future managementhe CRITICAL THINKING ACTIVITY Have We Spoil

future management.he CRITICAL THINKING ACTIVITY Have We Spoiled Customers? lain the trends that are arecting the future of qualit \"If you want to understand how the worldwide qualit movement has benefited consumers, just look at automo biles. What used to be considered a luxury option is now jus standard,\" said one quality manager. \"That is precisely the problem,\" said another quality manager, \"We have spoile the consumer. Now customers will never be happy no mat ter what we do.\" Join this debate. What is your opinion con cerning the following questions? 1. What features in the modern automobile are customer What fatures in the modern automobile are customer driven? 2. Henry Ford once said something to the effect that the customer can have any color Model T he wants, as long as it\'s black. How did the world evolve from Henry

Solution

ANS 1

The main reason for not using new automated technologies is because it leads to capital investments (adding to fixed costs). With added fixed investment to cost structures the vulnerability of a company to downturns becomes very high. IF the demand falls the fixed cost becomes a burden to be carried. Large companies are able to carry out such automation because of the large cost base they have and thus tide off any such downturns.

ANS 2

Modern technology can help a company reduce the quality errors and also reduce the manpower to be carried for the production process. It can also help in reducing time to market for a product helping save time and wastage of material leading to savings in working capital. Products that are superior in quality are able to demand premium pricing and thus improving margins of the company. If a company feels that there will be a n extended period of high demand for the product then it can invest and thus have a larger fixed cost base and thus reducing the variable part and have better margins as production increases.