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What is TQM in Capsim, and how do you use it? Total Quality Management (TQM) is an option in the game; it is a way to distinguish your products and make them better. It costs money to use this option, but it could make your product more attractive, reduce the cost of materials, lower the cost of labor, give you faster Research and Development (R&D) upgrades, add “green initiatives” and sustainable options. All of these will increase the demand for your products Expert Tip: Using this option could potentially increase your total revenue in the long run. Make sure you set a budget for this option, so you don’t overspend.
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I started using the Capsim Foundation Challenge in my classes because it is one of the most popular business simulations in the world, with more than 900 universities participating. It is a key activity of Strategic Management (BPS 4305), the course in which you get to run a company. You get to practice making executive decisions regarding accounting, finance, research, design, and more. Many activities mimic real-life situations and revolve around designing products, pricing them, and finding the perfect marketing strategy to sell them.