everyone to keep learning, beyond the current job.Teach the basic quality tools to operators, not only engineers.
14. Everyone works on the changeThe transformation is everybody's job, led from the top.Plant leaders walk the floor and review quality results every week.

Juran's trilogy: planning, control and improvement

Joseph Juran edited Quality Control Handbook (McGraw-Hill, first edition 1951) and described quality as fitness for use: a product is good if it does what the user needs, reliably. His best-known model, the quality trilogy, splits quality work into three processes that every plant needs at once. He set it out in a 1986 article in ASQ's Quality Progress and in Juran on Leadership for Quality (Free Press, 1989).

The Juran trilogy in a plant
ProcessWhat it doesIn a plant
Quality planningWork out who the customers are, what they need, and design the product and process to deliver it.Control plan, FMEA and capability checks before a new part is launched.
Quality controlHold the process at the planned level and act when it drifts.Control charts, in-process checks, reaction plans and NCRs.
Quality improvementRaise the process to a new, better level, one project at a time.A team works the top defect on the Pareto to a lower, stable level.

Juran also gave quality managers the Pareto principle: a few causes account for most of the problems, so work on the vital few first. The [Pareto chart guide](/learn/pareto-chart) shows how to build one from a defect tally.

TQM tools and methods

TQM has no tools of its own that other methods lack. What makes it TQM is that the tools are used by everyone, not only by quality engineers. Ishikawa's seven basic quality tools are the core, because an operator can learn them in a few hours and use them on the line the next day.

The seven basic quality tools and the other methods TQM uses
ToolWhat it answersWhere to start
Check sheetHow often does each defect happen, and when?Defect check sheet
Pareto chartWhich few defects cause most of the loss?Pareto chart guide
Cause-and-effect (fishbone) diagramWhat could be causing this defect?Fishbone diagram guide
HistogramHow is a measurement spread around the target?Histogram guide
Scatter diagramDoes one variable move with another?Scatter diagram template
Control chartIs the process stable, or has something changed?Control chart guide
StratificationIs the problem worse on one shift, machine or material lot?Split the check sheet data by shift, machine and lot
PDCA cycleHow do we test a change and keep what works?PDSA and PDCA guide
Quality circlesWho works on the problem?Quality circle meeting record
Cost of qualityWhat do defects and checks cost us?COPQ calculator

Plants that go further add FMEA, poka-yoke, SPC and root cause analysis. See [FMEA](/learn/fmea), [poka-yoke](/learn/poka-yoke) and [root cause analysis](/learn/root-cause-analysis).

TQM in a plant: an illustrative example with the cost of quality

This example is illustrative. A stamping and assembly plant sells about $2,400,000 of brackets and frames a month. Quality is run the traditional way: a final inspection crew sorts every lot, scrap goes in a bin that nobody counts until month end, and the quality manager answers customer complaints alone. The plant manager decides to run quality the TQM way and starts by putting a number on the problem.

The usual way to price quality uses four buckets. Prevention costs are spent to stop defects being made: training, FMEA reviews, error proofing. Appraisal costs are spent to find them: inspection, testing, gauges. Internal failure costs come from defects caught before shipping: scrap, rework, re-inspection. External failure costs come from defects the customer finds: returns, warranty, sorting at the customer's site. Internal plus external failure is the cost of poor quality (COPQ); all four together are the cost of quality.

Illustrative monthly cost of quality, before and after a year of TQM
Cost bucketBeforeAfter 12 monthsChange
Prevention (training, FMEA reviews, error proofing)$6,000$15,000+$9,000
Appraisal (final inspection, tests, gauges)$30,000$24,000minus $6,000
Internal failure (scrap, rework, re-inspection)$54,000$30,000minus $24,000
External failure (returns, warranty, customer sorts)$30,000$9,000minus $21,000
Cost of poor quality (internal + external)$84,000, 3.5% of sales$39,000, about 1.6% of salesminus $45,000
Total cost of quality (all four)$120,000, 5.0% of sales$78,000, about 3.3% of salesminus $42,000

Check the sums. Before: 6,000 + 30,000 + 54,000 + 30,000 = 120,000, and 120,000 / 2,400,000 = 5.0%; COPQ 54,000 + 30,000 = 84,000, and 84,000 / 2,400,000 = 3.5%. After: 15,000 + 24,000 + 30,000 + 9,000 = 78,000, which is 3.25% of sales; COPQ 39,000 is 1.625%. The other way round: prevention rose by 9,000 while appraisal fell by 6,000 and failure fell by 45,000, so the net saving is 45,000 + 6,000 minus 9,000 = 42,000 a month, which matches 120,000 minus 78,000. The [COPQ calculator](/tools/copq-calculator) does this for your own numbers.

Monthly cost of quality by bucket, before and after a year ($ thousands)

Example numbers
  • Prevention: 6 thousand dollars before, 15 after
  • Appraisal: 30 thousand dollars before, 24 after
  • Internal failure: 54 thousand dollars before, 30 after
  • External failure: 30 thousand dollars before, 9 after
  • Cost of poor quality: 84 thousand dollars before, 39 after

Before and after in thousands of dollars a month: prevention 6 to 15, appraisal 30 to 24, internal failure 54 to 30, external failure 30 to 9, and the cost of poor quality, internal plus external, 84 to 39.

