Quality Improvement and Cost Reduction in Product Development

The journey towards improving product quality and reducing production costs can be challenging and often met with skepticism. However, a strategic approach can yield remarkable results, offering a pathway to enhanced competitiveness and consumer satisfaction.

Current Scenario Analysis

Observations

The article (A Few Conceptual Of Management Effectively By Some Different Standpoint) published in 2016 highlighted the importance of improving quality and reducing prices to stay competitive. Despite initial reluctance from many, recent trends indicate a shift, with some domestic consumer products compromising on quality to compete in the market. Notably, this trend is not prevalent in the export-oriented market.

Global Market Influences

The global market dynamics have influenced a reevaluation of quality and pricing strategies. While the previous article primarily focused on effective management, the necessity to address the interplay between price, quality, and market demand has become evident.

Strategies for Enhancing Product Quality

Ongoing Innovation

Internal innovation and quality enhancement through dedicated research efforts involving foremen, technical staff, and experienced workers can significantly bolster product quality without substantial upfront investment.

Collaboration for Quality Improvement

University Partnerships

Collaboration with universities for research and development, as successfully demonstrated by Taiwan-China, can enable effective quality enhancement at a reasonable cost. This entails establishing an innovation fund from annual profits.

Efficient Cost Reduction Methods

Labor Productivity

Increasing labor productivity can lead to reduced production costs, provided the quality standards are maintained. Rewarding production line workers for increased productivity is a viable approach.

Optimizing Resource Utilization

Raw Material Efficiency

Encouraging production employees to adhere to raw material saving norms, with direct bonuses linked to achieved savings, can be a valuable avenue for cost reduction.

Proactively engaging with consumers, particularly through direct interactions at dealers and stores, provides indispensable insights that can drive demand stimulation. This aligns with the long-term benefits of prioritizing consumer satisfaction.

Long-Term Business Development

Strategic Priorities

Emphasizing product quality and production cost optimization aligns with long-term business sustainability, ensuring a robust market presence and consumer loyalty.

 

QUALITY IMPROVEMENT PRODUCT AND CUTTING PRICE OF PRODUCTION COSTS ACCORDING TO SOME REFFERENCES TO SUGGEST

    In the article (A Few Conceptual Of Management Effectively By Some Different Standpoint), it was issued at 2016. While I was during mentioned to improve quality and cutting prices of product to compete.

 

Almost everyone thinks the matter to my mention is unreasonable.

 

The present in time, I realized that there are some domestic consumer products has cut a few quality standards to compete (I am eliminate to any export products). I don’t thing almost domestic manufactures and services are manage and development in this direction.

The previous article has an overall content of management effectively. Consequently, I did  not delve out the matters of price and quality.

    After a lot of  to consider this the matters.

I'm suggest to some feasible options to increase product quality, concurrently to lower producing cost. 

        Firstly, I want to mention the issue of product quality.

Of course, I do not to discuss to any new investment. Be course of any large capital to borrow or to mobilize it's a high risk for more.

 

    - A priority in this option is an innovation and quality improvement  from the department internal of Business.

 

We can be able to encourage some foremen, technical staffs and some high skill experiences worker to join the research group to work from overtime.

 

Of course, businesses should be pay of a income to encourage to theirs intellectually for the research of Business to ask.

The matter mentioned-above will be reduced costs more than borrowing.

 

    - Another option is to contract of research to the matters with a some universities for a reasonable fees (Taiwan-China has been successful this model effectively).

 

Businesses should be able to establish the fund of innovation and improving quality from annual profit theirs. 

 

        The next mention is cutting prices of producing. The priority is in building competitive prices.

 

    - First of all, we discuss to the issue of labor productivity:

 

In theory, the more labor productivity increases to impact of the production costs to decrease.

 The problem here is, how to encourage workers directly to increase productivity, while still maintaining quality standards of products.

 For the surplus of output due to increase labor productivity.

 

I will be proposed to reward to workers from 20 to 25 percent on the production line.

 

The remaining 75 to 80 percent of the difference due to increase productivity is use to reduce production costs.

    - The second issue I want to mention is encouraging production workers to save raw material norms.

Because, in the norm is always to allow of loss rate depending on each type of product.

 

I also recommend giving a direct bonus to workers of 15 to 20 percent of this savings value. And the remaining value due to saving raw materials is also a factor in reducing product costs.

 

I think most business can be usual to ignore these two items I mentioned-above.

 

The product costing department must link with some relevant departments and submit it to superior leaders to decide.

    Finally, if you want to maintain and developing your business.

 

I would like to seriously consider two issues of product quality and production cost.

Every Business knows that respect for consumers will be to bring for a long-term benefits.

To solve the problem of product quality in the direction of stimulating consumers to demand.

I recommend all manager should be to leave theirs desk to go down to some dealers and stores to listen to consumers feedback from distribution channels. 

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