Abstract

This study focuses on the impact of product quality improvement and supply chain capabilities on reducing operational costs through agile operation. It highlights the significance of adopting agile operation principles and practices to enhance product quality, optimize supply chain operations, and achieve cost efficiencies. The study underlines the importance of continuous improvement processes, such as Lean Six Sigma, in identifying and eliminating inefficiencies, defects, and waste to improve product quality and reduce costs associated with rework and warranty claims. Additionally, it emphasizes the role of agile supply chain capabilities in minimizing inventory carrying costs, production disruptions, and transportation expenses through efficient inventory management techniques. The research emphasizes that integrating product quality improvement and agile supply chain capabilities drives down operational costs by streamlining processes, reducing waste, and fostering a culture of continuous improvement. Overall, this study highlights the critical role of product quality improvement and supply chain capabilities in reducing operational costs and achieving operational excellence through agile operation practices.

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