Essay about Contemporary Issues of Management Accounting

3921 Words Jul 11th, 2011 16 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,
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Facts and analysis provide the basis for planning, review and performance tracking, improvement of operations, and comparison of performance with competitors.

* Employee participation: A successful TQM environment requires a committed and well-trained work force that participates fully in quality improvement activities

* A TQM culture: It's not easy to introduce TQM. An open, cooperative culture has to be created by management. Employees have to be made to feel that they are responsible for customer satisfaction.

* Product development in a TQM environment: Product development in a TQM environment is very different to product development in a non-TQM environment. Without a TQM approach, product development is usually carried on in a conflictual atmosphere where each department acts independently.

Figure 4: Position of TQM in organization

II. Just In Time(JIT)

* ` Definition:
Just-in-time' is a management philosophy and not a technique.
It originally referred to the production of goods to meet customer demand exactly, in time, quality and quantity, whether the `customer' is the final purchaser of the product or another process further along the production line.

Figure 5: JIT functioning
It has now come to mean producing with minimum waste. "Waste" is taken in its most general sense and includes time and resources as well as materials. Elements

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