Increasing the Value of Innovative Car Dealership's Management

970760

02/24/1997

Event
SAE International Congress and Exposition
Authors Abstract
Content
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:
Add value to their customer
Eliminate waste
Meta TagsDetails
DOI
https://doi.org/10.4271/970760
Pages
11
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.
Additional Details
Publisher
Published
Feb 24, 1997
Product Code
970760
Content Type
Technical Paper
Language
English