An Evaluation of Total Quality, Just-in-Time and Activity Based Costing as a Means for Improving Manufacturing Productivity

Author

Terry J. Foushee Sr., Fontbonne College

Year of Award

1991

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business

Department

Business Administration

Keywords

TQM, production, inspection, cost, labor

Abstract

True productivity comes from employees who are dedicated to their work and who cause positive change to occur in their portion of the overall .business. Three methodologies are.available to help change productivity in America,. Singly, the success of each is marginal, but combined they provide for continuous improvements, quality performance, waste elimination through employee involvement.

These methodologies are: Total Quality, Just-In-Time manufacturing and Activity-Based Costing. This thesis will describe these.methods, place them in a business perspective and.show how their interaction provides the framework for improved productivity and manufacturing growth.

Total Quality is designed into the product and manufacturing process. It cannot be inspected in after the fact. Total Quality can be nothing less than complete customer satisfaction.

Just-In-Time manufacturing methods begin with product design and end with the last customer in the production process., Just-In-Time means positive change, waste elimination and employee involvement. Process simplification eliminates wasted material, time and non-value added efforts. Employees take on ownership of their process as work responsibility is shifted from management to all employees.

Employee teams with knowledge of accounting and manufacturing processes, join forces to implement Activity-Based Costing. Old methods of reporting are investigated to affirm their usefulness and value added to the business; Antiquated methods may not show the true cost drivers.

Traditional accounting methods provide the wrong information too late to be of any use in a dynamic manufacturing facility. All business systems must support continuous improvement and business growth. In short, design, manufacturing, quality and accounting must operate in concert to assure customer satisfaction. Actually, each is supplied of information and product and a customer of each others work.

These methods provide the framework for constant product improvement. JIT and Total Quality are improvement driven. Small successes lead to more successes. Activity-Based Costing, when properly administered, will reach beyond measuring the factory floor by insuring that all business barometers are value-added to the company. The best of the human resource is obtained by small work group interaction. This allows the business to focus on customer satisfaction, even if the customer is the next person on the production line.

Document Type

Restricted Thesis

Recommended Citation

Foushee, Terry J. Sr., "An Evaluation of Total Quality, Just-in-Time and Activity Based Costing as a Means for Improving Manufacturing Productivity" (1991). All Theses, Dissertations, and Capstone Projects. 422.
https://griffinshare.fontbonne.edu/all-etds/422