COMM 4351 Chapter Notes - Chapter 4: Quality Management, Total Quality Management, Intime
Document Summary
Functional level strategies: strategy aimed at improving the effectiveness of a company"s operations and its ability to attain: superior efficiency quality innovation, and customer responsiveness. Fixed costs: costs that must be incurred to produce a product regardless of the level of output. Diseconomies of scale: unit cost increases associated with a large scale of output occur mostly because of the increased bureaucracy associated with large scale enterprises and the managerial inefficiencies that can result ex. Larger factories could allow for higher production levels, but their increased costs for facilities and management would cause unit cost to increase rather than decrease. Learning effects: cost savings that come from learning by doing ex. Labour learns by repetition how to best carry out a task. More significant when a technologically complex task is repeated because there is more to learn (ex. Health care, especially surgery) learning effects typically diminish importance after a period of time.
