SGMT 3000 Lecture Notes - Lecture 4: Six Sigma, Learning Curve
9 May 2016
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Unit costs falls as your produce more of the same product, until you reach a certain pt: reasons: division of labour. Unit cost rises after a while (diseconomies of scale) Gradually figure out more efficient ways to do a task. Combined effect of economies of scales and learning curve. 3. 4 products defected / 1 m products. Black belt supervisors focusing on quality: when a defect is found, try to find the source of the defect (i. e assembly line stage, raw material, etc. , typically wont continue until source is found and dealt with o. Ch 4 -> functions of the various divisions. 4 building blocks of the firms distinctive competnecies: efficiency, wuality, innovation, responsiveness to customers. Two main strategies: cost leadership: lower costs, differenitation: i. e by quality, features, after-sale service. Second choice to consider: market segmentation: standardization strategy, segmentation strategy. Broad low cost (selling to all kinds of customers)
