Journal of Business & Economic Policy

The Relationship between Quality and Productivity Claude R. Superville, PhD; George Yorke, PhD; Mammo Woldie, PhD

Abstract
Quality improvement can be a vital way of increasing a company's productivity. A more uniform product results in less defective output, less items that are to be scraped and a decreased need for rework of non-conforming items. A more uniform product that conforms to manufacturer specifications represents an improvement in quality of conformance. This improvement in a product’s quality of conformance in-turn leads to increased productivity since the same level of production can be achieved at a reduced cost.

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