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Technical Paper

Increasing the Value of Innovative Car Dealership's Management

1997-02-24
970760
Dealership's management must be innovators in today's competition. They must increase customer satisfaction by creating Value-Added service and product and also increase total dealership profit. The basic premise of using “Value-Added” is also called Common Sense Management (CSM). CSM can be then defined as: A business is a system of resources used for creating value. Management's function in the business is to find ways to increase system productivity, where system Productivity = Value Created divided by Resources Expended ( ). This is a relatively easy formula to learn, but not many businesses today live by it. Value-added management (VAM) is then the system that seeks to increase value while simultaneously eliminating waste. VAM can include a variety of quality tools and processes, such as total quality management (TQM), value-based decision making, and reengineering.
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