MGMT 1000 Lecture Notes - Malcolm Baldrige National Quality Award, Total Quality Management, Quality Costs
10 Aug 2014
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Document Summary
Engaging customers: products and services & the importance of quality. Can reduce costs, increase profits and help create corporate cultures where continuous learning is way of life. Commitment to quality and improvements has to become part of mindset shaping peoples approach to work. Quality revolution: improving quality of their products/services businesses and services of all kind can reduce costs and increase profits by: started in japan in 1950s and 1960s and thereafter spread throughout europe and north. Cost vs. quality paradox costs of production. : old logic suggest that increase in quality of product/service = increase in: new logic quality is expensive suggests that increasing quality can reduce costs of production because poor. Poor quality production systems lead to low productivity, defects and waste materials (viscious. Loop: faulty under-performing products annoy customers, dissatisfied customers spread the word and deter new customers, as a result, sales and marketing become increasingly expensive propositions with poor returns.
