Business – 9.2 Quality management – Quality control and assurance | e-Consult
9.2 Quality management – Quality control and assurance (1 questions)
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Answer: The financial impact of TQM can be summarised as follows:
| Item | Short‑Term Cost (£) | Long‑Term Benefit (£) |
| Training & development | 50,000 | 150,000 (reduced re‑work) |
| Process redesign | 30,000 | 120,000 (faster throughput) |
| Quality audits | 20,000 | 80,000 (lower warranty claims) |
| Total | 100,000 | 350,000 |
The table shows that while TQM requires an upfront investment, the cumulative savings from reduced waste, higher productivity, and fewer warranty costs can exceed the initial outlay, delivering a positive net financial return over time.