Quality if the key to competitiveness. Because the ability to compete translates into the ability to do a better job of producing quality goods, it is critical that nations and individual organizations within them focus their policies, systems, and resources in a coordinated way on continually improving both quality and competitiveness.

1. Quality and
Global
Competitiveness

2. TOPICS
I. Relationship between Quality
and Competitiveness
II. Cost of Poor Quality
III.Competitiveness and The US
Economy
IV. Factors Inhibiting
Competitiveness
V. Characteristics of World-Class
Organizations
 World-Class Manufacturing: What It
Takes?
VI. Management by Accounting
VII.Key Global Trends
VIII.International Quality
Standards
 ISO 9000
 ISO 14000

3. RELATIONSHIP BETWEEN QUALITY
AND COMPETITIVENESS
Why is it important to
improve quality and
competitiveness?

4. COST OF POOR QUALITY
Costs that an organization
incurs due to quality, that isn’t
fit for purpose.

5. COMPETITIVENESS AND THE US
ECONOMY
• To succeed, to compete globally,
• To compete globally, would have
to produce goods of world-class
quality, which meant producing
better goods but at reasonable,
competitive prices

6. FACTORS INHIBITING
COMPETITIVENESS
Family Education
Business and Government
• Emphasis on short-term
profits
• Excessive medical costs
• Excessive cost of liability
Quality of the country’s
educational system is a
major determinant of the
quality of its labor pool
Family unit is the most
important human resource
development agency

7. CHARACTERISTICS OF WORLD-
CLASS ORGANIZATIONS
1.Customer service
2.Quality control and assurance
3.Research and development/new
product development
4.Acquiring new technologies
5.Innovation
6.Team-based approach (adopting
and using effectively)
7.Best practices (study and use
of)
8.Manpower planning
9. Environmentally sound
practices
10.Business partnerships and
alliances
11.Reengineering of processes
12.Mergers and acquisitions
13.Outsourcing and contracting
14.Reliance on consulting
services
15.Political lobbying

8. WORLD-CLASS MANUFACTURING:
WHAT IT TAKES?
Methods of world-class manufacturers:
 Competitive Analysis:
o Operations cost efficiencies, speed to market, RnD, rapid
supplier delivery, logistics, real time delivery, zero defects,
zero inventory.
 Production and Supply Chain Management:
o Collaborative planning, forecasting, delivery to point of use,
supplier managed inventory
 Customization:
 Building to order, global sourcing
 Electronic Commerce:
o Supply management, purchasing, internet ordering and
tracking
 Compensation Systems

9. MANAGEMENT-BY-ACCOUNTING:
ANTI-THESIS OF TOTAL QUALITY
• Leads to decision making by analysis of financial spreadsheets
rather than by consideration of the factors that lead to
organizational excellence and world-class quality.
• Encourages short-term cost cutting instead of long-term
improvements to quality, value, and competitiveness.
• Leads to narrowly focused leadership of companies based solely
on short-term financial considerations rather than broader
thinking that encompasses all factors that contribute to
organizational excellence and make a company competitive.

10. KEY GLOBAL TRENDS
• Growing irrelevance
of distance.
• Shift in the rates of
growth of countries
• Rise of megacities

11. INTERNATIONAL QUALITY
STANDARDS
ISO 9000
 Only quality standard with
international recognition
 Deal entirely with standards to be
followed
 Establish quality management
procedures via:
oLeadership
oDetailed Documentation
oWork Instructions, and
oRecordkeeping
ISO 14000
 A series of environmental
management standards that
contain five core elements:
oEnvironmental Management
oAuditing
oPerformance Evaluation
oLabeling, and
oLife Cycle Assessment
 Accepted worldwide, with ISO
14001 which addresses
environmental impact of activities
www.iso.ch and www.asq.org

12. REFERENCES
Prof. Angelita Ong Camilar-Serrano, DBA (candidate)
Total Quality Management
Unlimited Books Library Service & Publishing, Inc., c2016
James R. Evans and William M. Lindsay
Total Quality Management, 10th Edition, Philippine Edition
Cengage Learning Asia Pte Ltd., c2019