Test Driven Development (TDD) is an effective way to build quality into software development from the start. TDD involves writing a failed test first, then passing the test by writing just enough code, and refactoring the code. This fits the principles of building quality in by preventing unnecessary rework and defects, integrating features early through testing, and not tolerating defects. The document discusses how TDD, lean software development principles, and techniques like pair programming can help optimize processes and deliver high quality software.