Introduction to Quality
Sultan Alhifayan
Wk 2 Assignment Total Quality
Part 1: How Japan caught up with the United States
After World War II, America was producing high-quality goods and saw it as a competitive advantage. At the same time, Japanese companies had focused on price. The U.S. failed to read the future and identify how they could sell their high-quality products at relatively low prices. Instead, they ventured into price reduction strategies to counter Japanese competition and compromised on quality. Essentially, America failed to adopt the quality management practices followed by Japanese companies due to a lack of market analysis and quality management strategies and a fear of losing their customer base.
Part 2: Technology adoption in small companies
Small companies have been reluctant to adopt new technologies because of two main factors: cost and value-addition. Small companies are primarily focused on using the most efficient processes to deliver quality goods and services. They want to be assured that the production process will generate returns for their businesses (Chouki et al., 2020). It is worth noting that new technology is capital-intensive. The purchase of equipment, workforce and maintenance are costs that small businesses are not ready to incur. Secondly, they are not assured that the new technologies will produce results immediately. Small companies are not willing to invest in technologies that may take years to pay back.
The cost perspective is one of the critical considerations in the adoption of new technology. Although the initial costs are high, the returns can significantly exceed expectations with the right manpower and good maintenance. According to Chouki et al. (2020), New technology helps small businesses improve the efficiency of production. Companies can produce goods quickly and in high quality, thereby reducing damages and losses and increasing sales revenue.
Reference
Chouki, M., Talea, M., Okar, C., & Chroqui, R. (2020). Barriers to information technology adoption within small and medium enterprises: A systematic literature review. International Journal of Innovation and Technology Management, 17(01), 2050007.
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