...TOTAL QUALITY MANAGEMENT PRACTICE IN SMALL AUDIT FIRMS IN NIGERIA CHAPTER ONE INTRODUCTION 1.1 Background of the study Total quality management (TQM) practices in small audit firms have had accounting antecedence. The concept can be traced back to early 1920 production control idea notably, the concept developed in the late 1940’s and 1950’s, pioneered by American Feigenbaum, Deming and Juran. The concept total quality management (QTM) has many definitions. The gurus of total quality management discipline like Deming, Juran, Crosby, Ishikawa and Feigenbaum defined the concept in different ways, but still the essence and spirit remained the same. According to Deming, quality is a continuous improvement process towards predictable degree of uniformity and dependability. He identified fourteen principles of quality management to improve productivity and performance of an organization. Juran defined quality as “fitness for use”. According to him, every person in an organization must be involved in the effort to make products or services that are fit for use. Crosbly defines quality as conformance to requirement. His focus was on zero defects and doing it right the first time. Ishikawa also emphasized importance of total quality control to improve organizational performance. According to him, quality does not only mean the quality of products but also of after sale services, quality of managing the company itself and the human life. Feigenbaum defined total quality management...
Words: 8701 - Pages: 35
...931 –951 RESEARCH PAPER Total quality management (TQM) strategy and organisational characteristics: Evidence from a recent WTO member Dinh Thai Hoanga, Barbara Igelb∗ and Tritos Laosirihongthongc a University of Economics, Hochiminh City, Vietnam; bSchool of Management, Asian Institute of Technology, Pathumthani 12120, Thailand; cIndustrial Engineering Department, Faculty of Engineering, Thammasat University, Pathumthani 12121, Thailand This paper presents a comparative study on the relationship between implementing total quality management (TQM) and organisational characteristics (size, type of industry, type of ownership, and degree of innovation) in a newly industrialised country in South East Asia. Vietnam has become the 150th member of the World Trade Organisation (WTO) since January 2007, and this is the first empirical study to examine TQM practices in Vietnam. Analysis through Structural Equation Modelling, t-test and MANOVA of survey data from 222 manufacturing and service companies produced three major findings. First, this study supports previous research findings that TQM can be considered as set of practices. Second, industries in Vietnam have deployed certain TQM practices (customer focus and top management commitment) at much higher levels than others, namely information and analysis system, education and training, employee empowerment, and process management. Finally, MANOVA shows a clear difference in TQM practices by company size, industry type, and degree...
Words: 10649 - Pages: 43
...931 –951 RESEARCH PAPER Total quality management (TQM) strategy and organisational characteristics: Evidence from a recent WTO member Dinh Thai Hoanga, Barbara Igelb∗ and Tritos Laosirihongthongc a University of Economics, Hochiminh City, Vietnam; bSchool of Management, Asian Institute of Technology, Pathumthani 12120, Thailand; cIndustrial Engineering Department, Faculty of Engineering, Thammasat University, Pathumthani 12121, Thailand This paper presents a comparative study on the relationship between implementing total quality management (TQM) and organisational characteristics (size, type of industry, type of ownership, and degree of innovation) in a newly industrialised country in South East Asia. Vietnam has become the 150th member of the World Trade Organisation (WTO) since January 2007, and this is the first empirical study to examine TQM practices in Vietnam. Analysis through Structural Equation Modelling, t-test and MANOVA of survey data from 222 manufacturing and service companies produced three major findings. First, this study supports previous research findings that TQM can be considered as set of practices. Second, industries in Vietnam have deployed certain TQM practices (customer focus and top management commitment) at much higher levels than others, namely information and analysis system, education and training, employee empowerment, and process management. Finally, MANOVA shows a clear difference in TQM practices by company size, industry type, and degree...
