Unanticipated side effects of successful quality programs: exploring a paradox of organizational improvement

@article{Sterman1997UnanticipatedSE,
  title={Unanticipated side effects of successful quality programs: exploring a paradox of organizational improvement},
  author={J. Sterman and Nelson P. Repenning and F. Kofman},
  journal={Management Science},
  year={1997},
  volume={43},
  pages={503-521}
}
  • J. Sterman, Nelson P. Repenning, F. Kofman
  • Published 1997
  • Economics
  • Management Science
  • Recent evidence suggests the connection between quality improvement and financial results may be weak. Consider the case of Analog Devices, Inc., a leading manufacturer of integrated circuits. Analog's TQM program was a dramatic success. Yield doubled, cycle time was cut in half, and product defects fell by a factor of ten. However, financial performance worsened. To explore the apparent paradox we develop a detailed simulation model of Analog, including operations, financial and cost… CONTINUE READING
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