Total Quality Management Essay Example | Topics and Well Written Essays - 1000 words

Total Quality Management - Essay ExampleIt is implied that salute of lumber needs to be taken into consideration before deciding on a firms plans for ensuring the tonicity of its products/ services. In other words, extremely noble cost of quality can threaten a companys health either in the short or the long term. Cost of quality can be used as an indicator of a companys health. This fact is verified through the following example a series of firms operating in the manufacturing industry of Malaysia decided to establish a Cost of Quality (COQ) Reporting System (Rasamanie and Kanagi 243). It was expected that this initiative would help these firms to improve their performance (Rasamanie and Kanagi 247). Indeed, the implementation of the in a higher place system resulted to a series of important benefits in regard to these firms performance. The benefits achieved for the firms participating in this project are presented in Table 1 below. Table 1 Benefits resulted because of the im plementation of the COQ Reporting System in manufacturing firms in Malaysia (Rasamanie and Kanagi 247) It is clear from the data presented in Table 1 higher up that the implementation of COQ Reporting System in Malaysian manufacturing firms enhanced their performance. ... The potential use of quality cost for measuring a companys health can be understood if referring to the elements of cost of quality. Haryanto (186) noted that the cost of quality includes four different types of costs Prevention cost, Appraisal cost, Internal Failure cost and External Failure Cost (Haryanto 186). These costs, to each one of which incorporates a series of sub-costs (Table 2 below), can be used for identifying the performance of a company in regard to its various sectors/ departments. In this way, the cost of quality helps to measure and evaluate a companys health. If costs related to one or more of the firms operations are high this fact is considered as a negative indicator for the companys healt h. Table 2 Elements of Quality Costs (Blocher, Chen and Lin 176 in Haryanto 186) The relationship amid quality of cost and a companys health is reflected in the Acceptable Quality View, an approach for deciding on a firms optimum quality cost (Haryanto 188-189). The Acceptable Quality View is based on the assumption that there is a trade off between visualize costs and failure costs (Haryanto 189). In a healthy company, failure costs would be reduced as the control costs are increase (Haryanto 189). The above trend is presenting in Graph 1 below. Graph 1 AQV Quality costs graph (Haryanto 189) Question 2 A customer goaded quality circle would include the parts indicating in Graph 2 below. The parts of the graph are based on the study of Reis and Pena (2000). According to the above researches, a customer driven organization focuses on the creation of a customer-driven organizational culture (Reis and Pena 43). In this context, a customer