MGTA02H3 Chapter Notes - Chapter 2: Total Quality Management, Business Process Reengineering
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MGTA02H3 Full Course Notes
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Productivity is a measure of economic performance a measure of efficiency that compares how much is produced with the resources used to produce it. Quality: a products fitness for use in terms of offering the features that consumers want. Quality is defined in terms of value to the customer companies must design their marketing efforts to cultivate a more customer oriented focus. Improvement in quality= increase in payoffs for firms. Four factors are involved in this process: customers, quality, productivity, and profits. Productivity among global competitors: technology, human skills, economic policies, natural policies, and even tradition influence productivity in many countries. Domestic productivity: nations must be concerned about domestic productivity regardless of their global standing. A country that improves productivity can increase its wealth and. Gdp decrease in productivity means a decrease in nations total wealth. Industries within sectors also differ vastly in terms of productivity. Strategic approach to tqm begins with leadership and the desire for tqm.
