Dynamics of a relationship between quality and productivity in the automotive manufacturing industry

Abstract

Management of quality and productivity as key performance areas in automotive industry is an important aspect for the success of companies in the industry. Any conflict between these two key performance areas that if left unmanaged, can lead to overall deterioration of objectives and failure to protect the interests of investors and customers. Product recalls from customers and warranty costs are an embodiment of this conflict and costly to all involved stakeholders. This study uses data from automotive components manufacturing company to determine the nature and strength of a relationship between quality and productivity, with a attention to the automotive industry. In a research that includes primary data collection and analysis, as well as semi-formal interviews with stratified randomly selected participants, results obtained show a positive relationship between the two variables: quality and productivity in the automotive industry. The results obtained can be used to direct management efforts in automotive companies in areas of quality and productivity for optimum results, investor confidence boost, and customer satisfaction/retention.