Here Richard Shamoon Shared some experience which are important to know in today’s market.
The world economy has changed. Enterprises in many countries now have the ability to compete globally. In many sectors, supply exceeds demand. Consumers faced with greater choices have become more cost- and value-conscious, and are turning to alternative sources for products and services. Consumers are also demanding improved quality. A customer lost because of a quality problem may never return but, more importantly, may take other customers with him or her.
In the economic marketplace, every enterprise is required to define its chosen battlefield and competitive weapons. Today, quality, cost, innovation and response times to customers are the competitive weapons of choice for the successful enterprise.
In the 1970s and ‘80s, traditionally managed businesses that competed with those that mastered total quality management lost markets that they previously dominated. The successful companies proved that a better quality product or service, produced and delivered in a timely manner, can be less, not more, expensive for the producer.
Quality, cost and time frequently seem to conflict with one another, necessitating trade-offs. These conflicts exist because traditional cost accounting practices do not always consider the hidden costs of (poor) quality. For example, an executive in the computer industry once observed, “If you catch a faulty two cent resistor before you use it and throw it away, you lose two cents.” However, if you don’t find it until it has been soldered into a sub-assembly, it may cost $10 to repair the part. And if you don’t catch it until it is in the computer, the expense may be well in excess of the manufacturing costs.