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4 Apr 2012
Productivity-quality connection
Productivity: a measure of economic performance that measures how much is
produced relative to the resources used to produce it.
Quality: a products fitness for use in terms of offering the features that consumers
Measuring productivity
Labour productivity: partial productivity ratio calculated by dividing gross
domestic product by total number of workers.
Productivity among global competitors
Domestic productivity
Manufacturing vs. service productivity
Industry productivity
Company 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 competitors
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 firms
current quality-related costs and identifying areas with the greatest cost-saving
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