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Management lecture 2
-Managing to Increase Productivity
-Increasing quality in the product-Total Quality Management
-Focus on customer Value
-Increase performance quality of products
-Increase reliability of products
-Have workers take ownership for quality
-Monitor quality and feedback results
-People buy goods for their price rather than how which is better. If product is exactly the
same why not buy the cheaper product? For example CDs. Quality is the same. Delivering a
product of what the client expects, for the price customers are paying. Quality stays at what
is or above price. Quality varies by country. Expectation is different depending on what
market you are selling it to.
•Managing to Increase Productivity
-Rethink each step in the production process
-Improve efficiency, cost, and quality by changing all that needs to be changed
-Requires delicate balance in moving to a new process design
•Quality- meeting for surpassing customer expectations
-Text: fitness for use in terms of offering
-Book: offering features consumers wants
-Notes: neither definition mentions “fancy”
Only pages 1-2 are available for preview. Some parts have been intentionally blurred.
•If customers don’t feel they are getting value:
-They demand fund
-They stop buying your product
-They tell others (this is a I tell everybody generation)
-People talk to each other about quality of products, and they rely on that assessment.
•Example of personal computer
-Selling price - $1 000
10 hours of labour *$25/hr = (25)
Repair dept (1hour labour @ $25) = (25)
New part= (50)
Profit = 400
•If something does not work then company makes a loss. That is why quality is important.
Do it right the first time because it costs more to deal with repair and replacements
•Unsatisfied customers: 90% don’t complain
-They just... Don’t go back
-Business loses all future sales from that customer
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