TQM in Accounting Essays -- essays research papers

Accounting 43 Cost Accounting Costs of Total Quality Management Submitted By: August 4, 2004 Morris De Rosa Total Quality Management or TQM is a management strategy to embed awareness of quality in all organizational processes. The philosophy of TQM goes back to the 1940’s when Dr. Deming started his quality endeavors in Japan. TQM is an approach for continuously improving the quality of goods and services delivered through the participation of all levels and functions of the organization. TQM aims to do things right the first time, rather fix problems after they emerge or fester. ‘TQM is a management philosophy which seeks to integrate all organizational functions (marketing, finance, design, engineering, production and customer service†¦) to focus on meeting customers’ needs and organizational objectives)’ (Hammett 1). TQM may operate within quality circles which encourage the meeting of minds of the workforce to improve production and reduce waste. In a manufacturing organization, TQM generally starts by sampling a random selection of the product. The sam ple is then tested for things that matter to the real customers. The causes of any failures are isolated, secondary measures of the production process are designed, and then the causes of the failure are corrected. The statistical distributions of important measurements are tracked. When parts' measures drift out of the error band, the process is fixed. The error band is usually tighter than the failure band. The production process is thereby fixed before failing parts can be produced. It's important to record not just the measurement ranges, but what failures caused them to be chosen (Barfield 306). In that way, cheaper fixes can be substituted later, (say, when the product is redesigned), with no loss of quality. After TQM has been in use, it's very common for parts to be redesigned so that critical measurements either cease to exist, or become much wider. It took a while to develop tests to find emergent problems. One popular test is a "life test" in which the sample pr oduct is operated until a part fails. Another po... ...ld 318). The costs of a quality system must be managed so a reasonable value-to-price-relationship can be achieved. High quality will help a company increase profits through lower costs. It is critical that management focus on long term objectives instead of taking a limited outlook on growth and market share. The strategy of focusing on the customer and quality will equate to greater market share and higher profits. Reducing costs should be part of the continuous improvement process. Strategic cost management is the process of utilizing cost information to formulate and communicate strategies to all levels of the organization. A balance must be obtained to provide the customer with a quality product at a cost that provides for a profit for the company. The potential customer is becoming more and more conscious of quality. It makes sense for a business to cut their costs by improving the quality of the product thereby enhancing the appeal of a product or service in the market pla ce. The challenge is for each business to strive for the kind of business culture that will succeed in spite of the unknown and the unknowable. The quality management philosophy searches for this culture. TQM in Accounting Essays -- essays research papers Accounting 43 Cost Accounting Costs of Total Quality Management Submitted By: August 4, 2004 Morris De Rosa Total Quality Management or TQM is a management strategy to embed awareness of quality in all organizational processes. The philosophy of TQM goes back to the 1940’s when Dr. Deming started his quality endeavors in Japan. TQM is an approach for continuously improving the quality of goods and services delivered through the participation of all levels and functions of the organization. TQM aims to do things right the first time, rather fix problems after they emerge or fester. ‘TQM is a management philosophy which seeks to integrate all organizational functions (marketing, finance, design, engineering, production and customer service†¦) to focus on meeting customers’ needs and organizational objectives)’ (Hammett 1). TQM may operate within quality circles which encourage the meeting of minds of the workforce to improve production and reduce waste. In a manufacturing organization, TQM generally starts by sampling a random selection of the product. The sam ple is then tested for things that matter to the real customers. The causes of any failures are isolated, secondary measures of the production process are designed, and then the causes of the failure are corrected. The statistical distributions of important measurements are tracked. When parts' measures drift out of the error band, the process is fixed. The error band is usually tighter than the failure band. The production process is thereby fixed before failing parts can be produced. It's important to record not just the measurement ranges, but what failures caused them to be chosen (Barfield 306). In that way, cheaper fixes can be substituted later, (say, when the product is redesigned), with no loss of quality. After TQM has been in use, it's very common for parts to be redesigned so that critical measurements either cease to exist, or become much wider. It took a while to develop tests to find emergent problems. One popular test is a "life test" in which the sample pr oduct is operated until a part fails. Another po... ...ld 318). The costs of a quality system must be managed so a reasonable value-to-price-relationship can be achieved. High quality will help a company increase profits through lower costs. It is critical that management focus on long term objectives instead of taking a limited outlook on growth and market share. The strategy of focusing on the customer and quality will equate to greater market share and higher profits. Reducing costs should be part of the continuous improvement process. Strategic cost management is the process of utilizing cost information to formulate and communicate strategies to all levels of the organization. A balance must be obtained to provide the customer with a quality product at a cost that provides for a profit for the company. The potential customer is becoming more and more conscious of quality. It makes sense for a business to cut their costs by improving the quality of the product thereby enhancing the appeal of a product or service in the market pla ce. The challenge is for each business to strive for the kind of business culture that will succeed in spite of the unknown and the unknowable. The quality management philosophy searches for this culture.