MGTA02H3 Chapter 2: Chapter 2- Productivity and Quality
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MGTA02H3 Full Course Notes
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Responding to the productivity challenge: four factors in the process: customers, quality, productivity, and profits. Measuring productivity: labour product iv i ty partial productivity ratio calculated by dividing gross domestic product by total number of workers. Productivity among global competitors: productivity is influenced by technologies, human skills, economic policies, natural resources. Domestic productivity: when productivity decreases, one person"s wealth comes only at the expense at the others. E. g. if you want to increase wages you must reduce profits (hurts investors) or increase prices (hurts customers) Manufacturing versus service productivity: productivity gains are starting to appear in a variety of service providers as they are using modern information technology to eliminate inefficiencies (e. g. automated check-in kiosks) Investors and suppliers consider industry productivity when making loans, buying securities, and planning their own future production. Company productivity: high productivity = low costs, product at a lower price, and higher wages. Juran"s quality trilogy (quality planning" quality control, and quality improvement)
