Contemporary Issues of Management Accounting

3915 WordsJul 3, 201116 Pages
I. Total Quality Management(TQM) * Definition: TQM is a set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements. TQM places strong focus on process measurement and controls as means of continuous improvement. TQM functions on the premise that the quality of products and processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by an organization. In other words, TQM capitalizes on the involvement of management, workforce, suppliers, and even customers, in order to meet or exceed customer expectations. Considering the practices of TQM as discussed in six empirical studies, Cua,…show more content…
* Devising systems to identify problems. * Striving for simplicity - simpler systems may be easier to understand, easier to manage and less likely to go wrong. * A product oriented layout - produces less time spent moving of materials and parts. * Quality control at source - each worker is responsible for the quality of their own output. * Poka-yoke - `foolproof' tools, methods, jigs etc. prevent mistakes * Preventative maintenance, Total productive maintenance - ensuring machinery and equipment functions perfectly when it is required, and continually improving it. * Eliminating waste. There are seven types of waste: * Waste from overproduction. * Waste of waiting time. * Transportation waste. * Processing waste. * Inventory waste. * Waste of motion. * Waste from product defects. * Good housekeeping - workplace cleanliness and organization. * Set-up time reduction - increases flexibility and allows smaller batches. Ideal batch size is 1item. Multi-process handling - a multi-skilled workforce has greater productivity, flexibility and job satisfaction. * Leveled / mixed production - to smooth the flow of products through the factory. * Kanbans - simple tools to `pull' products and components through the process. * Jidoka (Autonomation) - providing machines with the autonomous capability to use judgment, so workers can do
Open Document