Relation between productivity & quality When you have a high quality raw material, you may have

a low defect/reject. This may lead you to have high productivity. Productivity = Output / Input. Raw material is an input which can be transformed into a product (output). By the formula of Productivity, high quality of input (use small amount, less defect or reject) may lead to have high output and result on high productivity. Today's economic climate characterized by increasing competition and structural turbulence will require a higher combined level of productivity and quality than has been the case in the past. This paper has demonstrated the interlink ages among quality and productivity, and for this purpose, similarities of the two important concepts have been reviewed. Major quality factors, which are the possible sources for poor/high productivity, have been introduced, and finally, some advanced models have been presented and developed in which, the direct and indirect relationships between quality and productivity are addressed. This study has also highlighted the fact that improving quality plays a fundamental role in increasing operations productivity in organizations. When quality increases, the productivity also improves. This is because wastes and rework are reduced, and inputs are optimally utilized. Higher productivity enables an organization to reduce price and gain competitive advantage both in terms of price and quality. Customers also feel happy as they get value for their money. Since o rganizations bottom line improves, it raises the satisfaction level of all stakeholders, including employees. The significance of cost of quality has been discussed, while explaining the ISO certification requirements. Saving the cost of quality will have an immediate effect on the enhanced productivity of an organization. All these establish that quality and productivity are indirectly related. Thus, productivity should not now be misconstrued as labor performance alone. It is the sum total of efficiency and, therefore, linking productivity to wages should be objectively done to create a win-win situation. Relationship between Productivity and Costs

Summary: As more and more of a variable input is added to a fixed input: (i) Marginal and average productivities fall; (ii) As marginal productivity falls, marginal cost must rise; (iii) When the average productivity of the variable input falls, average cost must start falling as well; (iv) The shapes of the marginal/average productivity curves are mirror images of the marginal