Here’s the plot: After a customer announces that his company will accept shipments only from suppliers whose products have been manufactured strictly to specification, a fictional supplier struggles to conform to the new requirements. To learn more about efficiently making products to specification, the president of the company visits Marks & Spencer, a retailer well-known at the time for the high quality of its products. After computing his company’s quality costs, the supplier learns that 15 to 20 percent of its costs are due to poor quality. Subsequent improvements allow this supplier to overcome its quality challenges.
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