Contemporary Issues of Management Accounting

2 Reduced waste: With improved systems there would be reduction in waste and fewer defects in the products. This will help in adding to the profits. Logistical improvements will help in better organisation of physical space required and viable transportation and reduction in the waiting times for the materials required, thus giving lesser room for wasting time.

Optimization of machinery so that production setups are not required for small customizations which can be managed manually.

Arumugam, V., Chang, H., Ooi, K., and Teh, P. (2009). "Self-assessment of TQM practices: a case analysis", The TQM Journal, 21(1), 46 – 58. Retrieved from http://www.emeraldinsight.com.ezproxy.liberty.edu:2048/journals.htm?articleid=1766744&show=abstract#sthash.TkDGZoZ7.dpuf

* Total quality management (TQM): This model is concerned with the performance of all processes in an organisation, and the products and services that are the outcomes of those processes. It seeks continuous improvement and will involve everyone in the quest for quality.

a cut in the time to perform each task which impacts the time and cost of the production. This

Speedup time to market. Because there are more people involved the process of innovation is faster

The amount of work in progress is minimized. Fewer tools are needed. The parts do not have to travel between the work stations. The control systems becomes redundant, everything takes place in the garage.

Sort/segregate the work area to keep what is needed and to remove any items that are not valuable in the production process, which in turn creates space and improves work flow.

Organizing something into a logically coherent system. Factory organization is often rationalized to make it as efficient as possible.

In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work” (ASQ, 2016). TQM can be used based off eight (8) key elements that most if not all companies use. The key elements are customer-focused, total employee involvement, process-centered, integrated system, strategic and systematic approach, fact-based decision making and lastly communication. The first element of TQM is the most important element, which is the customer.

By reducing the introduction of new products, cost such as product development, R&D and advertising can be avoided.

The manufacturing cost can be lower as the rearrangement of the production line to meet urgent order can be minimize or even eliminated.

• Greater floor space availability for expansion and focused usage due to reduced inventory quantities

Total Quality Management (TQM) is an improvement tool that is widely used in many companies. It consists of many aspects including Managing people as well as business processes in order to maintain customer satisfaction. With TQM, Businesses starts to do the right thing from the start and to ensure zero error. Therefore, it is important to learn the principle of TQM and how it acts in organizations with its advantages and disadvantages.

Once the actions are implemented, the company 's interest to survey their performance. The main advantage is the ability to adjust or stop an action if the expected results are not there to avoid a dramatic failure.