Explain the role of quality in operations management. What role did W. Edwards Deming play in the quality
movement? Briefly describe the Deming Chain Reaction.
Quality can be defined in many ways, but operations managers usually define it in
terms of how well a good or service satisfies customer preferences. Improvements in
quality are a key to competitive advantage because they enable a firm to improve both
its effectiveness and its efficiency. Better quality improves effectiveness because
high quality creates value for the customer. It improves efficiency because good
quality tends, in the long run, to be less expensive than poor quality.
These ideas are not especially new. They were first popularized in the early 1950s by
quality experts such as W. Edwards Deming, viewed by many as the father of the
quality movement. Deming summarized the benefits of quality improvement with a
concept called the Deming Chain Reaction. According to the chain reaction,
improving quality reduces costs because better quality means less reworking, fewer
mistakes, fewer delays and snags, and better use of time and materials, all of which
result in improved productivity. Firms producing quality products and services at a
lower cost capture the market because they can offer customers superior goods at a
lower price than their competitors. The end result is growth, profits, and jobs.
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A) features B) advantages C) benefits D) value E) macroenvironment
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A) Demographics B) Target market C) Culture D) Psychographics E) Attributes
The collection policy of the company is to collect 20% in the month of sale, 40% in the following month, and remaining 40% in the second month after the month of sale. All sales are made on account. Calculate the cash receipts from customers for the first six months.
Valentina Company will begin operations on January 1st. The company has provided the following
details concerning budgeted sales:
Summarize the guidelines for breaking bad news to employees and the public