When accurate forecasting inventory levels are kept

When accurate forecasting inventory levels are kept at maximum efficiency, this
allows for the organization to be profitable.
• Integration of the various departments ensures communication, productivity and
efficiency.
• Adopting ERP software eradicates the problem of coordinating changes between
many systems.
• ERP software provides a top-down view of an organization, so information is
available to make decisions at anytime, anywhere.
Disadvantages of ERP System
• Adopting ERP systems can be expensive.
• The lack of boundaries created by ERP software in a company can cause problems of
who takes the blame, lines of responsibility and employee morale.
QUALITY MANAGEMENT
Quality management is the act of overseeing all activities and tasks that must be
accomplished to maintain a desired level of excellence. This includes the determination of a
quality policy, creating and implementing quality planning and assurance, and quality control
and quality improvement. It is also referred to as total quality management (TQM).
In general, quality management focuses on long-term goals through the implementation of
short-term initiatives. Quality management is the act of overseeing all activities and tasks
needed to maintain a desired level of excellence. Quality management includes the
determination of a quality policy, creating and implementing quality planning and assurance,
and quality control and quality improvement.
TQM requires that all stakeholders in a business work together to improve processes,
products, services and the culture of the company itself. At its core, TQM is a business
philosophy that champions the idea that the long-term success of a company comes from
customer satisfaction and loyalty. TQM requires that all stakeholders in a business work
together to improve processes, products, services and the culture of the company itself.
While TQM seems like an intuitive process, it came about as a revolutionary idea. The 1920s
saw the rise in reliance on statistics and statistical theory in business, and the first-ever known
control chart was made in 1924. People began to build on theories of statistics and ended up
collectively creating the method of statistical process control (SPC). However, it wasn't
successfully implemented in a business setting until the 1950s.
It was during this time that Japan was faced with a harsh industrial economic environment. Its
citizens were thought to be largely illiterate, and its products were known to be of low
quality. Key businesses in Japan saw these deficiencies and looked to make a change.
Relying on pioneers in statistical thinking, companies such as Toyota integrated the idea of
quality management and quality control into their production processes.

By the end of the 1960s, Japan completely flipped its narrative and became known as one of
the most efficient export countries, with some of the most admired products. Effective quality
management resulted in better products that could be produced at a cheaper price.