Reducing Cost and Spending while Maximizing Business Value
Unlike cost cutting or cost reduction, cost optimization is not one-time, it requires a continuous effort to improve both the hardware and software of the business to ensure companies get what they are paying for. TQM make use of LEAN concept to help companies in improving their work progress, analysing potential improvement areas like reducing chance of machinery aging, shortening product production cycle, standardizing and simplifying processes, etc. to achieve a lower production cost while at the same time improve the quality of products, also as 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 and meanwhile 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 as well, which leads to the achievement of cost reduction and cost optimization.