The project deals with the application of quantitative techniques in business and economics. It focusses in the field of quality management which makes use models to increase the efficiency of the business. The models that the business makes use are linear programming model, Transportation and Assignment models and finally the Network models. The models helps diversify the business operations so that it can dominate the market and serve more customers. Since the aim of every business is to increase its market dominance therefore these models play a crucial role in helping the management make proper decisions that will assist the business dominate the market.
The field that we have chosen is quality management, and it applies quantitative methods to improve the operation of the business. Most businesses usually apply quality management to provide customers with the best types of products or services by coordinating their activities, leading to increased effectiveness and increased efficiency (Samson & Terziovski,2019). Quality management assists the business in monitoring the quality of its products it offers to the consumers. It also assists the business to increase its competitive edge that will facilitate customer satisfaction. For quality management to be successful, it must make use of quantitative methods. They are divided into four models the linear programming model, the Transportation and Assignment models, and the network models, which facilitate the successful implementation of quality management.
Quality management applies a linear programming model in ensuring the business acquires the correct data that will help the business determine the best information technology means to increase the profits for the business and decrease the operational costs (Prajogo & Sohal,2016). Linear programming methods assist the businesses in identifying the solutions they need for their operational problems and defining the issues that may alter the desired and figuring out an answer that delivers the results they need. It makes use of software packages that facilitates linear programming processes in quality management. It is used in the following areas in business.
The linear programming methods assist in solving problems relating to the production process. It helps in accumulating data for a business that produces multiple products and helps calculate how much of each product can be produced and maximize on profits (Benson & Schroeder,2019). The use of an information system helps businesses analyze numerical data that will help the business develop a plan that will help it maximize its profits.
It is the key aspect of the marketing strategy used by the business. The marketing mix assists in quality management by determining how much of its marketing budget will be used for advertising and marketing. The linear programming simulation is used to measure the type of marketing platforms capable of delivering the most qualified leads at the lowest cost. It assists in establishing the relative prices of each medium and establishes the most economical mix to maximize profit. Since establishing a cost-effective marketing mix will save operational costs for the business.
The linear programming methods are used in quality management in solving the distribution problems for the products. The mathematical exercises will help the business determine the most cost-effective method of shipping products from the production zone to the warehouse. It will also assist the managers in calculating the most economical way of supporting the products that are being transported to retail outlets. It helps the business in maintaining an optimal amount of every product in stock depending on the demand for such products.
Linear programming is used in quality management by human resource planners to determine when to hire more employees who can assist in improving the business’s production process. The method is also applied in anticipating the times for increased demand for employees who will be responsible for serving the customers. Hence linear programming method is used in quality management that ensures enough employees are employed to serve customers while at the same time ensuring the proper operational cost of the business is maintained.
The transportation and assignments models are widely used in quality management for analysis of phenomena in business economics and support the right decision making that will facilitate continuous progress in the business (Curvin & Slater,2015). Transportation and assignment model focus on the management in making decisions that commit to providing quality transport services, which encourages pride in the worker’s efforts to deliver quality services to the business.
It utilizes a process that focuses on creating phenomena through the models that focus on creating strong quality management. It is achieved by proper management of the accumulated data by using statistical tools and embracing policies that emphasize quality rather than costs. The model is also designed to remove all the barriers that hinder employee participation and teamwork. It also facilitates effective communication between the management and the employees and provides a good working relationship to meet the organization’s goal. The model implements the following processes.
The customers serve the most important component of the transport service. The customer’s demands changes in time. Hence, the transport model is mandated to provide customers with the presumed services that help keep the organization solvent and ahead of its competitors. The business must keep the transport sector ready to serve customers at any time.
The business’s transport services must always be ready to offer services at the lowest cost possible. The business is mandated to maintain a high level of excellence and value, which will maximize efficiency through constant improvement through proper decision making. It permits flexibility that permits innovation by putting resources into research, education, and the proper maintenance of the business’s transport system.
The transport model helps address service delivery issues for the customers, which may lead to poor work performance. An efficient transport system helps in providing quality services to the customers since it promotes proper management in enhancing personal accountability. The top management focuses on making decisions that support a new work philosophy that helps meet the cross-functional teams that ensure there is efficiency in terms of service delivery to customers.
To achieve the best economy and productivity, the business should focus on offering quality services to the customers. The business management should have adequate knowledge of the statistical quality control of the business. They must proceed and offer the right service quality characteristics that is achieved without dependence on the inspection. The statistical control assists in the accumulation of data, which provides the only way which facilitates transport operators in building quality services and providing the manager’s evidence of a very uniform, repeatable quality and effective cost of services.
Through the use of a transport model, it helps in providing uniform and reliable services. It helps address the business economies by measuring the quality of services being offered. The business is able to focus in offering the best quality services to customers in a long-term relationship. When the business introduces the strategy, it serves the business for a long period of time at no additional cost being experienced by the business. The business to improve the service delivery can partner with other transport agencies that can assist in coming up with joint planning to help serve the customers better than their competitors.
Quality management in the business can help build all transport activities and services, which can be achieved by the continuous examination, which will help in the identification of potential improvements. It is achieved by close cooperation between the business and the customers.
Improvement in offering transport services for the business requires continuous effort (Rodrigues & Zhu,2016). Quality management ensures that the management is always obligated to look for ways that will help reduce wastage of resources and improve the quality of services being offered to customers. It ensures that every department is committed to constant improvements. The business ensures that all the employees work towards achieving an improved transport service to the customers. Quality management helps the business use quality tools that will help in identifying issues that require attention. The business establishes quality teams that continuously work in meeting customer’s needs and assist in improving the is transport operations and services for the business. Therefore, improved transport services are achieved by focusing on achieving the present performance levels and breaking through existing performance levels to a new level that will offer efficient services.