Words: 10649 - Pages: 43
...UNIVERSITI TEKNOLOGI MARA, SHAH ALAM FACULTY OF BUSINESS MANAGEMENT MASTERS OF BUSINESS ASMINISTRATION (BM 770) MANAGERIAL ACCOUNTING (ACC 770) INDIVIDUAL ASSIGNMENT: CONTEMPORARY MANAGERIAL ACCOUNTING (CONCENTRATION AREA: TOTAL QUALITY MANAGEMENT) PREPARED BY: STUDENT ID.: PREPARED FOR: NURWAHIDA BT. MOHD. YAAKUB 2009782101 DR. AZIZAH BT. ABDULLAH SUBMISSOION DATE: 10 FEBRUARY 2010 Table of Contents Contents Chapter One: Introduction to Contemporary Managerial Accounting Concepts 1. 2. Value Chain a. Just in Time (JIT) b. Total Quality Management (TQM) c. Theory of Constraints 3. 4. 5. 6. 7. 8. 9. Target Costing Kaizen Costing Life Cycle Costing (LCC) Pricing Methods Uses and Limitations of Cost-Based and Market-Based Pricing Factors Affecting Prices Pricing Models for Not-for-Profit Organizations 3 4 5 5 6 7 8 9 10 11 11 Page Chapter Two: Total Quality Management (TQM) – an Introduction and Its Applications Chapter Three: Conclusion Appendix 1: References 12 23 CHAPTER ONE: INTRODUCTION TO CONTEMPORARY MANAGERIAL ACCOUNTING CONCEPTS Over the years, the managerial accounting practices had evolved. From the traditional costing method, many firms now have adopted the contemporary managerial practices to achieve better product costing and manufacturing processes. There are many contemporary managerial accounting in practice, some of them being Value Chain, Just-In-Time (JIT) Manufacturing, Total Quality Management (TQM) and the Theory of Constraints (TOC). All...
Words: 6580 - Pages: 27
...Camry sedans, which would replace the bulk of Japanese imports of the same model. In 1992, TMM was expected to supply 240,000 of all the new Camry’s, whose sales were up by more than 20% since the model change in fall 1991. The new Camry joined the ranks of midsize family sedans, with constituted one third of the total American car market and returned an average 17% pretax profit margin on margin on a sticker price averaging $18,500. For the first time, in March 1992, TMM started producing wagon versions of the new Camry exclusively within Toyota’s worldwide plant network. Total Quality Management (TQM) Total quality management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes. TQM functions on the premise that the quality of products and processes is the responsibility of everyone who is involved with the...
Words: 2370 - Pages: 10
...TQM MODELS MUHAMMAD ASIF TQM • It is the process of individual & organizational development the purpose of which is to increase the level of satisfaction of all the stakeholders PIKE, R J BARNES Why TQM? Because it is for benefit of all stakeholders TQM FRAMEWORK (DALE & BOADEN) TQM MODEL (OAKLAND) AMERICAN AND EUROPEAN APPROACHES TO TQM • In USA & Europe Senior mngmnt. has a morbid fascination with share prices. • They feel pressure to meet short term six monthly targets of interim and annual reports, which are widely publicized and scrutinized. • Every time a report or statement is made, they must show healthy results. • Share prices concern hangs like a sword over heads • The tendency is to look for instant results and quick fixes. If results are not readily apparent then move to next solution (Fad). • The Japanese, however, know that success is rarely an overnight phenomenon • TQM implementation requires a total change in the thinking and a major change in culture • Takes years to internalize. • With some organizations, because results, are not instant, TQM has lost favor • Even where some positive results become apparent in short time, they don't seem to be major USE OF THE FRAMEWORK 1. Review the organizations adoption of TQM to date 2. Customize the framework to suit to individual organization 3. Present & debate the customized framework 4. Assess which features of framework are already in place USE OF THE FRAMEWORK (Cont.) 5. Prioritize...
Words: 515 - Pages: 3
...ever-growing demands of the customers. It's a well known fact that no business can exist without customers. Organizations need to retain existing customers while targeting non-customers as well. In today's business environment firms strategic priorities is to examine their business practices and to evaluate how to meet the challenges in facing competition in domestic and international market. Quality improvement has become a pervasive element of business strategy, allowing some companies to respond to increasing competitive pressures.Competitive strategy is concerned with how a company can gain a competitive advantage through a distinctive way of competingTotal Quality Management (TQM) is a structured system for meeting and exceeding customer needs and expectations by creating organization-wide participation in the planning and implementation of breakthrough and continuous improvement processes. It integrates with the business plan of the organization and can positively influence customer satisfaction and market share growth.Total quality management is a management system for a customer focused organization that involves all employees in continual improvement of all aspects of the organizationTop management crafts its strategy and operations around customer needs and develops a culture with high employee participation engaging all divisions, departments and levels of the organization as well.The Total Quality Management (TQM) concept has the potential to integrate all the improvement philosophies...
