Total Quality Management (TQM) can be defined from three words: Total (whole), Quality (quality, degree / excellence level of goods or services), Management (action, art, hooking, controlling, direction). Of the three words it possesses, the TQM definition is: “a customer-oriented management system with activities pursued very correctly through continous improvement and motivating employees” (Kid Sadgrove, 1995)
TQM PRINCIPLES
1. Leadership
A leader is able to determine the unity of direction and goals of the organization. Leaders must create and maintain or maintain an external environment where people can engage fully in achieving organizational goals. There are several specific applications for leadership, namely:
1. Consider the needs of all interested parties including customers
2. Define and explain the vision of the organization in the future so that everyone understands the purpose
3. Set goals and targets that are challenging and socialized
4. Create and support the values of togetherness, honesty and ethical task models at all levels of the organization
5. Complete everyone with the necessary resources (eg, training according to the task needs), and give freedom to act with full responsibility
6. Energize the greatness and recognition of everyone’s contribution.
2.Respect against each person
In a company of world class quality, every employee is seen as an individual with distinctive talent and kretivitas. Thus, employees are the most valuable organizational resources. Therefore, everyone in the organization is treated well and given the opportunity to engage and participate in the decision-making team.
All people at all levels are the essence of the organization and their full involvement enables the use of their ability to benefit the organization. There are several specific applications for respect for everyone, including:
a) Encourage everyone to understand the importance of their contribution and role in the organization
b) Strive for everyone to recognize the performance limits and scope of their responsibilities within the organization
c) Strive for everyone to know their work problems and motivated to solve them
d) Encourage everyone actively to see opportunities to improve their competence, knowledge and experience
e) Facilitate for everyone to freely share their knowledge or experience and innovate
f) Feel free to let everyone openly discuss issues.
3.Customer satisfaction
In TQM the concept of quality and customer expanded. Quality is not only meaningful in accordance with certain specifications, but the quality is determined by the customer. Customers themselves include internal customers and external customers. Customer needs are strived to be satisfied in all aspects, including price, security, and timeliness. Therefore all activities of the company must be coordinated to satisfy the customers. The quality of a company is equal to the value given in order to improve the quality of life of customers. The higher the value given, the greater the customer satisfaction. The purpose of customer satisfaction itself is that the organization depends on its customers because it has to understand the various needs of the customer at this time and in the future, recognize the requirements or demands of the customer and strive to fulfill or even exceed what the customer expects. As for some specific applications for customer orientation, namely:
1. Thorough, understand customer needs and expectations
2. Pastika that the organization’s goals are in line with customer needs and expectations
3. Communicate customer needs and expectations throughout the organization
4. Measure customer satisfaction then take action from measurement results
5. Maintain a balance of approaches between customer satisfaction and other stakeholders, such as: capital owners, employees, suppliers, communities and governments.
4.Management based on facts
World-class companies are fact-oriented. The maxim, that every decision is based on slalu data, not just on the feeling (feeling). There are two basic concepts related to this. First, prioritization, a concept that improvement can not be done on all aspects at the same time, given the limited resources available. Therefore by using the data, the management and team within the organization in focusing its efforts on certain vital situations. The second concept, variation or variability of human performance. Statistical data can provide an overview of the variables that are a reasonable part of every organizational system. Thus, management can predict the outcome of any decisions and actions taken. It can be concluded that effective decisions are based on data and information analysis. There are some specific applications for management based on facts, among others:
1. Make sure that the data and information are accurate and reliable
2. Provide data accessed by the needy
3. Analyze data and information by using a valid method
4. Make decisions and take action based on factual analysis, balanced with intuition experience.
5.Continuous improvement.
In order to be successful, every company needs to perform systematic processes in carrying out continuous improvement. The concept that applies here is the PDCAA cycle (plan, do, check, act, analyze), which consists of planning steps, and performs corrective action on the results obtained. Improvements should be a permanent goal of the organization. There are several specific applications for continuous improvement, including:
a) Implement a consistent organizational approach for continuity (continuity) of performance improvement
b) Provide and dispatch human resources for training on methods and tools for continuous improvement
c) Perform continuous improvements to the products, processes and targets of the system
d) Set goals and objectives as guidelines, measure achievements for continuous improvement