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4 Apr 2011
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Management lecture 2
Increasing Productivity
-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
-Process Re-engineering
-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
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If customers dont feel they are getting value:
-They complain
-They demand
-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
-Cost
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% dont complain
-They just... Dont go back
-Business loses all future sales from that customer
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Document Summary

People buy goods for their price rather than how which is better. Delivering a product of what the client expects, for the price customers are paying. Quality stays at what is or above price. Expectation is different depending on what market you are selling it to: managing to i ncrease productivity. 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. Notes: neither definition mentions fancy www. notesolution. com: if customers don"t feel they are getting value: 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. Repair dept (1hour labour @ ) = (25) Profit = 400: if something does not work then company makes a loss.

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