Words: 1986 - Pages: 8
...Thomas Haug Work Improvement Method School of Professional Studies GBA603 – Organizational Theory Dr. Steven Englehart May 30, 2015 The origins of total quality management are uncertain, however, research has traced the theory of quality control back to the early 1920s when statistical analysis was used in conjunction with quality control. Walter A. Shewhart developed a statistical control chart in 1923 while working at Bell Telephone; although it wasn’t implemented until three years later at plant for Western Electric (Total Quality Management). The actual method of total quality management as a management approach was introduced in the 1950s. Originally the process of TQM utilized the concept specifically dealing with product inspection and production but today it has transformed into a method that can be applied to analyze all of the operations within an organization. The process of total quality management was first established after WWII when Japanese manufacturers started to make civilian goods instead of military equipment (Total Quality). Having a reputation as the country with the most inferior exports, Japan welcomed outside help from American quality experts, specifically W. Edwards Deming. Instead of focusing on the process of product inspection, Japanese manufacturers focused on improving all of the procedures through their workers. The Japanese were able to transform their negative reputation by increasing the quality and decreasing their prices. American...
Words: 1174 - Pages: 5
...Quality Management a Competitive Advantage in a Global Market Total Quality Management (TQM), Six Sigma, and International Standards Organization (ISO), are three of the processes or tools organizations need to compete and give them a competitive advantage in the global market of today and that will allow them to keep up with the ever changing World market in the future. Total Quality Management (TQM) is a philosophy that says that uniform commitment to quality in all areas of an organization promotes an organizational culture that meets consumers' perceptions of quality. The concept of TQM rests largely on five principles: • Produce quality work the first time. • Focus on the customer. • Have a strategic approach to improvement. • Improve continuously. • Encourage mutual respect and teamwork. To be effective in improving quality, TQM must be supported at all levels of an organization, from the highest executive to the lowest-level hourly employee. TQM extends the definition of quality to all functional areas of the organization, including production, marketing, finance, and information systems. The process begins by listening to customers' wants and needs and then delivering goods and services that fulfill these desires. TQM even expands the definition of customer to include any person inside or outside the company to whom an employee passes his or her work. In an assembly plant, for example, the warehouse supplies its customer, which is the line operator of...
Words: 3133 - Pages: 13
...Massachusetts Institute of Technology Cambridge, MA USA 02139 Tel. 617 253-8540 bozdogan mit.edu ESD-WP-2010-05 August 2010 esd.mit.edu/wps TOWARDS AN INTEGRATION OF THE LEAN ENTERPRISE SYSTEM, TOTAL QUALITY MANAGEMENT, SIX SIGMA AND RELATED + ENTERPRISE PROCESS IMPROVEMENT METHODS Kirkor Bozdogan # Center for Technology, Policy and Industrial Development, Massachusetts Institute of Technology, Cambridge, MA USA 02139 August 5, 2010 Key Words: Lean manufacturing; just-in-time-production (JIT); Toyota Production System (TPS); lean enterprise system; total quality management (TQM); six sigma; lean six sigma; theory of constraints (TOC); agile manufacturing; business process reengineering (BPR); enterprise change and transformation; evidence-based management practices Abstract: The lean enterprise system, total quality management, six sigma, theory of constraints, agile manufacturing, and business process reengineering have been introduced as universally applicable best methods to improve the performance of enterprise operations through continuous process improvement and systemic planned enterprise change. Generally speaking, they represent practice-based, rather than theory-grounded, methods with common roots in manufacturing....
Words: 10496 - Pages: 42
...TQM and Performance in small medium enterprises The mediating effect of customer orientation and innovation 1. Literature Review The relationship between total quality management and performance The instrumental Role played by TQM in the assessment of production activities, in the standardization of processes and training, in competitive benchmarking, in measuring results and in increasing employee accountability has had the net effect of bringing down costs of defects and rework, reducing supervision and maintenance costs, managing inventory levels and stimulating innovation. Proponents of TQM maintained that if organizations of any size implemented it efficiently, they may generate many benefits including high quality products, reduced costs, improved communications, team work, customer and employee satisfaction and improved financial performance. It was found that firms which had effectively implemented a TQM environment outperformed non-TQM firms on measures such as profitability, revenues, costs, capital expenditure, total assets and employee turnover. Therefore, it is hypothesized that : H1. The higher the total quality management (TQM) implementation, the greater the performance of the firm. The relationship between TQM and consumer orientation Improving quality by itself is not sufficient, what matters is enhancing the customer’s perception of quality. This is particularly important since many quality improvement efforts have been criticized...
