Many large scandals within the last decade have made companies rethink the importance of total quality management as a competitive advantage. Total quality management is an alternative cost management technique that relies on the principle that prevention costs are less than the cost of correction. It encourages companies to get things right by having zero defects and continuously improving their goods and services. If well implemented, it affects many business areas such as product designing to ensure customer-defined quality and demands are met. This makes sure an item remains popular within its market and also attracts newer markets.
This discussion will rely on the adoption of TQM in the technology industry. TQM, when employed consistently for longer periods, changes the culture of a business. Employees focus on quality management, therefore continuously increasing their skills, standards, innovation, and creativity to meet consumers' demands. This leads to a culture that focuses on the quality and development of better products throughout the firm, ultimately increasing the brand value and reputation of a company.
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TQM also leads to reduced operational costs of a business. The focus on continuous improvement leads to innovative and creative solutions to problems and operations in general. The amount of money spent on scraps, warranty costs, field servicing, and rework reduces greatly. Samsung lost a lot of money, amounting to more than 1.3 billion dollars and consumers' confidence in several markets as a result of the 2016 Galaxy Note 7 recall (Thomas et al., 2017). Several phones exploded due to faulty batteries from its suppliers. A quality management process is one of the recommendations that the company sought to implement, thus avoid future related scandals.
Response to Kimberley Harris
Cost management is essential for large projects such as construction projects. I have seen buildings in my neighborhood that halted activity midway due to financial reasons. Thus, it is essential to ensure costs remain within the budget. Assigning employees to the right job is critical in ensuring this is achieved because knowledge and experience make one know which areas to focus on instead of burning money on all ends.
References
Thomas, E., Zeron, A., & O’Rourke, J. (2017). Samsung Electronics Company, Ltd: Galaxy note 7 crisis. Mendoza College of Business, University of Notre Dam e. https://doi.org/10.4135/9781526489043
