Total Quality Management:

Total Quality Management:

CIMA has defined TQM as “Continuous improvement in quality, productivity and effectiveness obtained by establishing management responsibility for process as well as output. In TQM, every process has an identified process owner and every person in an entity operates within a process and contributes to its improvement”.

TQM initiates total quality cost programme., they are as follows:

(a) Prevention cost which is incurred in preventing of producing the product that do not conform to specification.

(b) Appraisal cost is incurred for detecting the individual product which do not conform to specification.

(c) Internal failure cost which is incurred before non-conforming product moves to customers.

(d) External failure cost which is incurred in detecting the non-conforming products after passing to customers.