Pakistan’s Sixth International Convention on
November 14-15, 2000, at Lahore
TQM Implementation in
Pakistan: Revolutionary vs.
DR. JAMSHED H. KHAN
LAHORE UNIVERSITY OF MANAGEMENT & SCIENCES (LUMS)
OPPOSITE SECTOR `U’,
LAHORE CANTT – PAKISTAN
TQM IMPLEMENTATION IN PAKISTAN:
REVOLUTIONARY VS. EVOLUTIONARY APPROACH
Dr. Jamshed H. Khan
The Lahore University of Management Sciences (LUMS)
Intense global competition and diminishing trade barriers are making it more and more difficult for companies to maintain their market share. To survive in such a competitive environment a business must maximize total value that it delivers to the customer while minimizing the real costs. To achieve this difficult task a successful business needs to foster a culture where each and every member of the organization is continually striving to delight the customer while minimizing wastage of resources. This customer-focused culture, which also emphasizes continuous improvement, is called Total Quality Management (TQM). Different approaches to developing this culture is the main focus of this paper.
Six successful TQM implementations in Pakistan are studied in detail to develop recommended guidelines for successful TQM implementation in Pakistan. The
implementation processes followed by these companies are broadly categorized as: revolutionary and evolutionary. This paper outlines these approaches and suggests when either approach would be more suitable than the other.
1. TOTAL QUALITY MANAGEMENT
A very comprehensive definition of TQM has been given in the Report of the Total Quality Leadership Steering Committee and Working Councils. This definition was developed through a consensus of the Chairmen/ CEOs of 9 major U.S. corporations, deans and professors of major universities, and eminent consultants in TQM methods and principles, The definition is as follows :
“Total Quality (TQ) is a people – focused management system that aims at continual increase of customer satisfaction at continually lower real cost. TQ is a total system approach (not a separate area or program), and an integral part of high level strategy; it works horizontally across functions and departments, involves all employees, top to bottom, and extends backwards and forward to include the supply chain and the customer chain. TQ stresses learning and adaptation to continual change as keys to organizational success.
The foundation of Total quality is philosophical - a belief system. TQ includes systems, methods and tool. The systems permit change; the philosophy stays the same. TQ is anchored in values that stress the dignity of the individual and the power of community action.”
TQM is a philosophy, a belief system, which ensures that an organization produces the highest value for the customer for any given price. A TQ organization uses its resources in the best possible way to maximize customer value, as it produces only what the customer wants, and minimizes waste. Sustainability is ensured through motivating the workforce, and emphasizing continuous improvement. 1.1: TQM MODEL
TQM is neither solely a ‘Management System’ nor does it entail only using specific ‘Management Tools’. TQM is about developing a culture based upon the ‘philosophy’ of absolute customer focus. The ‘systems’ and ‘tools’ are for the purpose of supporting and reinforcing the philosophy within the organizational culture. A simple model for TQM consists of two main components
TQM Systems & Tools
Total quality management cannot exist without complete acceptance of its philosophy by at least the top management. Once the basic philosophy is accepted by the top management then different systems and tools can be initiated to propagate and facilitate TQM philosophy based culture.
1.2. TQM PHILOSOPHY:
TQM philosophy consists of four basic beliefs:...