Final answer:
Total Quality Management (TQM) is a comprehensive organizational approach centered on quality and continuous improvement to meet customer satisfaction. It includes techniques such as just in time delivery to reduce waste and improve quality control across all parts of an organization.
Step-by-step explanation:
The process of focusing on quality in every part of the organization with a philosophy of continuous improvement, and doing things right the first time is called Total Quality Management (TQM). It is an approach that seeks to improve quality and performance which will meet or exceed customer expectations. It encompasses organizational culture and attitude that aims for long-term success through customer satisfaction, and benefits to all members of the organization and to society. In TQM, employee involvement is a pivotal part of ensuring the high quality of products and services.
JIT (Just In Time) delivery, used by companies like Honda, is an example of TQM in action. By receiving parts daily, companies can immediately identify the quality of the deliveries and catch defects early, thus ensuring a continuous improvement in the quality control. This business strategy doesn't just focus on the effective production but also on reducing waste, including minimal warehousing costs.
Broadly, TQM involves different processes and strategies, such as quality circles, to involve workers in seeking improvement, and emphasizes the need for quality improvement to be continuous. This may also involve adjusting supply chains and the location of suppliers to ensure high-quality inputs into the manufacturing process.