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Student Learning Objective 2

Explain the fundamental definitions of total quality management and continuous improvement.

Learning Objective B

Rank factors associated with productivity and competitiveness.

Content

The content of the Module B micro-lecture provides definitions of productivity and competitiveness. Factors inhibiting competitiveness are also examined. These factors tend to occur as either business- or govenment-related issues, family related factors and education related factors.

Slide 1: Productivity

  • Use a definition very similar to textbook
\[ \mbox{productivity}=\frac{\mbox{value of outputs}}{\mbox{cost of inputs}} \]

  • Traditional approach is to reduce denominator

  • US has had a long run of productivity increases that has sustained economic growth

Slide 2: Graph of US Productivity

Slide 3: Competitiveness

The report points out that there are wide variety of definitions of competitiveness. Main from an economics standpoint.

  • Competitiveness is the ability of a country to achieve sustained high rates of growth in GDP per capita (World Economic Forum)

  • Competitiveness is the degree to which a nation can, under free trade and fair market conditions, produce goods and services which meet the test of international markets, while simultaneously maintaining and expanding the real incomes of its people over the long-term. (OECD)

  • Competitiveness is the ability to achieve success in markets leading to better standards of living for all.

Slide 4: Factors Inhibiting Competitiveness

  • Business- and Government-Related Factors

  • Family-related factors

  • Education-related factors

Slide 5: Nearshoring

  • Nearshoring is a practice where a company partners with suppliers, manufacturers and other supply chain stakeholders located in a neighboring or nearby country

  • Three Main Reasons to Nearshore

    • Geographical closeness,
    • Cultural and Time Zone Affinities, and
    • Skilled Workforce

Source

Slide 6: Project Management and Competitiveness

  • Businesses compete in essentially the same categories that are monitor projects (project management)

Project Goals

Source: Meredith, Shafer, and Mantel (2018). Project Management: A Strategic Managerial Approach, 10th edition. John Wiley & Sons.

Slide 7: Final Comments

  • Manufacturing focused definition of competitiveness

  • What is impact of offshoring (using cheap labor) on productivity and competitiveness and near shoring?

  • What are methods to improve competitiveness?