Define the total quality management, Financial Management

Assignment Help:

a) An approx. 3% defect rate (i.e. 0.03 x 300m units) = 9m units per year.

b) A apparent definition of Quality Assurance should be awarded, e.g. the management process of guaranteeing (assuring) the consumer of a product's quality. This guarantee can be secured by meeting international quality standards such as the ISO 9000. QA is important to Durex for several reasons, including:

  • Condoms must be fit for their purpose, perhaps more so than for most products (for safety and health issues and to prevent unwanted pregnancies, for example)
  • QA aims to eliminate/reduce defects thereby giving customers a sense of security (peace of mind) in purchasing the product
  • Quality assurance will undoubtedly affect the corporate image and reputation of Durex
  • QA can help Durex to maintain to prevent brand switching and customer loyalty (Durex has 25% market share only)
  • QA can be a form of product differentiation for Durex, thereby improving its competitiveness
  • QA helps to decrease wastage, therefore raising profit margins

Any two valid factors, explained in the context of Durex, would warrant maximum marks.

c) An appropriate definition of TQM should be awarded: the belief in and process of removing inefficiencies and wastage in all forms of business activities, requiring the commitment of everyone in the business to achieve quality standards. Features of TQM that might help Durex to reduce its 3% defect rate include:

  • TQM aims for zero defects - perhaps a defect rate of 3% (or 9m units) is rather too high for this kind of product
  • Testing - tests such as the artificial ageing of condoms or the air/water pressure tests are key aspects of TQM
  • 'Right first time' culture - helps to decrease defect rates
  • TQM involves the workforce (e.g. empowerment, motivation and responsibility) striving for reduced or zero defects
  • Since all workers are accountable for quality control and QA, substandard products are less likely to occur
  • The role of CAM/CAD/automation in reducing defect rates could also be outlined.

Related Discussions:- Define the total quality management

Investment decision and financing decision, The Investment Decision: - Inv...

The Investment Decision: - Investment decision as well known as 'Capital Budgeting' is related to the selection of long-term assets or else projects in which investments will be m

Debt finance, Ask queswtion #Minimum 100 words accepted# what are the chara...

Ask queswtion #Minimum 100 words accepted# what are the characteristics of debt finance? What are the similarities and differences between debt finance and ordinary share capital

Can you explain about overdrafts, Q. Can you explain about Overdrafts? ...

Q. Can you explain about Overdrafts? Overdraft means an agreement with a bank by which a current account-holder is allowed to withdraw more than the balance to his credit up to

Calculate amount of first coupon payment your organization, Your firm has p...

Your firm has presently issued five year floating-rate notes indexed to six-month U.S. dollar LIBOR plus 1/4%.  What is the amount of first coupon payment your organization will pa

Benefits of mentoring for new members of staff, JB has recently joined the ...

JB has recently joined the Finance Department of P Company as a trainee management accountant. As part of the Company's induction, she has been offered a mentor. Though, since JB h

ASSIGNMENT, Assume that we have the following data: C=100+0.50Y Ip=100-20r...

Assume that we have the following data: C=100+0.50Y Ip=100-20r Mt=0.10Y Ms=100-10r M=80 a. Build the IS-LM function. b. If we assume an increase in Investments by 100 units, p

Accounts, XYZ Ltd is a group of doctors, dentists, professional sports play...

XYZ Ltd is a group of doctors, dentists, professional sports players and celebrities with excess funds who wish to find small companies with great innovative ideas and invest in th

Define leveraged buyout, What is an LBO?  What are the risks for the equity...

What is an LBO?  What are the risks for the equity investors and what are the potential rewards? A term leveraged buyout is a purchase of a publicly owned corporation through a s

Explain profit maximization approach, Q. Explain Profit Maximization Approa...

Q. Explain Profit Maximization Approach? (i) Best Criterion on Decision-Making:- The goal of revenue maximization is regarded as the best criterion of decision-making as it off

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd