1. Running head: TQM and ISO 1
TQM and ISO
Team D
OPS 571
June 15, 2015
Bruce Mischler

2. TQM and ISO 2
TQM and ISO
Total Quality Management, (TQM) is a method of applying fact-based customer
feedback and responses to build a better product and increase profit. TQM requires all employees
to participate in the program on a regular basis, ensuring tools and techniques are properly
managed within each department sector. The “American Society for Quality,” defines TQM as
“a continual improvement management approach for long term success through customer
satisfaction; improving processes and the culture in which they work.” (ASQ.org, 2015).
International Organization for Standardization, (ISO) is a system of standards providing a
model for operating a management system. “International expert consensus offer the benefit of
global management experience to determine more efficient use of resources, improved risk
management, and increased customer satisfaction” (ISO.org, 2015).
Audits are a vital part of the ISO management system approach. A company must pass all
requirements for ISO 9001 certification, or any one of the ISO certification numbers for quality
management. The certification for ISO 9001 states the basic concepts and language for quality
management. Internal audits are used to test the qualifications for the organization. External, or
outside auditors may also be brought in to verify the company certifiable. The ISO certification
deems the company consistent with high quality products or services.
Using TQM and ISO to Improve an Organization
When executed properly, Total Quality Management (TQM) and ISO standards can
improve organizational effectiveness and efficiency. The TQM and ISO process identifies what
customers expect in a product or industry as well as which functional areas and processes require
improvement. To achieve this goal, organizations should focus on customer needs and internal

3. TQM and ISO 3
processes. This is essential to ensure that specific changes are made to meet customer
expectations and make corrections to practices as necessary.
The TQM and ISO process also helps organizations understand the importance of having
the expertise and required resources to deliver their products or services on a continuous basis.
Focusing on internal policies and procedures ensures expected outcomes are achieved without
wasting essential resources. These elements, along with clear communication about what the
company will deliver increases customer satisfaction. The company improves because it
recognizes its shortcomings regarding customer needs and makes the necessary adjustments to
products, services, and practices. Meeting customer expectations enhances quality and leads to
more satisfied customers because their needs have been fulfilled, which generates repeat
customers, higher profits, and a competitive advantage.
Challenges of TQM and ISO
Theoretically, the inclusion of continuous improvement principles in the design of
today’s modern Supply Chain would make sense for any organization. The reality is that
companies fail to change their organizational culture in adopting stronger quality standards due
to three significant factors: time, cost, and culture.
The organization faced with the decision to create controls to monitor current processes
and inputs process from their supply chain required to gain an ISO certification may justify that
increased procedures could slow the workflow due to increased measurement, adding more steps
to the routines of their employees. Organizations traditionally spend training hours through On
the Job training programs limiting classroom development.
Cost plays a significant factor for decisions regarding quality management practices.
Companies would have to contract a third party ISO certified inspector or group to measure both

4. TQM and ISO 4
internal and external service levels of the organization. This process can take several months or
years depending on the complexity of the supply chain. Technology infrastructure can take years
to develop through a working software platform.
Benefits of TQM and ISO
Total Quality Management allows for continuous improvement in a business through
reduction in waste and reduction in lead time as well improvement in customer service. Through
TQM, a company can strengthen its competitive position in the market, adapt quicker to
changing or newer market conditions and increase productivity. Another benefit is improved
image through better customer service, reduction or elimination of defects and waste and
increased cost management through reduction of cost. These benefits lead to increased
profitability, improved customer service and satisfaction as well as employee satisfaction.
Increased employee satisfaction then leads to better employee retention and evokes job security.
Less staff turn-over increases profitability and increases morale.
“ISO International Standards ensure that products and services are safe, reliable and of
good quality. For business, they are strategic tools that reduce costs by minimizing waste and
errors and increasing productivity. They help companies to access new markets, level the playing
field for developing countries and facilitate free and fair global trade” (ISO.org, 2015). In
addition, environmental benefits are also possible by reducing negative impact on the
environment. This is achieved through standardization of all processes within the company and is
audited and certified to ensure consistency.
Quality Control in Relation to TQM or ISO
If an organization is managing under Total Quality Management practices, then it’s
important to have a Quality Control department to make sure that the products being made are

