Dynamics of a Relationship Between Quality and Productivity in the Automotive Manufacturing Industry

Management of quality and productivity as key performance areas in automotive industry is important for the success of companies in the industry. Conflict that is left unmanaged between quality and production departments can lead to overall deterioration of objectives and failure to protect the interests of investors. This study uses data from an automotive components manufacturing company to determine the nature and strength of a relationship between quality and productivity. Product recalls from customers and warranty costs are an embodiment of this conflict and costly to all involved. Results obtained show a positive relationship between the two variables: quality and productivity. Feedback obtained from interviews support the data analysis results and make recommendations for improvements to both variables.