Essay Chapter 12

What total quality management is and how it can be achieved.
-referring to the functions of management as they apply to TQM and to some of the tools used in TQM such as Fishbone diagram, process capability studies control charts and benchmarking.

1. TMQ is a concept that emphasizes that no defects are tolerable and that all employees are responsible for maintaining quality standard. This approach involves getting people’s attention, getting them to think in an entirely new way about what they do, and then getting them to improve both processes and products. Successful use of TMQ requires a high level of commitment from all members of the organization. To detect the beginnings of bad conditions, managers can check production periodically and plot resists on a control chart.

-control chart is: Control limits are noted on a graph to depict the acceptable range of variation. Results of the test sampler are graphed. Results outside the control limits are easily spotted. Cause in investigated. Problem corrected to restore process to normal.

Benchmarking: to improve its own products or its business procedures, a company compare its current performance against its own past performance, or one company finds and implements the best practices of others.

Internal Benchmarking : a firm tracks its own performance over time to evaluate its progress and to set goals for further improvement.

External Benchmarking: begins with a critical review of competitors to determine which goods or services perform the best; these activities and products are called best practices.

*Fishbone or cause-and-effect diagram.

Essay Chapter 14

1. Explain Balance Sheet
--A balance sheet supply detailed information about the accounting equation factors: assets, liabilities, and owners’ equity. Because they also show a firm’s financial condition at one point in time, they are also called statements of financial position.

- Current assets: cash and