Final answer:
The false statement about Total Quality Management (TQM) is that TQM begins with internal suppliers' requirements; it starts with customer needs and expectations. The correct option is C. This approach can increase revenues and decrease costs significantly.
Step-by-step explanation:
The student is asked to identify the false statement among the options concerning Total Quality Management (TQM). To clarify, total quality management is a long-term management approach aimed at achieving high customer satisfaction through continuous improvements in processes and systems within an organization. Now, considering the given statements, it is pertinent to address each:
- A. TQM concepts apply to the operations of the internal audit activity itself. This statement is true because TQM principles encourage continual improvement and apply to all areas of an organization, including internal audit departments.
- B. TQM is a comprehensive approach to quality. Again, this is a true statement. TQM involves a holistic approach to quality that encompasses all parts of an organization working together to improve processes and products.
- This approach can increase revenues and decrease costs significantly. This is also true. By improving quality, organizations can reduce waste, improve customer satisfaction, and consequently potentially increase revenues while lowering costs.
- D. TQM begins with internal suppliers' requirements. This statement is false. TQM starts with customer requirements, not internal suppliers. The primary focus of TQM is on meeting and exceeding customer needs and expectations, which is a fundamental element of the approach.
Therefore, the answer to the student's question is D. TQM does not begin with internal suppliers' requirements but rather with customer needs and expectations.