Learning objective
Identify advantages to a business of using total quality management.
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Topic
The concept of quality
Subtopic
Maintaining quality
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Quick explanation
Identify advantages to a business of using total quality management
- This point belongs to The concept of quality, especially Maintaining quality.
- You need to be able to identify advantages to a business of using total quality management.
- The key ideas to know are total quality management.
- Use the linked flashcards and practice questions to check recall, then practise applying the idea in an exam-style answer.
Key concepts
Why it matters
This objective helps connect Maintaining quality to exam-style questions, flashcards, and revision notes for The concept of quality.
Quick student answer
Evaluate how the implementation of Total Quality Management could affect a small manufacturer’s profitability and market position.
Direct answer
Implementing TQM can lower defect rates, reducing rework and scrap costs, which directly improves gross profit. It also enhances product reliability, strengthening the brand and enabling the firm to command a higher market share or premium pricing. However, the initial investment in training, process redesign and quality tools can increase short‑term costs, and the benefits may take several months to materialise. Therefore, while TQM can boost long‑term profitability and competitiveness, the manufacturer must manage the transition period carefully.
How it works
The answer balances the positive effects (cost reduction, brand improvement, market share) with the potential short‑term costs and time lag, showing a nuanced evaluation.
Key terms
- Continuous improvement: An ongoing effort to enhance products, services or processes by making small, incremental changes that reduce waste, improve quality and increase efficiency.
Common trap
Thinking TQM guarantees zero defects: TQM reduces defect rates and variation but cannot eliminate all errors; it focuses on process improvement and defect prevention rather than perfect outcomes.
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Revision notestopic notes
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Open revision notesRelated learning objectives
- Explain customer expectations of quality in goods and services.
Quality expectations and problems
- Explain how businesses identify and measure quality problems.
Quality expectations and problems
- Explain consequences of quality issues for a business.
Quality expectations and problems
- Explain methods of maintaining consistent quality, including total quality management.
Maintaining quality
- Explain costs and benefits of maintaining quality, including sales, reputation, price, inspection, training and recalls.
Maintaining quality