Quality, defined as 'fitness for use', is essential for global competitiveness, focusing on both product features and service attributes for industries. Companies must produce world-class quality through Total Quality Management and consider various factors affecting competitiveness, including business/government relations, family influence, and education. Successful global competition requires investment in R&D, high-quality infrastructure, and technology, as well as cooperation among business, labor, and government.

1. CHAPTER-3
QUALITY AND GLOBAL
COMPETITIVENESS

2. QUALITY
• Quality means “fitness for use". Can be
achieved through ‘productservice features' and
‘freedom from deficiencies’
• ‘Product features for manufacturing industries
encompass,performance,reliabiblty,durability,
ease of use,serviceability,aesthetics,customers
choice options, brandcompany image
• Service features for service industries
encompasses,accuracy,timeliness,completeness
,friendleness,courtesy,knowledge,reputation
customer needs etc

3. QUALITY MANAGEMENT
• Ensure both ‘quality of design’ and ‘quality of
performance’
• New ‘quality’ is all about
organization,strategic,for every one, working as
a system, led by management, reduces cost,
work for many and improvement
• New quality is now called ‘ world class quality’
and to achieve the same is called ‘ total quality
management’

4. QUALITY AND GLOBAL
COMPETITIVENESS
• Smallbig companies which used to compete on
localregionalnational level have now to
compete against other companies throughout
the world
• Only those companies which are able to
produce world class quality can compete
• Manufacturing strategy developed quality
production ,doing things ‘right first time, every
time,
• The focus is on ‘best cost’ and ‘ best quality’

5. FACTORS AFFECTING
COMPETITIVENESS
• 1-Businessgovernment related factors- In US
,the businessgovernment related factors for
competitiveness were directed towards short
term profit, excessive medical costs and liability.
These factors added cost but not value
• The businessGovernment must work together in
positive & constructive partnership, ensuring
non-value added cost are minimum
• This requires restructuring of financial, legal and
medical systems to achieve competitiveness in
world market

6. Factors affecting
competitiveness(contd.)
• 2-Family related factors- Families are the
most important human resource development
agencies in order to ensure productive
employees and become
knowledgeanle,motivated and quick learner
• 3-Education related factors- Higher is the
quality of entry –level employees, the faster they
become productive employees and contribute to
competitiveness of the company.

7. INDICATORS FOR COUNYRY,S COMPETITIVE
STATUS
• Four critical indicators of a country's competitive
status are
• 1-Standard of living
• 2-Manufacturing productivity
• 3-Investment
• 4-Trade
• The ability of a country to compete in the
manufacturing arena directly influences the
quality of life in that country

8. Components of competitiveness
• 1-Investment in R & D
• 2-Industrial extension
• 3-Monitoring of best manufacturing practices
• 4-Investment in high technology infrastructure
• 5-Technology transfer
• 6-Industrial exports
• 7-Education reforms and investment
• 8-Tax incentives

9. To be successful in global
market
• A manufacturer must be able to outperform
foreign competitors in terms of ‘quality’ and
‘productivity’
• Also the country should have industrial policy
aimed at providing direction and incentives to
simulate exports and also simplifying export
financing to help smallmedium scale
manufactures.
• The industrial policy should also simulate
education reform and investment in engineering
and science etc

10. Competitiveness enhancing
manufacturing technologies
• The competitiveness- enhancing manufacturing
technologies are
• 1-CNC machine tools
• 2-Flexible manufacturing
• 3-Computer aided design
• 4-Automated inspection
• 5-Material handling robots
• 6-Automated warehouse equipments
• 7-Assembly robots

11. Human resources and
competitiveness
• The philosophical constructs underlying the
human-resource aspects of the competitiveness
of Japan and Germany are
• 1-Co-operation among business,labour and
Government
• 2-High quality education and training
• 3-Employee involvement and empowerment
• 4-Leadership at all levels
• 5-Team work

12. GLOBAL ECONOMIC
INTEGRATION
• During the last decade of 20th century ‘global
economic integration’ became a fully
institutionalized reality
• The economies of industrialized nations of the
world became so integrated that any
environmental factor that affects one nation
affects all other nations in varying degrees
• Though it has promoted global trade and co-
operation, economic downturns in one country
can have a ripple effect ,which can spread
quickly to other countries.

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