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The American Economy in the Late1980s

100101). Improved quality costs money in the shortrun (Armstrong and Symonds, 1991, p. 101). In the longrun, however, improving quality generates greater profitability. Poor quality means poor sales in the longrun. Therefore, expenditures on quality control may not be looked at as some sort of addon cost. Rather, they must be considered as integral production costs whether the product being produced is a good or a service. Return on investment has been found to be more a function of product quality than of price, regardless of the type of activity manufacturing, service, construction, and so forth (Miller and Camp, 1985, p. 88). Quality control refers "to a system . . ., by which assurance is sought that the output produced conforms to specific parameters that define product or service quality" (Lester, Enrick, and Mottley, 1991, p. 1). An effective quality control program enhances the ability of an organization to both reduce costs and improve productivity (Lester, Enrick, and Mottley, 1991, p. 2). As a consequence, effective quality control has a positive impact on an organization's profitability.Quality control, in order to be effective, must be integrated throughout the production process, whether the output of that process is a good or a service. Thus, a quality control system must be developed or adopted, and that system must be incorporated into the organizational struc


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