Increasing the Value of Innovative Car Dealership's Management 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. Most businesses still live by traditional management techniques that emphasizes strict financial measurements and controls. The system productivity formula stresses to business managers that their decisions must be value-based; in other words, Common Sense Managers make decisions that:
Citation: Nordgren, W., Sanders, D., Voss, K., and Leslie, J., "Increasing the Value of Innovative Car Dealership's Management," SAE Technical Paper 970760, 1997, https://doi.org/10.4271/970760. Download Citation
Author(s):
Warren E. Nordgren, David M. Sanders, Kevin P. Voss, John D. Leslie
Pages: 11
Event:
SAE International Congress and Exposition
ISSN:
0148-7191
e-ISSN:
2688-3627
Also in:
Value-Based Decisions for Automotive Engineering-SP-1266
Related Topics:
Total quality management
Productivity
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