The role of quality cost in TQM

One of the most important tools necessary for the successful implementation of a quality programme such as ISO 9000 or TQM is quality cost. A process based on cost analysis is a straightforward method to obtain and maintain management approval of a quality improvement initiative. This business‐like approach to quality assures management that quality improvement is a fiscally responsible way to serve the organization, as opposed to just complying with a set of external rules and regulations. A major benefit of employing a quality cost approach to quality improvement is that it provides a method to monitor the pertinence of projects to the overall goals of the organization. A cost‐based approach to select the quality improvement projects that are appropriate to the organization is a key part of the strategy for overall business success: to do the right things right.