Business Simulation Seminar Total Quality Management TQM

 Objective – improve quality in all facets of a business Administration R&D Production Support  A continual process of improvement

“Quality is Free”  Studies show that investments in quality improvements pay for themselves Savings in reduced guarantee expenses Savings in reduced re-work Savings in support costs Increased customer satisfaction

TQM  Embraced by standards bodies  International Standards Org., ISO ISO 9000 and ISO 9001  Six Sigma  These may have little to do with product or business success May be more about the organizations themselves

TQM and the Simulation  Each round can make investments in quality in: Administration Production efficiency Increased demand Reduced R&D times  Improvements depend upon investment <$500k – little improvement >$2M – get diminishing returns >$5M over 2-3 years gives no improvement