When Hewlett-Packard Simplified Its Contracts and Reduced Them from 20

question 187

Short Answer

When Hewlett-Packard simplified its contracts and reduced them from 20 pages to 2 pages, it was engaging in
quality/cost studies.
statistical process control.
getting closer to the customer.
value-added analysis.
benchmarking.

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Definitions:

Investment Center

A business unit within an organization that is responsible for its own revenue, expenses, and investments, and is analyzed for profitability.

Service Department

A segment within a company that provides support services to the production departments or other direct operational areas, helping them operate efficiently.

Charge Rates

Prices or rates established for services provided, often used in professional industries like law and consulting.

Residual Income

The excess of divisional income from operations over a “minimum” acceptable income from operations.