Study On Urban Industrial Product Quality’s Contribution On Economy And It’s Evaluation

Through the researches and practices on the relationship between quality andeconomic development by experts and scholars, we can find that, qualityimprovement will lead to economic growth has become a consensus. This paperstarted from a depth profile analysis on the connections between quality developmentand economic growth, then revealed the relevance between them.The two major issues studied in this paper are the structure of Quality and itsinfluence made on the Economic growth. The concept of “Quality contribution rate”is applied in this research.Firstly, based on defining the scope of the study and definition review of theresearch related, the other affirmed the productivity characteristics of quality. Then,analyzed the relationship between it and the progress of science and technology, labor,capital. The conclusions are: continuous quality improvement is the performance ofscientific and technological progress; quality is a factor of productivity, whichincluding progress in science and technology and management; quality, labor andcapital are three mutually independent but complementary factors of production, theycontribute to economic growth together. Based on the above research, author puttedthe quality factor into the classical production function model, and deduced theformula of production function including the quality factor. Then, we can calculate thequality contribution rate.In the construction of the Q index, the urban industrial product quality index,which reflects the quality level, the author built a quality index system of urbanindustrial products which based on the thoughts of total quality management andperformance excellence theory. This index system included both micro and macroquality management indicators. In the micro quality management level, indicators areselected following four issues: quality management processing and planning, qualitycontrol, quality assurance and quality improvement. In the macro quality managementlevel, indicators came from the four issues the government did on quality management:supervision and administration of quality safety, infrastructure of quality development,quality enforcement and support. Some of the indicators presents in both levels. Thereare FIVE level two indicators，TWENTY EIGHT level three indicators and SEVENTYONE observation indicators included in the thirdly level.Primary data of this study were collected by adopting expert questionnaire survey. Weights of each indicator are obtained directly from the output of learning algorithmof BP neural network. This is the measurement method of urban industrial productsquality index.Quality factors have been inducted into the review of Classical productionfunction approach in this study. A production function formula with quality factorswas deduced. The data acquisition of urban industrial product quality covered all8districts of Xuzhou city,71indicators acquired and the results were calculatedcorrespondently.The appropriate GDP, fixed assets investments and labor data were collected andintroduced into Eviews6.0. This empirical study works out a quality factors involvedregression equation and concluded the quality contribution rate was29.48%, whichmeans the certain percentage of economic growth derives from products quality.There are eight hypotheses have been tested in the regression analysis, herecomes the result: hypothesis1,3,4,6and8were verified and hypothesis2,5and7were failed the test. The detailed conclusions are as followed:Hypotheses past the test are:1. the improvement of industrial products qualityand the growth of urban economic present positive correlation;2. the improvement ofindustrial products quality contribute more than the growth of the labor force to theurban economic growth;3. Quality development infrastructure and urban economicgrowth have significant positive correlation;4. Government support and urbaneconomic growth have significant positive correlation;5. Quality security situationand urban economic growth have significant positive correlation. Indicators inhypotheses3-5are level two indicators of industrial products quality index.Hypotheses failed the test are:1. The improvement of industrial products qualitycontribute more than capital employed to the urban economic growth;2. Standardsand technical level and urban economic growth have significant positive correlation;3.Government quality enforcement and urban economic growth have significantpositive correlation. It should be noted that those two secondary level indicators(standards and technical level, government quality enforcement) and urban economicgrowth do have positive correlation but not significant enough.Based on the result of urban industrial products contribution rate, benchmarkingand evaluation research have been made by applying statistical method. Upper bound,intermediate value and lower bounds have been worked out through statisticalanalysis, therefore, the evaluating of industrial products quality contribution rate in different areas are objective.Based on the analysis above, an intelligent management system called “Urbanindustrial products quality contribution evaluating and measurement managementsystem” was designed, which including functions of data collecting, data management,indicator statistics and calculation, regional comparison and evaluating, automatesreporting. This system could visualize all the research results in this study and beoperated in quality management related department.