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Refer to the scenario below to answer the following questions.
Embarking on TQM at Maestro Motors (Scenario)
Hector glanced at the watch and sighed. It was already 6:30 and he should be heading home for dinner. Dina would be mad because he was late again. He closed the main garage door at his auto repair shop, Maestro Motors. His two mechanics has just left even though the queue of cars waiting for repairs was longer than usual. He couldn't ask them to work overtime every night. Things were not working well at the moment and he needed to do something to get things turned around. Last night, over a beer at nearby pub, his pal Rodrigo told him about something called total quality management. It sounded like something he should look into and immediately, not in some vague future. It was not only the backup in work; he had received more than the usual number of calls from irate customers. Mostly it was about the delays in getting the cars repaired. Some, however, were about the repairs themselves. Some had even brought their cars back for re-work. Hector was determined to turn things around and that evening, after Dina and the kids were in bed, he started researching this total quality management on his computer. What he found was not only interesting, but in his mind quite doable and not that complicated.
-Next day Hector asked Juan to start keeping detailed records of every customer phone call. This way he hoped to identify how many calls were for making appointments and how many were for complaints about the work done and what were the complaints about. In order to improve the quality of the customer service he knew he had to be able to ___________________ all parts of the operation.
Pareto Optimal
A distribution condition in which making any person's situation better is impossible without causing harm to someone else.
Private Goods Consumption
Involves the use of goods that are excludable and rivalrous, meaning their consumption by one individual prevents another from consuming the same good.
Pareto Optimal
A condition where the distribution of resources cannot be changed without negatively impacting at least one person.
Private Goods Consumption
The act of consuming goods that are excludable and rivalrous in nature, meaning they can only be owned or consumed by one party and consumption by one person prevents consumption by another.
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