Coat Co manufactures men’s clothing. The company has for many years operated a traditional standard costing and variance analysis approach to performance management. The marketing director has recently been on a training course about quality improvement and has suggested that the company moves to a TQM approach to performance management. His recommendation will be considered at the next meeting of the board of directors.

Required:
Write a brief report which considers some of the practical issues that Coat Co would face should the company decide to change from a standard costing to a TQM approach to performance management.