Tqm And Environmental Cost Essay

3122 words - 13 pages

|3 |THE COST OF TQM |4 |
|5 ...view middle of the document...

TQM is an approach that seeks to improve quality and performance which will meet or exceed customer expectations. This can be achieved by integrating all quality-related functions and processes throughout the company. TQM looks at the overall quality measures used by a company including managing quality design and development, quality control and maintenance, quality improvement, and quality assurance. TQM takes into account all quality measures taken at all levels and involving all company employees.
TQM is a “managerial innovation that emphasizes an organization’s total commitment to the customer and to continuous improvement of every process through the use of data-driven, problem-solving approaches based on empowerment of employee group and teams.”¹ Firm develops and use TQM system in order to:

1. Increase customer satisfaction

2. Cut costs

3 reduce the amount of time required to introduce innovative product to the marketplace. ²

Firm able to simultaneously reduce cost while enhancing their ability to develop innovative product increase flexibility, an outcome that is particularly helpful to firms implementing the integrated cost leadership/differentiation strategy. Exceeding customers expectations regarding quality is a differentiating feature and eliminating process inefficiencies to cut costs allows the firm to offer that the quality to customer at a relatively low price. Thus, an effective TQM system help the firm develop the flexibility needed to spot opportunities to simultaneously increase differentiation and reduce cost.


TQM can be defined as the management of initiatives and procedures that are aimed at achieving the delivery of quality products and services. A number of key principles can be identified in defining TQM, including:

• Executive Management – Top management should act as the main driver for TQM and create an environment that ensures its success.
• Training – Employees should receive regular training on the methods and concepts of quality.
• Customer Focus – Improvements in quality should improve customer satisfaction.
• Decision Making – Quality decisions should be made based on measurements.
• Methodology and Tools – Use of appropriate methodology and tools ensures that non-conformances are identified, measured and responded to consistently.
• Continuous Improvement – Companies should continuously work towards improving manufacturing and quality procedures.
• Company Culture – The culture of the company should aim at developing employees ability to work together to improve quality.
• Employee Involvement – Employees should be encouraged to be pro-active in identifying and addressing quality related problems.


Many companies believe that the costs of the introduction of TQM are far greater than the benefits it will produce. However research across a number...

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