Total quality management
Total quality management is an organisation-wide approach to meeting customer requirements through prevention, continuous improvement and involvement across functions. Quality is built into processes rather than treated solely as final inspection. Measures should consider defects, rework, responsiveness and customer outcomes together with cost. Narrow standard-cost targets can conflict with TQM if they reward cheap inputs or large batches while ignoring waste, quality and time.
Worked example
Purchasing, production and service teams jointly reduce defect causes and track first-time-right output and complaints, rather than rewarding purchasing only for lower invoice prices.
Common mistake
TQM is not merely a quality department, a certificate or inspection of every finished unit.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |
| ACCA | MA | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |