The Implementation of Total Quality Management in Controlling the Cost of Manufacturing

Purpose - Total Quality Management (TQM) has received sig-nificant attention and interest from a large number of organ-izations around the world in various industries. These organ-izations have tried to embody TQM concepts in areas such as engineering and product design, marketing, R&D, procurement, production, personnel, and product inspection. Research design, data, and methodology - This study pres-ents an overview of the fundamentals of TQM and an in depth review of the obstacles to the successful implementation of TQM. Results - In order to control the cost of manufacturing, the tracking of the cost of quality (COQ) allows companies to cap-ture the actual overall cost incurred in producing a unit of prod-uct or service. The study explores the reasons why companies track the COQ and ways to address it. Conclusions - Based on the results, COQ is one of the key performance indicators for making more accurate strategic deci-sions as well as a critical aspect of TQM. The study also pres-ents a few popular quality improvement tools that have been widely used in organizations successfully implementing TQM.