Environmentally Conscious Manufacturing Through Total Cost Management

Abstract

Total Cost Management (TCM) is a business paradigm for managing all company resources and the activities that consume those resources with a focus on stimulating and managing improvements. We address the theoretical approach of TCM to environmental sustainability and present a practical case of using costing approaches to evaluate the sustainability of the manufacture of a recycled product.  Decision aids, the QFD matrix, B2B e-commerce, allowable costs, and market-based pricing are employed to demonstrate that companies can apply the TCM model to integrate environmental policy as an essential component of corporate strategy to achieve and maintain competitive superiority.