Productivity: a measure of economic performance that measures how much is
produced relative to the resources used to produce it.
Quality: a product’s fitness for use in terms of offering the features that consumers
Labour productivity: partial productivity ratio calculated by dividing gross
domestic product by total number of workers.
Productivity among global competitors
Manufacturing vs. service productivity
Total quality management (TQM): all the activities necessary for getting high-quality
goods and services into the market.
Managing for quality
Planning for quality
Performance quality: the feature of a product and how well it performs.
Quality reliability: the consistency or repeatability of performance.
Organizing for quality
Leading for quality
Quality ownership: the idea that quality belongs to each person who creates or
destroys it while performing a job.
Controlling for quality
Tools for total quality management
Competitive product analysis: process by which a company analyzes a competitor’s
products to identify desirable improvements.
Value-added analysis: the evaluation of all work activities, material flows, and
paperwork to determine the value that they add for customers.
Statistical process control (SPC): statistical analysis techniques that allow
managers to analyze variations in production data and to detect when
adjustments are needed to create products with high-quality reliability.
Process variation: any change in employees, materials, work methods, or
equipment that affects output quality.
Control charts: a statistical process control method in which results of test
sampling of a product are plotted on a diagram that reveals when the
process is beginning to depart from normal operating conditions.
Quality/cost studies: a method of improving product quality by assessing a firm’s
current quality-related costs and identifying areas with the greatest cost-saving
potential. Internal failure: expenses incurred during pr