Final answer:
Businesses use SQC for continuous improvements in production, monitoring, and control processes to enhance product conformity and reduce costs by achieving economies of scale, where increased output leads to lower per-unit costs.
Step-by-step explanation:
Businesses utilize methods like Statistical Quality Control (SQC) to increase the effectiveness of production through continuous quality improvements. SQC involves using statistical methods to monitor and control a process to ensure that it operates at its full potential to produce conforming products. By consistently measuring the amount of material produced in a reaction and adjusting processes accordingly, businesses can enhance their productivity.
Implementing the least costly production technology and determining the optimal scale of production promote what is known as economies of scale, where the cost per unit decreases as the quantity of output increases. This concept explains why larger factories, like those of Costco or Walmart, can produce goods at a lower average cost than smaller ones. A focus on mechanized work environments and the production of identical products ensures efficient and standardized output, contributing to increased effectiveness.