Use the TQM area, which is available from the Decisions menu in Capstone.xls, to improve the efficiency of your company.

Companies need to determine which TQM Initiatives best serve their purposes. For example, companies with low automation levels might want to focus on initiatives that lower labor costs, or companies competing in the high technology segments (with high material costs) might consider initiatives that reduce material costs.

The effects of the investments are cumulative and offer returns in each ensuing round. However, companies that invest in the same areas over two or three years (depending on the amount of money) will experience decreasing and eventually no additional returns in those areas. Initiatives improve operation and quality procedures, which (depending on the investment) will:

• Produce administrative savings;
• Improve production efficiency by lowering labor and/or material costs;
  
• Increase demand;
• Reduce R&D times.

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