RSM100Y1 Chapter Notes - Chapter 12: Statistical Process Control, Total Quality Management, Gross Domestic Product
Document Summary
Productivity: a measure of economic performance that measures how much is produced relative to the resources used to produce it. Quality: a products fitness for use in terms of offering the features that consumers want. 4 factors interact in process: customers, quality, productivity, profits. Domestic productivity is important in increasing it is important because this creates additional wealth which is shared among workers (as higher wages), investors (as higher profits) and customers (as stable prices) High productivity gives a company a competitive edge because its costs are lower. Quality trilogy : quality planning, quality control, and quality improvement (first structured process for managing quality) Total quality management (tqm): all the activities necessary for getting high quality gods and services into the marketplace: must include all parts of business, including customers, suppliers, employees, managing quality includes planning, organizing, leading, and controlling quality.
