Final answer:
The statement that competitors are an important source of information about quality in total quality management is true. Competitors provide insights into market trends and effective processes, helping businesses to continually improve their products and services. This knowledge can contribute significantly to gaining and maintaining competitive advantage.
Step-by-step explanation:
True or False: An important source of information about quality in total quality management is competitors. This statement is actually true. Information derived from competitors can indeed be a significant source of insights into quality improvement and benchmarking in total quality management (TQM).
TQM focuses on continuous improvement in all aspects of an organization's operations, which includes learning from the successes and failures of competitors. Studying competitors can provide valuable information on market trends, customer expectations, and more effective processes or technologies being employed.
Moreover, competition drives businesses to strive for better performance. As indicated in Chapter 18, firms with better or cheaper products can have competitive advantage leading to increased profits, whereas failure to compete effectively can result in lost business and jobs. Observing the competitive landscape not only provides insights into what current standards exist but also may signal upcoming shifts or innovations that a company must adapt to in order to maintain or improve its market position.
Exploring sources of comparative advantage across economies, such as educational levels or economies of scale, as mentioned in Chapters 19, 20, and 33, further reinforces the idea that multiple factors contribute to competitive strength. These principles are applicable within the TQM framework as businesses seek to optimize their operations and product quality through a comprehensive understanding of both internal and external factors, including competition.