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.
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