Business and Quality Improvement Programs:

The last two decades have been a period of tremendous upheaval and change in the business environment, including the explosive growth of the internet.
Competition in many industries has become world wide in scope, and the space of innovation in products and services has accelerated. This has been good news for consumers, since intensified competition has generally led to lower prices, higher quality and more choices.
However, the last two decades have been a period of wrenching change for many businesses and their employees. Many managers have learned that cherished ways of doing business don't work any more and that major changes must be made in how organizations are managed and in how work gets done. These changes are so great that some observers view them as a second industrial revolution. This revolution is having a profound effect on the practice of managerial accounting-as we will see through the rest of the text. First, however. it is necessary to have an appreciation of the ways in which organizations are transforming themselves to become more competitive. Since the early 1980s, many companies have gone through several waves of Business and Quality improvement programs, starting with Just-In-Time (JIT) and passing onto Total Quality Management (TQM), Process reengineering, and various other management programs-including in some companies The Theory of Constrains (COT), When properly implemented, these improvement programs can enhance quality, reduce cost, increase output, eliminate delays in responding to customers, and ultimately increase profits. They have not, however, always been wisely implemented, and there is considerable controversy concerning the ultimate value of each of these programs. Nevertheless, the current business environment cannot be properly understood without some appreciation of what each of these approaches attempts to accomplish. Each is worthy of extended study, but we will discuss them only in the broadest terms the details are best handled in operations management courses.

1. Just in time (JIT) manufacturing system
2. KANBAN
3. Total quality management (TQM) system
4. Six sigma
5. Business process reengineering (BPR)
6. Theory of constraints (TOC)

1.         Just-in-Time (JIT) Manufacturing and Inventory Control System:
Just In Time (JIT) is a production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand. Under ideal conditions a company operating at just in time manufacturing system would purchase only enough materials each day to meet that days needs. Moreover, the company would have no goods still in process at the end of the day, and all goods completed during the day would have been shipped immediately to customers. 
2.          Kanban:
A Kanban system is a means to achieve just in time (JIT) production. It works on the basis that each process on a production line pulls just the number and type of components the process requires, at just the right time. The mechanism used is a Kanban card. This is usually a physical card but other devices can be used Two types of such cards are usually used.
3.        Total Quality Management (TQM) System:
Total quality management (TQM) is an improvement program which provides tools and techniques for continuous improvement based on facts and analysis; and if properly implemented, it avoids counterproductive organizational infighting.
4.       Six Sigma:
Six sigma is a quality standard that establishes a goal of no more than 3.4 defects per million units or procedures. What does the name mean? 
5.          Business Process Reengineering (BPR):
A business process is any series of steps that are followed to carry out some task in a business. Process reengineering focuses on simplification and elimination of wasted efforts. A central idea of process reengineering is that all activities that do not add value to a product or service should be eliminated.
6.          Theory of Constraints (TOC):
Theory of constraints (TOC) is a management approach that emphasizes the importance of managing constraints. A constraint or bottleneck is any thing that prevents you from getting more of what you want. Study of constraints or bottlenecks, keeping their record and taking necessary steps to improve them is also known as bottleneck accounting.