Risk Management in the TQM Framework
Total Quality Management (TQM) is one of the widely used project management technique or approach. TQM mainly concentrates on process measurement and provides continuous improvement. It ensures complete customer satisfaction at every phase of the project. The figure below explains the TQM Framework.
The core of the TQM framework has customer-supplier interfaces, where each interface comprises a wide variety of processes. The culture of the organisation has to organise their risk management technique in such a way as to build interfaces with a commitment to quality through proper communication of quality information.
The TQM framework is supported by roles performed by the people, processes and systems in the organisation. The customer-supplier interface is like the quality chains in the organisation. These chains can be easily broken as and when any person or equipment, fails to meet the customers' expectations. Each and every person in quality chain must be trained to attain quality. Risk management in a TQM entails proper initiative not to disentangle the customer and supplier chain. When TQM is not followed by an organisation, it will cause a list of risks, where you will not be able to:
- Identify the customers, their needs and expectation.
- Measure the ability to fulfil the customers' needs and expectations.
- Monitor any changes in the customers' needs and expectations.
In case of suppliers, you will not be able to:
- Identify your internal suppliers and their needs.
- Proper communication to meet the customers' needs.
To attain total quality in an organisation, it is necessary to combine TQM processes with sound risk management techniques that help the organisation to understand the quality gap.
With the introduction of the Total Quality Management (TQM) the inadequacy in defining project success and failure becomes comprehensible. TQM is mainly concerned with ensuring customer satisfaction and this is possible by delivering project on time within the budget and according to specification while taking the pointers of risk at all stages. The TQM process also involves asking customer about the organisation's performance, which help to:
- Find out any trends and solving those trends before they create any risk.
- Find out the main causes of risk and prevent it from occurring again. This can be done by using charts that are the tools of Statistical Process Control (SPC). The charts used in SPC help to measure and analyse variation in processes.
Total Quality Management considers risk management as an integral part of performing any business activities and names it as Total Risk Management (TRM). This process helps each individual to take responsibility to identify and manage risks in their own areas of authority.