IMPACT OF QUALITY ON COST AND PRODUCTIVITY
Quality is the way of life. Nature is serving the human beings with most valuable quality services which in turn resulting the “quality life” of mankind in this planet. Satisfaction is a measure of quality for which man is craved and all his activities aspired for it. The journey towards the excellence is un ended and computing or gauging the quality is complex and perceptive. Success can be achieved through many ways, but the one attained through quality has ultimate impression.
In 20th century, world has changed drastically in all aspects and the importance of quality is felt every where. Rapid Industrialization completely altered the global scenario and quality of product or services rendered by any industry became the backbone. Quality may be defined as “Degree to which a set of inherent characteristics fulfill the requirement”. Production centric organizations failed miserably due to their approach towards the quality of product or service. Due to LPG (Liberalization, Privatization and Globalization) customer has the complete autonomy for his demands and hence his pleasure turned into focal point. Organizations revamped their systems of management and many revolutionary concepts came into lime light. Quality assurance and TQM (Total quality management systems) methods are few systems which are yielding definitely better results.
Cost and Productivity:
Any Industry survival is depending upon the value that it adds to the investment over a time. In the present competitive circumstances this can be achieved by earning good profits, which will be possible through cost reduction and increased productivity.
Cost: It is the amount spent to provide the resources (Input) for getting the desired Product (output).
Productivity: Productivity is defined as the relation ship between the output (Product) to input (Resources consumed).
Productivity = Output / Input....
Please join StudyMode to read the full document