Exclusive Content & Downloads from ASQ

An Empirical Investigation of the Relationship Between Quality and Productivity

Summary: The traditional theory of quality and productivity hypothesizes an inverse relationship between quality and productivity whereas a more contemporary theory hypothesizes that quality and productivity are directly related. A production simulation game was conducted to examine this relationship. The research results confirmed the contemporary theory that quality and productivity are directly related. The results indicated that as defects, scrap, and rework (negative quality)decrease, productivity increases. Thus, as quality increases, productivity increases. This study also found that there are strong relationships between total productivity and partial productivity indexes, materials productivity, labor productivity, and capital productivity, in descending order. Cost analysis implied that materials cost constitutes a higher percentage of total cost than labor cost for productive companies.

Anyone with a subscription, including Site and Enterprise members, can access this article.

Other Ways to Access content:

Join ASQ

Join ASQ as a Full member. Enjoy all the ASQ member benefits including access to many online articles.

Subscribe to Quality Management Journal

Access this and ALL OTHER Quality Management Journal online articles. You'll also receive the print version by mail.

  • Topics:
  • Keywords: Cost analysis,Productivity,Simulations,Scrap,Rework,Statistical methods
  • Author: McCracken, Melody J.; Kaynak, Hale
  • Journal: Quality Management Journal