Assignment # 3: Submitted To

ASSIGNMENT # 3
Course Title: Cost and Management Accounting
Course Code: AF1213
Submitted To:
Sir Abid Noor
Submitted By:
Name: Ziyan Shahid
Reg no: L1F20BSAF0141
Date OF Submission:
6th June, 2021
“Total Quality Management”
Total Quality Management is an extensive and structured organization
management approach that focuses on continuous quality
improvement of products and services by using continuous feedback.
Total Quality Management principles:

TQM has a number of basic principles which can be converted to the
figure below.
Focus on customer:
When using TQM it is of crucial importance to remember that only
customers determine the level of quality. Whatever efforts are made
with respect to training employees or improving processes, only
customers determine, for example through evaluation or satisfaction
measurement, whether your efforts have contributed to the continuous
improvement of product quality and services.
Employee involvement:
Employees are an organization’s internal customers. Employee involvement in
the development of products or services of an organization largely determines
the quality of these products or services. Ensure that you have created a culture
in which employees feel they are involved with the organization and its products
and services.
Communication:
A communication strategy must be formulated in such a way that it is in line with
the mission, vision and objectives of the organization. This strategy comprises
the stakeholders, the level within the organization, the communications channels,
the measurability of effectiveness, timeliness, etc.
Continuous improvement
By using the right measuring tools and innovative and creative thinking,
continuous improvement proposals will be initiated and implemented so that the
organization can develop into a higher level of quality.
Tools of TQM
Total quality management (TQM) tools help organizations to identify,
analyze and assess qualitative and quantitative data that is relevant to
their business. These tools can identify procedures, ideas, statistics,
cause and effect concerns and other issues relevant to their
organizations. Each of which can be examined and used to enhance the
effectiveness, efficiency, standardization and overall quality of
procedures, products or work environment.
The following are some of the most common TQM tools in use today.
1) Pie Charts and Bar Graphs

Used to identify and compare data units as they relate to one issue or
the whole, such as budgets, vault space available, extent of funds, etc.
2) Histograms
To illustrate and examine various data element in order to make
decisions regarding them Effective when comparing statistical, survey,
or questionnaire results.
3) Run Chart
Follows a process over a specific period of time, such as accrual rates,

to track high and low points in its run, and ultimately identify trends,
shifts and patterns.
a) Pareto Charts / Analysis
Rates issues according to importance and frequency by prioritizing
specific problems or causes in a manner that facilitates problem
solving. Identify groupings of qualitative data, such as most frequent
complaint, most commonly purchased preservation aid, etc. in order to
measure which have priority.· Can be scheduled over select periods of
time to track changes. They can also be created in retrospect, as a
before and after analysis of a process change.
4) Force Field Analysis

To identify driving and restraining forces occurring in a chosen
process in order to understand why that particular process functions as
it does. For example, identifying the driving and restraining forces of
catering predominantly to genealogists. To identify restraining forces
that need to be eradicated, or driving forces that need to be improved,
in order to function at a higher level of efficiency.
5) Focus Groups
Useful for marketing or advertising organizations to test products on
the general public.
· Consist of various people from the general public who use and
discuss your product, providing impartial feedback to help you
determine whether your product needs improvement or if it should be
introduced onto the market.
6) Brainstorming and Affinity Diagrams

Teams using creative thinking to identify various aspects
surrounding an issue.
An affinity diagram, which can be created using anything from

enabling software to post-it notes organized on a wall, is a tool to
organize brainstorming ideas
.7) Tree Diagram
· To identify the various tasks involved in, and the full scope of, a
project.
· To identify hierarchies, whether of personnel, business structure, or

priorities.
· To identify inputs and outputs of a project, procedure, process, etc
.8) Flowcharts and Modeling Diagrams
· Assist in the definition and analysis of each step in a process by

illustrating it in a clear and comprehensive manner.
· Identify areas where workflow may be blocked, or diverted, and

where workflow is fluid.
· Identify where steps need to be added or removed to improve

efficiency and create standardized workflow
.9) Scatter Diagram
· To illustrate and validate hunches
· To discover cause and effect relationships, as well as bonds and

correlations, between two variables
· To chart the positive and negative direction of relationships
10) Relations Diagram
· To understand the relationships between various factors, issues,

events, etc. so as to understand their importance in the overall
organizational view.
Advantages of Total Quality Management
The advantages of total quality management (TQM) include the

following:
 Cost reduction :
When applied consistently over time, TQM can reduce costs
throughout an organization, especially in the areas of scrap, rework,
field service, and warranty cost reduction. Since these cost
reductions flow straight through to bottom-line profits without any
additional costs being incurred, there can be a startling increase in
profitability.
 Productivity improvement :
Productivity increases significantly, since employees are spending
much less of their time chasing down and correcting errors.
Increased productivity means more output per employee, which
typically results in increased profits.
 Customer satisfaction :
Since the company has better products and services, and its
interactions with customers are relatively error-free, there should be
fewer customer complaints. Fewer complaints may also mean that
the resources devoted to customer service can be reduced. A higher
level of customer satisfaction may also lead to increased market
share, as existing customers act on the company's behalf to bring in
more customers.
 Defect reduction :
TQM has a strong emphasis on improving quality within a process,
rather than inspecting quality into a process. This not only reduces
the time needed to fix errors, but makes it less necessary to employ
a team of quality assurance personnel.

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ASSIGNMENT # 3

Course Title: Cost and Management Accounting

Course Code: AF1213

Reg no: L1F20BSAF0141

Total Quality Management principles:

1) Pie Charts and Bar Graphs

Follows a process over a specific period of time, such as accrual rates,

4) Force Field Analysis

6) Brainstorming and Affinity Diagrams

An affinity diagram, which can be created using anything from

.7) Tree Diagram

· To identify hierarchies, whether of personnel, business structure, or

· To identify inputs and outputs of a project, procedure, process, etc

.8) Flowcharts and Modeling Diagrams

· Assist in the definition and analysis of each step in a process by

· Identify areas where workflow may be blocked, or diverted, and

· Identify where steps need to be added or removed to improve

· To illustrate and validate hunches

· To discover cause and effect relationships, as well as bonds and

· To chart the positive and negative direction of relationships

10) Relations Diagram

· To understand the relationships between various factors, issues,

Advantages of Total Quality Management

The advantages of total quality management (TQM) include the

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