In: Math
Explain the links between quality and productivity and quality and cost
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Better quality sets the product apart and increases sales. It
also results in lesser defects, increases production efficiency,
reduces replacement/repair costs and increases overall customer
satisfaction. The decrease in defects and repair costs decreases
the input cost and increases the overall productivity.
quality and productivity :-
1) The main difference is that the focus of the productivity
definitions is efficiency (or as many outputs as possible for a
given unit of inputs), while for quality the main focus is service
or output quality and customer satisfaction.
2)Higher quality goods take more time and labor and higher quality
raw material to produce, so a drive to greater productivity almost
always means a diminution of quality.
3)Productivity is the relationship between the amount of outputs
and amount of inputs needed to produce a product. In other words,
management measures productivity by comparing the amount of a
product produced to the amount of raw materials and manpower needed
to produce a product.
4)Physical productivity is the quantity of output produced by one
unit of production input in a unit of time. For example, a certain
equipment can produce 10 tons of output per hour. ... For example,
if a worker produces in an hour an output of 2 units, whose price
is 10$ each, then his productivity is 20$.
quality and cost
1)The cost of poor quality only reflects a portion of the total
quality costs. The internal and external failure costs are
generally associated with the Cost of Poor Quality whereas the
Appraisal and Prevention Costs constitute the costs related to
ensuring the product is indeed to requirements.
2)Cost of quality (COQ) is defined as a methodology that allows an
organization to determine the extent to which its resources are
used for activities that prevent poor quality, that appraise the
quality of the organization's products or services, and that result
from internal and external failures.
3)The cost of poor quality only reflects a portion of the total
quality costs. The internal and external failure costs are
generally associated with the Cost of Poor Quality whereas the
Appraisal and Prevention Costs constitute the costs related to
ensuring the product is indeed to requirements.