Harn Company and Ocala Company compete in the same industry. Each company is located in a large western city, and each employs between 300 and 350 people. Both companies have adopted a total quality management approach, and both want to improve their ability to compete in the marketplace. They have installed common performance measures to help track their quest for quality and a competitive advantage. During the most recent three-month period, Harn and Ocala generated the data that follow.

1. For each measure, indicate which company has the better performance.
2. Which company is more successful in achieving a total quality environment and an improved competitive position? Explain your answer.

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Harn Company Ocala Company Performance Measures Production performance: Financia Nonfinanci Financial Nonfinancial Equipment utilization rate 89.4% Machine downtime (in machine hours) Delivery cycle time: On-time deliveries Purchase-order lead time (hours) Production cycle time (hours) Waste time (hours) 92.1% 17 14 96.5% Customer satisfaction: Customer complaints Scrap and rework costs Field service costs $14,390 9,240 2 13,680 7,700