What are the differences between TQM and TQM 2 (continuous profit improvement)
Hi,
recently I've read "The Goal" by E. Goldratt. When I looked for more information on Theory Of Constraints, I found the concept of TQM 2 or "continuous profit improvement".
Can somebody outline the main differences between TQM and TQM 2?
Anyone with thoughts on "continuous profit improvement"?
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I haven't heard the phrase TQM 2, but I've heard a lot from Goldratt on his
philosophy. He is (and rightly so) concerned about maximizing profit. So he suggests that you need to eliminate waste, but you also need to determine
how to improve the product (and the supporting services, marketing approach, etc) to increase the value and therefore justify a higher price.
He makes the point that you can only reduce costs so far (to zero),
but there is no upper limit on increasing value.
Read his book "It's Not Luck" for a great illustration of this concept. Although I will say that some of the suggestions are not easy to implement- when
you challenge the established methods of your industry. But they are
powerful.
What are the differences between TQM and TQM 2 (continuous profit improvement)
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