Showing posts with label Characteristics: Management Accounting. Show all posts
Showing posts with label Characteristics: Management Accounting. Show all posts

Tuesday, 25 November 2014

Characteristic of Total Quality Management


Characteristic of Total Quality Management

In total quality management the quality is maintained through a structure system and every process is performance with a perfection to achieve an overall objective i.e. to produce quality product as per the expectation of the customers.

1. Customer is important: In Total quality management customer satisfaction is considered to be the most important aspect of for a successful business and therefore customer is provided with the best possible product at reasonable price. It is essentials for Organization to meet the customer expectation /demand in best way due to high competitive markets.

2. Internal control: A proper internal control system is operating to ensure that each department is performing the work with perfection and transferring the quality goods to other departments for further processing.

3. Prevention approach:  defect is the product are prevented rather than detected and corrected. it is proven that defect correction involve many cost and it is also damaging for the image of organization, therefore defect must be prevented rather than corrected.

4. Roles and responsibility: Roles and responsibility for quality management are defined at all level and everyone within organization knows its role for the quality insurance. Clarity of roles is helpful to establish the responsibility for poor quality.

5. Zero Defects Policy: Policy of zero defects is in place within organization and defects are not tolerated. In other word there must be a zero tolerance level for defects. This policy is an effective controlling tool for poor performance or irresponsible behavior during the process of production.

6. Wastage Elimination: total quality management believes in effective utilization of resources without any wastage. It is to be noted that an allowance of expected or normal loss is made but there is no provision for any loss above that normal or expected loss.

7. Right thing First time: Total quality management ensures that goods are manufacture without defect at at first place and there is no feeling within organization that fault may be corrected later. Relevant procedures and policies must be in place to ensure the right product at first time.


8. Emphases on costs: There must be cost emphases within organization that there are number of cost attached with poor quality and therefore quality must be ensured to save those costs. Costs emphases are required to establish a control environment within organization.

Monday, 24 November 2014

Why Quality Management is required

Why Quality Management is required

The world has moved from quantity to quality and customer is more quality conscience in the modern world. The customer is interested in high quality products and therefore organizations are required to maintain a high quality standard.

What is the meaning of quality?

Quality means that to do a job excellently. It is important to note that quality is quiet a subjective thing and therefore are number of factor involved while deciding the quality.

What is quality management process?

The quality management involves the following processes

1. Establish Standard

The first step is to establish the quality standard that is required to be met. A care must be exercised while establishing the standard because unrealistic standard not only will not be met but also de motivation factor within organization.

2. Methods and procedures

The second step to establish required methods and procedures to ensure that established standard are met. In first step we decided what to achieve and in this step we look that how to achieve. It is impossible to achieve the required standard without popper methods and procedures.

3. Monitoring

The third step is the monitoring of actual performance as per required standards. Organization must also step a proper structure of monitoring the performance in context of set standards. The results of performance must be appropriately recorded and analyzed. A proper report must be prepared for management use.

4. Control
The final stage is to control action .the control action is based on the on the monitoring reports. It must be noted that control is a continuous process and



Example of Quality process

1. Set Standard

ABC company has established a standard that customer complains will be sorted out within 24 hours.

2. Establishing Standard

Company may be set the following methods and procedures to met the standard
·         Timely complains are recorded
·         Complaints are communicated to technical teams
·         Appropriate resources are available. human resource, etc
·         Technical team reporting procedure from the fault site

3. Monitoring

The organization must monitor the actual problem solving be the technical team. This can be observed by
·         Preparing the problem solving reports
·         Direct inquiry from the customer who lodged the complaints.

4. Control

The management will take appropriate control action to improve the performance. The control action is based on the monitoring results produced during the monitoring of the actual performance and comparison thereof with the standards.