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Chapter 2
Productivity a measure of efficiency that compares how much is produced with the
resources used to product it
Quality a products fitness for use in terms of offering the features that consumers want
Labour productivity partial productivity ratio calculated by dividing gross domestic
product by total number of workers
Total quality management (TQM) or quality assurance a concept that emphasizes that no
defects are tolerable and that all employees are responsible for maintaining quality
standards
Performance quality the overall degree of quality; how well the features of a product meet
consumers’ needs and how well the product performs
Quality reliability the consistency of quality from unit to unit of a product
Quality ownership the concept that quality belongs to each employee who creates or
destroys it in producing a good or service; the idea that all workers must take responsibility
for producing a quality product
Business process re-engineering redesigning of business processes to improve
performance, quality, and productivity
Supply chain flow of information, materials, and services that starts with raw materials
suppliers and continues through other stages in the operations process until the product
reaches the end customer
Supply chain management (SCM) principle of looking at the chain as a whole to improve
the overall flow through the system
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Document Summary

Productivity a measure of efficiency that compares how much is produced with the resources used to product it. Quality a product"s fitness for use in terms of offering the features that consumers want. Labour productivity partial productivity ratio calculated by dividing gross domestic product by total number of workers. Total quality management (tqm) or quality assurance a concept that emphasizes that no defects are tolerable and that all employees are responsible for maintaining quality standards. Performance quality the overall degree of quality; how well the features of a product meet consumers" needs and how well the product performs. Quality reliability the consistency of quality from unit to unit of a product. Quality ownership the concept that quality belongs to each employee who creates or destroys it in producing a good or service; the idea that all workers must take responsibility for producing a quality product. Business process re-engineering redesigning of business processes to improve performance, quality, and productivity.

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