Final answer:
Total Quality Management (TQM) is true to be the management of an entire organization towards excellence in all quality dimensions that matter to customers. It requires a culture of continuous improvement and involves every member of the organization. TQM uses various tools like Six Sigma and Kaizen for enhancing quality standards.
Step-by-step explanation:
Total Quality Management (TQM) is a management philosophy and company strategy that aims to harness the human and material resources of an organization in the most effective way to achieve the highest quality standards and long-term customer satisfaction. It involves continual improvement in all operations, products, services, and the culture of the company. The statement that 'Total Quality Management is the management of an entire organization so that it excels in all quality dimensions that are important to customers' is true.
TQM requires that the company's culture is such that every employee is committed to maintaining high standards. This total commitment to quality helps in identifying and eliminating issues which can lead to inferior product quality or customer dissatisfaction. TQM invariably implies that quality is not just the focus of a particular department, such as quality control, but is a central concern for everyone in the organization, from top-level executives to frontline workers.
Key components of TQM include customer-focused service, process orientation, strategic and systematic approach, improvement covering everything (continuous improvement), fact-based decision-making, effective communications, and involving everyone in the organization. These elements together help in achieving the highest quality standards in every aspect of the business. To ensure effective implementation of TQM, organizations use various tools and methodologies, such as Six Sigma, Kaizen, and 5S methodologies, which are designed to streamline processes, reduce waste, and enhance product and service quality.