Reducing Cost and Spending while Maximizing Business Value
Unlike cost cutting or cost reduction, cost optimization isn’t one-time, it requires a continuous effort to improve both the hardware and software of the business to ensure the company gets what they are paying for. TQM make use of LEAN concept to help companies in improving their work progress, analyse potential improvement areas like reduce chance of machinery aging, shorten product production cycle, standardize and simplify processes etc. to achieve a lower production cost while at the same time improve the quality of products, at a result to fulfill T(Timeliness), Q(Quality) and M(Margin).
TQM is expertise in using LEAN and –QA concepts to cut down production costs at the same time to improve the quality of products.
By achieving the above steps in reviewing the root cause problems of a company or factory, not only the quality of the products can be improved, some unnecessary spending or costs can be cut down too, which helps to achieve a reduction in cost and cost optimization.