TQM

By Maaz Khokhar

INTRODUCTION
Total Quality Management (TQM) is a comprehensive

and structured approach to organizational

management that seeks to improve the quality of
products and services through ongoing refinements
in response to continuous feedback.
TQM can be applied to any type of organization; it

originated in the manufacturing sector and has since

been adapted for use in almost every type of
organization imaginable, including schools, highway
maintenance, hotel management, and churches.

CONT

TQM uses strategy, data, and effective

communications to integrate the quality discipline

into the culture and activities of the organization.
An organization having TQM must have the following

characteristics;
Customer Focused
Process centered
Strategic & systematic approach
Continual improvement
Fact-Based Decision Making
Effective Communications

CONT..
This study will show whether Pakistani firms

are implementing TQM or not.

BACKGROUND
During 1950s W. Edwards Deming taught methods

for statistical analysis and control of quality to

Japanese engineers and executives.
In 1968, The Japanese named their approach to

total quality companywide quality control.

In the late 1970s and early 1980s, the developed

countries of North America and Western

Europesuffered economicallyin the face of stiff
competition from Japan's ability to produce highquality goods at competitive costs.

Cont

The United States undertook its own soul-

searching, expressed most pointedly in the

television broadcast of
If Japan Can... Why Can't We?Firms began
reexamining the techniques ofquality
controlinvented over the past 50 years and how
those techniques had been so successfully
employed by the Japanese.
TQM may have been first coined in the United

States by theNaval Air Systems Commandto

describe its quality-improvement efforts in 1985

LINK WITH MANAGEMENT

ACCOUNTING
TQM is a qualitative technique of Managerial

accounting.
TQM is linked with management accounting

because it includes;
Performance measurement
Variance analysis
Decision making
Forecasting & Budgeting

RELATED LITERATURE
A study by Ioan Milosan in 2011 from the

Transilvania University of Brasov, Romania

entitled Studies about the Total Quality
Management Concept Concluded that there
are six key elements to successfully
implement a TQM process:
confidence, training, teamwork, leadership,
recognition, and communication.

CONT
A study on Implementation of TQM in

Manufacturing Industries in the Kingdom of

Saudi Arabia by Anis ur Rahman and
Muhammad T. Attar, found that many
companies in the western region of the KSA
have a low level awareness of TQM
implementation and its benefits. This is
because of emphasizing on the one aspect of
quality program.

ISO CERTIFIED
COMPANIES
Some ISO 9000 certified companies in Pakistan

are;
Lakson Tobacco Ltd.
Pakistan Tobbaco Ltd.
Pak-Kuwait Takaful Ltd.
Bosch Pharmaceuticals
Paramount Spinning mills
National Silk and Rayon Mills
Mari Gas Company
Epla Laboratories Ltd.
Pak Leather Craft Ltd.

METHODOLOGY

SAMPLING DESIGN:

There was no specific sample size for this research.

The firms selected for data collection were listed in

Karachi stock exchange.

The aim was to get a wide range of responses from all
over Pakistan.

DATA COLLECTION METHOD:

The data was collected by spreading online survey

questionnaires through e-mails.

Companies were randomly selected and contacted
through Karachi stock exchange website.

Cont
RESPONSE:
The questionnaire was sent to almost 100

companies.
The response rate was very low.
Only nine companies filled the
questionnaires.

RESULTS:
In PDF file

CONCLUSION
The first part of the questionnaire consisted general

questions to indirectly find the extent of importance

given to quality and customer satisfaction by the
company.
The study found that all of the nine companies are
very well aware that quality management is the basic
tool in order to increase the market share and reduce
warranty claims. Majority of the companies rated
quality as very important and are also determined to
solve quality related problems.
The majority of the companies gathers customer
feedback because they consider customer
satisfaction very important.

Cont
The second part of the questionnaire was to know

whether the companies have implemented a formal

quality program or not, what type of program it is and
what benefits the company achieved after
implementation.
Out of the total, three companies have implemented
TQM as their quality improvement program and four
companies have implemented a general quality control
program. Both these programs implemented are long
term plans which are fully supported by the top
management of the companies.
The major objectives of these programs are; to increase
the productivity and to comply with regulations.

Cont..
A formal training has been given to the

employees by majority of the companies and

after the implementation of quality
improvement program the quality of products
and services has improved and the
relationship with the customers and suppliers
has also improved.

THANKYOU