Labour unions need to take it into account in negotiating contracts since highly productive industries can give raises more easily than less productive industries y. Total quality management y businesses must take quality into account when measuring productivity. Leaders must continually find ways to foster a quality orientation by training employees, encouraging their involvement, and tying wages to quality of work. Iso 9000 and iso 14000, re-engineering, and adding value through supply chains. Value-added analysis: y refers to the evaluation of all work activities, material flows, and paperwork to determine the value that they add for customers y. It often reveals wasteful or unnecessary activities that can be eliminated without jeopardizing customer service. Is any change in employees, materials, work methods, or equipment that affects output quality excessive operating costs y. Internal failures: expenses incurred during production and before bad product leaves the plant get into customers hands.