
Concept explainers
Define (a) quality, (b) process, and (c) productivity. Why are they hard to define?
(a)

Define the term quality.
Explanation of Solution
Quality:
The quality can be obtained in many ways; the quality is attained when product or service manufactured or delivered with the defined specifications. If the product in the process meets the conformance to specifications of reliability, durability, serviceability, performance and customer’s perceptions, it is said to attain quality.
(b)

Define the term process.
Explanation of Solution
Process:
The sequence of the tasks that are interconnected with each other that results in the manufacturing of the product or delivery of the service, is termed as process.
(c)

Define the term productivity.
Explain why these terms are harder to define.
Explanation of Solution
Productivity:
The measure of efficiency that determines the ratio of the output with respect to input is termed as productivity. If the productivity is high then cost per unit is reduced, profit is increased supporting the higher wages and salaries.
Justification: The terms quality, process and productivity are harder to define because these are not constant and changes from times to time to ensure that the process is in control. And the defined quality or the process might not be as standardized as in manufacturing.
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Chapter 17 Solutions
Applied Statistics in Business and Economics
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