Limitations of Traditional Quality Measures:

Traditional performance measures suffer most while it comes to competitiveness. The restriction fall into three categories: emphasis on financial criteria, emphasis on pieces of the system, and emphasis on the past and the present.

Emphasis on Financial Criteria

Traditional criteria try to measure total performance in terms of finance. While financial criteria are definitely necessary, but they alone do not present all realms of performance. Therefore, in the long run to achieve success, other criteria are also necessary for consideration. Several organizations emphasize on minimizing capital expenditures and labour cost without considering for its long term effect. Emphasis on simple financial measures confines management from looking at a broader plateau. If an organization plans to diminish waste or lead time, it should use decision criteria and performance measures compatible with those goals.