3.3 The Concept Of Quality Flashcards
1
Q
What is quality
A
How well a product meets the needs and expectations of the customer
2
Q
What factors do you judge quality on
A
- Design; looks, style, features
- Functionality; it does the job well
- Reliability; acceptable level of breakdowns or failure
- Consistency; products meet the same quality standards time and time again
- Durable; lasts as long as it should
- Good after sales service
- Price/value for money
3
Q
What are the consequences of quality issues
A
- Loss of customers
- Reputation of business goes down
- Cost of recalling, scrapping, or remaking faulty products that do not meet required standards
- Costs of replacements or refunds
- Costs of reducing the price of products that no one wishes to buy
- Legal action might be taken against the business
4
Q
What are the benefits of greater quality
A
- Customer satisfaction
- Repeat purchase
- Customer recommendation
- Lower marketing costs
- High customer loyalty
5
Q
How can a business measure and identify quality problems
A
- Ask customers to complete a survey
- Mystery visitors
- Ask staff to check quality of work done
6
Q
How can a business maintain consistent quality levels
A
- Have good quality suppliers who are reliable
- Train staff to identify issues and to do their jobs properly
- Invest in equipment so staff have resources they need to do the job more effectively
- Inspect products at each stage of the process so there are no defects
- Involve staff in improving the process to find better ways of doing things and removing errors
7
Q
What is total quality management (TQM)
A
An approach to quality in which everyone is focused on preventing errors occurring and ensuring quality at each stage of the production process
8
Q
What are the advantages of TQM
A
- Quality is embedded into the organisation resulting in few quality issues
- Average unit cost reduced leading to increased efficiency
- Improved motivation for employees as they are accountable for quality
- Quality improvements can be easier to implement as all staff are part of the TQM process
- Business will see increased sales and repeat purchases from providing consistent levels of quality
- Improved brand image
- Avoiding mistakes helps control costs of redesigning or remaking products
9
Q
What are the costs of maintaining quality
A
- Cost of maintaining consistent levels of quality e.g. quality inspectors
- Cost of training to implement and maintain TQM
- Cost of time used for quality circle meetings
- Costs of maintaining quality such as auditing suppliers
- Reputation of the business may be affected negatively if quality standards are not met by outsourcing partners or franchises that are operating under a brand name
10
Q
What are the benefits of maintaining quality
A
- Increased customer loyalty leading to increased sales
- Strong brand image and reputation will attract new customers
- Possible to charge higher prices
- Fewer returns, product recalls and replacements lowering costs
- Can help to attract and retain high calibre staff
- Reduces inspection costs
11
Q
How do calculate unit cost
A
total costs/units output