Grey ticks are before: 6, 30, 54, 30 and 84 thousand dollars. Prevention is the only bucket that goes up, by $9,000 a month. Failure costs fall by $45,000, so the total drops from $120,000 to $78,000.

The numbers moved because the work changed. Each press got an hourly check sheet, so defects were counted when they happened, not at month end. The Pareto showed burrs and missing weld nuts made up most of the scrap. A quality circle of two operators, a die setter and a quality technician worked the burrs with PDCA and found that die sharpening was done by calendar, not by stroke count; changing to a stroke count cut the burrs. A sensor that stops the cycle when a nut is missing took care of the second defect. Purchasing joined the weekly review once the data showed that one steel supplier's coil caused splits. Prevention spending went up on purpose, and the failure costs fell by five times as much.

One defect handled the inspection way and the TQM way
StepInspection wayTQM way
Who finds the burrThe final inspector, hours or days laterThe press operator at the hourly check
What happens to the lotSorted at the end; bad parts scrappedThe press stops; the last hour of parts is checked
Who works on the causeNobody, unless the customer complainsA small team from the area, with the data
How the fix is keptIt is not; the burr comes backStroke-count sharpening goes into standard work and the PM plan
What the customer seesOccasional escapes and a complaintFewer escapes, and a supplier that shows its data

TQM vs Six Sigma vs ISO 9001 vs lean

These four are often treated as rivals. They work at different levels. TQM is the philosophy. Six Sigma is a project method for cutting variation. ISO 9001 is a standard that sets the minimum a quality management system must do and can be audited. Lean is a system for removing waste and making work flow. A plant can run all four at once, and many do.

TQM, Six Sigma, ISO 9001 and lean compared
TQMSix SigmaISO 9001Lean
What it isA management philosophy for the whole organizationA data-driven project method for reducing variation and defectsAn international standard for a quality management systemA production system for removing waste and making work flow
Where it came fromShewhart, Deming, Juran, Feigenbaum, Ishikawa; Japanese company-wide quality control; named TQM in the US in the 1980sMotorola, mid 1980sISO, first published 1987; current edition ISO 9001:2015The Toyota Production System
Main focusCustomer satisfaction through everyone improving every processVariation measured against the customer's limitsDocumented processes that meet requirements and are auditedLead time, flow and waste
How the work is organizedPrinciples, quality circles, PDCA and the basic quality toolsDMAIC projects led by trained Green Belts and Black BeltsClauses 4 to 10: context, leadership, planning, support, operation, performance evaluation, improvementValue stream maps, standard work, pull, kaizen
Can a plant be certified?No. There is no TQM certificateNo. People are certified as belts, the plant is notYes, by an accredited certification bodyNo
Typical measuresComplaints, cost of quality, first pass yieldDefects per million opportunities, sigma level, project savingsNonconformities, audit findings, objectives metLead time, inventory, productivity

Six Sigma kept TQM's reliance on data and added a fixed project structure and full-time roles; [the DMAIC guide](/blogs/guide-to-dmaic-process) walks through it, and our summary of [The Six Sigma Way](/learn/books/the-six-sigma-way) covers the book that popularized it. Lean shares TQM's respect for the operator and its PDCA habit; the [problem solving methods guide](/learn/problem-solving-methods) shows when to reach for PDCA, A3, 8D or DMAIC.

The most common confusion is between TQM and ISO 9001. A plant can hold an ISO 9001 certificate and still run quality the old way, with procedures written for the auditor and defects sorted at the end of the line. A plant can also live the TQM principles without ever being certified. The two fit best together: ISO 9001 gives the structure (documented processes, internal audits, management review, corrective action) and TQM supplies the culture that makes the structure mean something. The ISO 9001 internal audit checklist and the management review kit cover the structure.

How to start TQM in a plant

TQM fails most often when it is launched as a program with a logo and a training wave, then fades. It lasts when it changes how the plant is run day to day. These seven steps start small and build the habit.

Starting TQM in a plant, in seven steps

  1. 1

    Leadership owns the quality goals

  2. 2

    Write down what the customer needs

  3. 3

    Measure the starting point

  4. 4

    Teach the basic tools on real data

  5. 5

    Start in one area

  6. 6

    Lock in what works

  7. 7

    Spread it and review it

Then the next area, from its own top defect

Steps 5 to 7 repeat: each new area starts from its own top defect, and the self-assessment is scored again after 6 to 12 months.
  1. 1

    Leadership owns the quality goals

    The plant manager puts two or three quality goals in the yearly plan, such as customer complaints, first pass yield and cost of poor quality, and reviews them every month with the staff. If the goals belong only to the quality manager, it is not TQM.

  2. 2

    Write down what the customer needs

    For the top products, list the requirements from drawings, specifications, complaints and returns. For each internal step, ask the next step what it needs. These become the checks at each station.

