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0Summary of Chapter

10. A company can increase efficiency through a number of steps: exploiting economies of scale and learning effects, adopting flexible manufacturing technologies, reducing customer defection rates, implementing just-in-time systems, getting the R& function to design products that are easy to manufacture, upgrading the s!ills of employees through training, introducing self-managing teams, lin!ing pay to performance, building a company"ide commitment to efficiency through strong leadership, and designing structures that facilitate cooperation among different functions in pursuit of efficiency goals. #0. $uperior %uality can help a company lo"er its costs, differentiate its product, and charge a premium price. &0. Achie'ing superior %uality demands an organi(ation-"ide commitment to %uality and a clear focus on the customer. )t also re%uires metrics to measure %uality goals and incenti'es that emphasi(e %uality, input from employees regarding "ays in "hich %uality can be impro'ed, a methodology for tracing defects to their source and correcting the problems that produce them, a rationali(ation of the company*s supply base, cooperation "ith the suppliers that remain to implement total %uality management programs, products that are designed for ease of manufacturing, and substantial cooperation among functions. +0. ,he failure rate of ne"-product introductions is high because of factors such as uncertainty, poor commerciali(ation, poor positioning strategy, slo" cycle time, and technological myopia. -0. ,o achie'e superior inno'ation, a company must build s!ills in basic and applied research. design good processes for managing de'elopment projects. and achie'e close integration bet"een the different functions of the company, primarily through the adoption of crossfunctional product de'elopment teams and partly parallel de'elopment processes.

/0. ,o achie'e superior responsi'eness to customers often re%uires that the company achie'e superior efficiency, %uality, and inno'ation. 00. ,o achie'e superior responsi'eness to customers, a company needs to gi'e customers "hat they "ant "hen they "ant it. )t must ensure a strong customer focus, "hich can be attained by emphasi(ing customer focus through leadership. training employees to thin! li!e customers. bringing customers into the company through superior mar!et research. customi(ing products to the uni%ue needs of indi'idual customers or customer groups. and responding %uic!ly to customer demands.