A study on the profit-based quality-productivity relationship model and its verification in manufacturing industries



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Texas Tech University


For years quality and productivity have been regarded as two important indexes of company performance. Many companies hope to pursue high quality and high productivity at the same time. However, in most cases, these two variables are not linked together in the production system mainly because of the variety of their definitions (Human Resources Productivity, 1983; Garvin, 1988; Belcher, 1987; Hoffherr & Moran & Nadler, 1994; Smith, 1990). Additionally, these two variables are not taken into account together because: (1) the objectives of quality management and productivity management are viewed as contradictory,^1 (2) the definitions of quality and productivity are difficult to define, (3) the affecting factors on quality or productivity are too numerous, (4) seemingly, quality and profit have no direct connection, and (5) many companies believe that they have distinct characteristics which may not be subject to any model.