In quality management, the assignment model is used in deciding the assignment of jobs to the employees that will assist in increasing the efficiency of performing duties by workers (Bell & Smith,2017). The employees are assigned duties according to their field of expertise that will improve the quality of output. Quality management also assists the business in incorporating machines that will increase production and the production of more quality products.
The assignment models also assist in deciding the route in which a traveling executive will have to use. It helps in coming up with the best method to use to assist in visiting different places to address the issues that customers face in terms of product delivery. The transport sector may fail to be effective in terms of service delivery to customers; therefore, the executive is mandated in addressing these issues, which will help them get first-hand information from customers and try as much as possible in addressing the issues they are facing.
The assignment model also assists in deciding the order in which different activities are performed. It guides the management on decision-making that will help in coming up with a better approach that will improve the business’s performance. It helps the management in accumulating data that will be analyzed by the management so that they can establish a more effective method that will help in achieving an improved performance for the business.
The assignment model is also applied in quality management in accessing the business’s input and output capabilities that will ensure it analyzes the cost of operation that will guarantee the business in achieving maximum profit. It usually focuses on quality management that will increase the use of machines and minimize the number of employees to help cut the business’s cost of operation.
Quality management is applied in the digital transformation of the business. Digital Transformation refers to the changes in a business associated with the application of digital technologies in all aspects of the business (Henriette & Boughzala,2015). Digital transformation assist in the quantitative analysis by extending further into the organization through intersecting more business functions and processes.
It ensures the business accumulates more data due to increased mobile connectivity and cloud computing and big data analytics, which helps the business develop new ways of dealing with customers’ experience and sourcing for market opportunities.
Quality management network model has assisted in the reshaping of the operations of the business that helps in countering the widespread disruption which is experienced across the many established markets. The network model supports a new generation of services that facilitates disruptive business that allows everything to be connected and helps the business harness the power and value of the network, and uses the accumulated data in driving the business priorities.
Through the use of quality management, it helps the business in making informed decisions, for instance, rolling out new services or initiatives or using the network model in minimizing the cost of operations. The network model assists the business to use a systematic approach for analysis of a phenomenon in the business economies that use of Internet of Things in predicting the exponential growth of the business. The digital economy is used in representing a significant opportunity for the business since the wireless connectivity is capable of moving beyond the laptops into numerous other consumers.
The network model infrastructure in order to maintain quality management in business it must prevent any disconnect, especially in terms of access to data or the operational processes that takes place in the daily activities.
Quality management of the organization is also achieved by having a reliable IT infrastructure, which will help the business to dominate the market. The IT technology is referred to as a strategic asset which defines the success of most business in the digital economy. Software defines networking assists the business network complexity due to the accumulation of data while at the same time, reducing the time and the cost that is incurred in introducing new services in the business.
The network model assists in keeping the business open since it allows for quality management that facilitates automation through the integration with a wide range of commercial, open-source, and the custom-developed toolsets. Due to the quality management, it enhances flexibility in the network, and it becomes highly responsive to the changing conditions, for example, the growth of the business.
In quality management, the business makes use of the network model as a marketing tool. Network marketing relies on the network to grow the business. It makes use of three types of strategies to make money. They include lead generation, recruiting, and enhancing proper management. The business makes use of the following types of network marketing, which helps in boosting the performance of the business.
In this type of marketing the business sign up for the business affiliate program so that they can sell their products or services. The affiliate program helps boost the sales of the business since it is able to reach wider markets. The affiliate program assists in the accumulation of data about customers since it creates traffic, which helps target potential markets.
In this, the business must recruit some employees who will be involved in marketing the products of the business. It is an e-commerce service, and the employees focus on driving traffic to business website, which helps in boosting sales since it targets potential customers. Hence it assists in achieving quality management in the business since the marketing strategies target new markets.
In quality management, the network model focus on the digital cohesion of the business with the aim of providing customers with enhanced services. It helps build a network economy for the business since it usually makes the business intelligence available from the network, since it focuses on empowering the data-driven strategy for the business. The network technology helps identify the business-critical data, especially the performance, cost, and risk that will help ensure the business improves its performance.
In quality management, the network model assists the management to come up with a decision that will focus on technological innovation through the convergence of the business, the customers, and the connected devices, which help in driving new engagements and revenue opportunities for the business. It helps the business in embracing a strategic technology platform that is well structured and well-integrated, which will help in venturing into new markets to improve the performance of the business.
Hence the business can achieve a systematic approach to dominate the market through the use of technological innovation since it serves as an overhead towards the business dominating wider markets. It also assists in quality management since IT technology is very reliable, and the business is capable of accumulating data, which will assist in the proper management of the business operations.
The quantitative methods above will be very important in the transformation of business since they will apply a systematic approach that will focus in technological innovation which will boost the operations of the business activities. Quality management helps the business to apply various quantitative methods which assist the businesses to take the right data driven decisions will assist the business dominate the market. The aim of every business is profit maximization therefore through quality management and proper use of the above models the business can establish a strategy that will focus in targeting potential customers who will boost the sales of products. Also quality management will also help the business venture in promising markets which can help boost its sales.
Quality management will also help the business accumulate enormous data about the market which will help the business understand the customers expectations about the products they need. Through this the business will be able to achieve customer satisfaction since the business will focus in providing quality products to the customers. The models will also facilitate quick achievement of the business goals towards automating its business activities. The models are very crucial towards the success of the business since they help in proper interpretation of data and transform it into knowledge that helps the business diversify its operations and boosting its sales and the business will maximize on profit.
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