5. TQM and ISO 5
meeting the quality standards of the ISO 9000, as well as standards that executives of the
company has set. This department is responsible for the following functions (Jacobs & Chase,
2011):
 Gathering performance data on products in the field
 Resolving quality problems in the field
 Planning and budgeting the quality control program in the plant
 Designing and overseeing quality control systems and inspection procedures
 Carrying out inspection activities requiring special technical knowledge to
accomplish
Using the tools of acceptance sampling and process control, the Quality Control
department should be able to carry out all of their responsibilities. Process control monitors
quality while the product is being manufactured to make sure that the produced items are
meeting design specifications and to detect shifts in the process that might not fulfill the
standards that are set in place (Jacobs & Chase, 2011). In order to see if there are any issues with
the quality, the quality control department will test a random sample of output from a process to
determine whether or not this process is producing items within a specific range. Quality control
specialists might use control charts to analyze how a process is operating.
Acceptance sampling is performed on products that already exist to determine what
percentage conforms to the specifications. These products are finished batches of manufactured
items that are randomly tested to see how many defective items are within the batch. If it is over
the threshold of acceptability, then the batch or lot is rejected. Overall, having a quality Control
department in place helps the company to make sure the quality program has a customer focus
and is agile enough to make quick changes to the process design as needed.

6. TQM and ISO 6
Conclusion
Organizational Culture is the final factor in implementing a Total Quality Management
program. If the current culture of any organization is resistant to change the principles behind
TQM, or continuous improvement will not be successful. “Organizational culture can influence
how people set personal and professional goals, perform tasks and ad-minister resources to
achieve them. Organizational culture affects the way in which people consciously and
subconsciously is think, make decisions and ultimately the way in which they perceive, feel and
act,” taken from (Hansen, 1989). Culture is the one of the most significant elements for
companies involved in reinventing their commitment to quality.

7. TQM and ISO 7
Reference
G. Hansen and B. Wernerfelt, “Determinants of Firm Performance: The Relative Impact of
Economic and Or-ganizational Factors,” Strategic Management Journal, Vol. 10, No. 3,
1989, pp. 399-411
Jacobs, F. R., & Chase, R. B. (2011). Operations and Supply Chain Management (13th Ed.). New
York, NY: The McGraw-Hill Companies, Inc.
N.A. 2015. ASQ.org American Society for Quality. Total Quality Management, (excerpted from
“The Certified Management of Quality/Organizational Excellence Handbook” pg. 291-
292) Retrieved from http://asq.org/learn-about-quality/total-quality-
management/overview/overview.html
N.A. 2015. ISO.org. Benefits of International Standards. Retrieved from
http://www.iso.org/iso/home/standards/benefitsofstandards.htm
http://www.iso.org/iso/home/standards/management-standards.htm

8. TQM and ISO 8
Reference
G. Hansen and B. Wernerfelt, “Determinants of Firm Performance: The Relative Impact of
Economic and Or-ganizational Factors,” Strategic Management Journal, Vol. 10, No. 3,
1989, pp. 399-411
Jacobs, F. R., & Chase, R. B. (2011). Operations and Supply Chain Management (13th Ed.). New
York, NY: The McGraw-Hill Companies, Inc.
N.A. 2015. ASQ.org American Society for Quality. Total Quality Management, (excerpted from
“The Certified Management of Quality/Organizational Excellence Handbook” pg. 291-
292) Retrieved from http://asq.org/learn-about-quality/total-quality-
management/overview/overview.html
N.A. 2015. ISO.org. Benefits of International Standards. Retrieved from
http://www.iso.org/iso/home/standards/benefitsofstandards.htm
http://www.iso.org/iso/home/standards/management-standards.htm