Words: 1596 - Pages: 7
...Chapter - 1 Concept of Quality and TQM Dr. Shyamal Gomes “Quality is not an art, it is a habit” - Aristotle Introduction: Till 300 years ago, people used the power of their own muscles, animals or the force of wind and flowing water to do all works. With the invention of the ‘steam engine’ they got a powerful method of running their machines. This provided a tremendous boost to Industry. Goods started getting produced in larger quantities using machines. This led to the beginning of the factory system. The significant change from handmade goods to machine-made goods, which began in Britain in 18th century, is known as the Industrial Revolution. Why it was called Revolution? Because of the large scale changes it brought about our economy, society and culture. IR soon spread to other nation like Germany, France, Portugal. As these countries became industrialised, they needed two things: 1. Raw materials for manufacturing and 2. New markets to sell the goods they made. They found both raw materials as well as new markets to sell their goods in the nonindustrialised countries of Asia and Africa. So they started annexing to meet the needs of their new factories. Soon they became jealous of each other, and wanted their own empires to grow. They started fighting among themselves. This finally led to a great war in which several nations of the world were involved. It came to be known as World War- I (August 1914-1918). Millions of soldiers and other people were killed or wounded...
Words: 3905 - Pages: 16
...CHAPTER ONE INTRODUCTION One of the most important industries in Nigeria is the food industry. The food industry consists of everything from food processing plants to fast food and it affects nearly every living person. That is why it is so critical that the products of this industry should be at their highest quality, free of bacteria and ensure that the consumer will not face any detrimental consequences. Total Quality Management (TQM) plays a big role in promoting these results. Total Quality Management seems to be a confusing term for the layperson. TQM is a philosophy advocated by Dr. Edward Deming, an international quality management expert. It was widely accepted by Japan from 1950 onwards. Since then many organizations around the world have adopted TQM or similar organisational processing methodologies. There have been many successes but also many reported failures. Success of the system depends on the total commitment of the people to quality from top to bottom within the organization. TQM implementation is based on team work and the philosophy of continuous improvement. Statistics need to be used extensively to analyse and reduce the variation in the process. In Nigeria today, we have different fast food joints springing up everyday, we have the likes of Mr. Biggs, Sweet sensation, chicken liken, chicken republic, finiki, tasty fried chicken, tantalizers as the front runners of the industry. Basically there is a greater need for us to examine, the extent to which these...
Words: 7866 - Pages: 32
...Living Total Quality Management-(The Agile way) Devyani Sharma, Saurabh Bagaria Pitney Bowes Business Insight Logix Techno Park, Tower - D Sector-127, NOIDA- 201301(U.P.) Phone 91-120-4026000 Fax 91-120-4026013/14 Devyani_sharma@mapinfo.com Abstract: Total Quality Management is used by organizations across the globe to ensure that every process from start to finish whether in product manufacturing, solution development or service distribution embraces quality as a guiding principle. In this paper we explore why TQM is such a powerful philosophy and how software development companies can benefit from TQM. We shall discuss how TQM can help when following Agile Model and how it complements the agile philosophy. The Paper will be divided in five sections:1. The Quality perspective 2. Agile Quality Management- a combined approach 3. Agile Quality Mindset 4. Challenges 5. Conclusion Keywords: TQM, Agile, Quality 1 Introduction In mid 1940s, Dr. W. Edward Deming introduced the world with concept of TQM. Dr Deming’s ideas had little impact on the American psychology but his management mantras were a huge success in Japan. As a result of which till date Japanese products are considered to of highest quality standards. Total Quality Management (TQM) is Intrinsic Quality Control, an integrative management philosophy aimed at continuously improving the performance of products, processes and services to achieve and exceed customer...
Words: 3341 - Pages: 14
...recent years, Total Quality Management (TQM) has received worldwide attention and is being adopted in many industries, particularly in developed economies. TQM has evolved primarily because of the changes in the global economy and also because of demand in market forces. Although control of quality has been practised in many industries for several years, the adoption of TQM as a major preoccupation of businesses worldwide is very recent. The traditional control methods being implemented in industries to ensure quality have not yielded the results that were expected of them. Furthermore, rapidly changing technology and customer expectations have already affected organizations worldwide and thus have promoted the need for taking a new look at quality management. In this study we intend to discuss how TQM can be adopted in organizations that are replacing existing quality control systems to promote competition and growth. Various pioneering researchers have made significant contributions towards the design, development and application of the TQM system. This article takes a synoptic view of the existing state-of-the-art and makes an attempt to present an overview of some of the key studies, focusing on the following specific issues: q What are the key concepts of TQM? q What is the global acceptability of TQM? q How should TQM be implemented? q What role can TQM play in developing economies? TQM: The Key Concepts TQM may be defined as a continuous quest for...
Words: 9360 - Pages: 38