As an Amazon Associate I earn from qualifying purchases.

What is Annuity Relationship in Total Quality Management? PDF | Download eBooks

Learn Annuity Relationship definition in total quality management with explanation to study “What is Annuity Relationship”. Study annuity relationship explanation with TQM terms to review total quality management course for online MBA programs.

Annuity Relationship Definition

Annuity Relationship Explanation

When designing and selling products or providing services, the latest trend is that employees of operation and marketing work together. The view of customers is different for both operations and marketing. Operations consider the satisfaction of a large customer base with a product which will reduce costs of operations. However, marketing views the income from all the customers equally important. It is therefore important to focus on a specific group of customers that usually provide a lot of profit to the organization. For this reason, annuity relationship must be developed which means focusing on some key customers of the business which tend to provide long-term income to the organization.

Keep Learning TQM Explanations

What are Productivity Ratios?

An efficient use of resources by an organization is very important. Efficient use helps to reduce costs, in short saves ...

What is Lot Tolerance Percent Defective?

Lot Tolerance percent defective (LTPD) is the value of percent defective related to consumer's risk i.e. Type II error. The ...

What is Process Benchmarking?

Process benchmarking is a type of benchmarking that involves a company (initiator firm) to collect information regarding different processes from ...

What is Life Testing?

To improve the quality of products, reliability Engineering has been in practice nowadays. Engineers apply the concepts of probability in ...

What is Engineering Process Control?

The purpose of control charts is to identify variability in the process. Variations in the process can be of different ...

What is Control?

In any process, the activity of control is very important. Even though, the whole process is planned perfectly, there still ...