Quality as a Driver of Profitability


McCabe, William J.   (1989, ASQC)   IBM Corp., Kingston, NY

Annual Quality Congress, Toronto, Ontario, Canada    Vol. 43    No. 0
QICID: 3641    May 1989    pp. 682-687
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Article Abstract

Management is realizing that quality improvement is required for a company's survival. However, many quality improvement efforts are fragmented, making it hard to see how all the pieces fit together to form a cohesive business strategy. This paper describes a broad-based, integrated approach that can have a major impact on profits. Faced with intense competition and advancing technology, over the long run, a company has to grow with its industry, maintaining or improving market share. The pressures of inflation and international competition force management to constantly improve the efficiency of operations. The paper describes some market-driven approaches that a company could take to achieve customer-based quality that ultimately drives growth. Producer-based quality approaches which result in improved efficiency are discussed with a focus on process redesign. The goal should not be either growth or efficiency by themselves but rather the interplay of both, leading to sustained profitability.


Quality management (QM)

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