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Total quality management

Total quality management (TQM) embeds quality improvement throughout the whole organisation rather than limiting it to end-of-line inspection. The goal is to prevent defects rather than detect them, involving every function and supplier.

ByHoang TruongUpdated

FrameworkTQM

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Total quality management rests on four pillars rather than one inspection department: customer focus, where quality is defined by what customers value; continuous improvement, the kaizen habit of always finding another gain; employee involvement, since front-line staff spot waste first; and supplier quality, treated as part of the same system.

Where it fits
SubjectCost AccountingAdvancedTopicStrategic & Lean Cost ManagementAdvanced

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PracticeCORE

A medical device manufacturer adopts TQM. Two years later, annual prevention spending has risen by €120,000. Internal failure costs (rework and scrap) have fallen by €350,000 per year and external failure costs (warranty claims and product recalls) have fallen by €180,000 per year. What is the net annual financial impact of the TQM initiative?

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