  3. 3

    Measure the starting point

    First pass yield by line, cost of poor quality by bucket, complaints per month, and the TQM self-assessment scored by people from several levels. The first pass yield calculator and the COPQ calculator do the arithmetic.

  4. 4

    Teach the basic tools on real data

    Short sessions for operators and supervisors on check sheets, Pareto charts, fishbone diagrams and PDCA, using defects from their own line. A tool learned on someone else's example is rarely used.

  5. 5

    Start in one area

    Pick a model area and its top defect from the Pareto. A small team from that area runs PDCA on it every week until the defect falls and stays down. The model area guide explains how to pick the area.

  6. 6

    Lock in what works

    Each fix goes into standard work, the control plan, a check at the station or an error-proofing device, so it survives the next shift change. The SOP guide shows the format.

  7. 7

    Spread it and review it

    Copy the fixes to similar lines, start the next area, review the goals at the monthly management review, and score the self-assessment again after 6 to 12 months to see which principle moved.

The daily part matters more than the launch. A short huddle at shift start that looks at yesterday's defects and today's actions, a supervisor who asks why a part was made outside the standard, and a leader who reads the defect board every week do more for TQM than any training course. How to improve product quality covers the daily routines in more depth.

Common mistakes

  • Making it the quality department's program. TQM means total. If production, maintenance and purchasing are not in the room, it is inspection with a new name.
  • Training everyone and changing nothing. Classroom courses without a real defect to work on are forgotten within weeks.
  • Slogans instead of systems. A zero-defects banner over a press that has no in-process check is exactly what Deming's tenth point warns against.
  • Measuring only the cost of inspection. Without the failure costs, the case for prevention never shows up, and prevention is the first budget to be cut.
  • Treating ISO 9001 certification as the finish line. The certificate proves the system exists; it does not prove that defects are falling.
  • Blaming operators for defects. Most defects come from the process, the tools, the material or the instructions. Ask what in the system allowed the defect before asking who made it.
  • Starting everywhere at once. One area, one defect, worked to closure, teaches more than twenty improvement projects that never finish.

Quality Improvement

Run quality improvement in LeanSuite

Quality improvement in manufacturing, from defect to fix: log quality issues from the floor, rank them in the QA Matrix, trace each to its root cause and follow the CAPA to closure.

FAQ

Questions about total quality management (TQM)

  1. Total quality management (TQM) means everyone in a company is responsible for quality, not only the quality department. The people who do the work check and improve it, decisions are based on data, the customer defines what good looks like, and the improvement never stops. The aim is to prevent defects in the process instead of finding them at the end.

  2. ASQ, the American Society for Quality, publishes this list: customer focused, total employee involvement, process centered, integrated system, strategic and systematic approach, continual improvement, fact-based decision making, and communications.

  3. The seven quality management principles come from ISO 9000:2015, the vocabulary standard behind ISO 9001: customer focus, leadership, engagement of people, process approach, improvement, evidence-based decision making, and relationship management. They overlap closely with the eight TQM principles.

  4. There is no single founder. W. Edwards Deming is named most often, for his teaching in Japan from 1950 and his 14 points in Out of the Crisis (1986). Joseph Juran, Armand Feigenbaum, who wrote Total Quality Control (1961), and Kaoru Ishikawa shaped it as much. Walter Shewhart's control chart work in the 1920s and 1930s came first.

  5. Six Sigma is a structured project method, usually DMAIC, run by trained Green Belts and Black Belts to cut variation in one process at a time and measured in defects per million opportunities. TQM is a philosophy that asks everyone to improve every process all the time. Six Sigma grew out of the same quality movement and is often used inside a TQM culture.

  6. No. ISO 9001 is an international standard for a quality management system, and a plant can be audited and certified against it. TQM is a philosophy with no certificate. ISO 9001 supplies structure such as documented processes, internal audits and management review; TQM supplies the culture of everyone improving quality. They work best together.

  7. An illustrative example: a stamping plant moves checks from a final inspection crew to the press operators with an hourly check sheet, builds a Pareto of the defects, and has a small floor team run PDCA on the top one. Die sharpening by stroke count fixes the burrs, a sensor catches missing nuts, and purchasing joins the weekly review. Prevention spending rises and failure costs fall.

  8. The core is Ishikawa's seven basic quality tools: check sheet, Pareto chart, cause-and-effect or fishbone diagram, histogram, scatter diagram, control chart, and stratification. Around them TQM uses the PDCA cycle, quality circles, cost of quality, and in more mature plants FMEA, poka-yoke and statistical process control.

  9. Deming's 14 points for management, from Out of the Crisis (1986), in short: constancy of purpose; adopt the new philosophy; stop relying on mass inspection; stop buying on price alone; improve the system constantly; train on the job; institute leadership; drive out fear; break down barriers between departments; drop slogans; drop numerical quotas; remove barriers to pride in work; education and self-improvement for all; and make the change everybody's job.

  10. The name is used less than it was in the 1990s, but the ideas are everywhere. ISO 9001's quality management principles, Six Sigma, lean manufacturing and the Baldrige criteria all carry TQM's core: customer focus, everyone involved, decisions from data and continual improvement. Many plants practice TQM without calling it that.

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