Dr. Edward Deming-management philosophy and systems expert-encouraged the Japanese to adopt a systematic approach to problem solving, which later became known as the Deming or Plan-Do-Check-Act (PDCA) Cycle.
Deming subsequently replaced “Check” by “Study”, as the word reflected the actual meaning of the approach more accurately.
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Hence, PDCA cycle is also alternatively abbreviated as the PDSA Cycle. According to Deming consumers are the most important part of a production line.
Meeting and exceeding the customer’s requirements is the task that everyone within an organization needs to accomplish. Furthermore, the management system has to enable everyone to be responsible for the quality of his output to his internal customers.
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Deming’s thinking in the late’ 1980’s can best be expressed as Management by positive cooperation. These calls for a different organizational climate (organizational culture) and involves the following three elements:
a. Happiness in Work
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b. Innovation
c. Cooperation
The subsequent section deals with the principles of Hoshin which is required to fully comprehend the structure of TQM.
TQM organizations integrate customer knowledge with other information and use the planning process to orchestrate action throughout the organization to manage day-to-day activities and achieve future goals. Plans are reviewed at periodic intervals and adjusted as necessary. The planning process is the glue that holds together all TQM activity.
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TQM organizations hold the belief that customers will be satisfied only if the products and services that meet their needs are consistency delivered when expected, and are priced for value. TQM organizations use the techniques of process management to develop cost-controlled processes that are stable and capable of meeting customer expectations.
TQM organizations also understand that exceptional performance today may be unacceptable performance in the future. So they use the concepts’ of process improvement to achieve both breakthrough gains and incremental continuous improvement. The final element of the TQM model is total participation.
TQM organizations understand that all work is performed through people. This begins with leadership. In TQM organizations, top management takes personal responsibility for implementing, nurturing, and refining all TQM activities.
They make sure that people are properly trained, capable, and actively participate in achieving organizational success. Management and employees work together to create an empowered environment where people are valued.