1. F2 - DEVELOPING A QUALITY CULTURE

2. Quality assurance systems
Total quality management (TQM)
Definition: an approach to long-term success that aims for improvement continually throughout every functional area of a business. It is seen as a long-term process and if done correctly it should transform the organisation through changes in attitudes, practices, structures and systems
A culture of quality that involves all employees in a firm
‘Getting it right first time’ is the key
This system can reduce cost considerably because of reduced wastage costs
TQM allows for a consistent and flexible approach to quality
Consistent quality can affect price because if products have a reputation for quality then businesses can charge higher prices for them

3. Total Quality Management ("TQM")
This is a specific approach to quality assurance that aims to develop a quality culture throughout the firm. In TQM, organisations consist of 'quality chains' in which each person or team treats the receiver of their work as if they were an external customer and adopts a target of 'right first time' or zero defects.

4. Total Quality Management Benefits
Strengthened competitive position
Increased customer loyalty and retention
Adaptability to changing or emerging market conditions and to environmental and other government regulations
Increased job security
Improved employee morale
Enhanced shareholder and stakeholder value
Higher productivity
Enhanced market image
Improved and innovative processes
Elimination of defects and waste
Reduced costs and better cost management
Higher profitability
Improved customer focus and satisfaction

5. Total Quality Management Issues
However, TQM also requires a significant training period for those employees involved in it. Since the training can take people away from their regular work, this can actually have a negative short-term effect on costs. Also, since TQM tends to result in a continuing series of incremental changes, it can generate an adverse reaction from those employees who prefer the current system, or who feel that they may lose their jobs because of it.
TQM works best in an environment where it is strongly supported by management, it is implemented by employee teams, and there is a continual focus on process improvement that prevents errors from occurring.