ACCA Performance Management (F5) Certification Practice Exam

What is the primary focus of Total Quality Management (TQM)?

1. To maximize production speed

2. To ensure goods and services are of the highest quality

3. To minimize labor costs

4. To increase sales volume

The correct answer is: To ensure goods and services are of the highest quality

The primary focus of Total Quality Management (TQM) is to ensure that goods and services are of the highest quality. TQM is a comprehensive management approach that seeks to improve quality and performance in an organization by involving all employees, from upper management to frontline workers. The rationale behind TQM is that quality is a key driver of customer satisfaction, and therefore, enhancing quality can lead to improved customer loyalty, reduced costs, and increased efficiency. One of the fundamental principles of TQM is continuous improvement, which means that organizations strive to improve their processes, products, and services consistently over time. This holistic approach also emphasizes the importance of fostering a quality-oriented culture within the organization, where every employee feels responsible for the quality of their work and understands how their contributions impact the overall success of the business. Although other options mentioned—maximizing production speed, minimizing labor costs, and increasing sales volume—are important for businesses, they do not encapsulate the essence of TQM. TQM prioritizes quality outcomes over speed or cost-cutting measures, recognizing that delivering a high-quality product can inherently lead to improvements in efficiency and customer satisfaction, which may subsequently boost sales and reduce costs.