3.4.4 Improving Quality Flashcards
What is “quality” ?
The features of a product which allow it to meet the expectations/ satisfy the needs of customers
Examples of tangible measures of quality: (6)
- appearance
- reliability
- durability
- functions (added extras)
- after-sales service
- repair and maintenance needs
Examples of intangible measures of quality: (5)
- brand image
- reputation
- exclusiveness (luxury brands)
- staff treatments
- environmental/ ethical values
Examples of quality objectives: (5)
- improving customer satisfaction ratings
- reducing customer complaints
- reducing levels of product returns
- reducing scrap rate
- improving punctuality
Why is high quality important to a business ?
- gain a competitive advantage
- impact on sales volume
- create a usp
- impact on selling price
- pricing flexibility
- cost reductions
- brand loyalty and a firm’s reputation
Why is gaining a competitive advantage important to a business ? (2)
Business achieve competitiveness through differentiation (when a product has qualities which cannot be replicated)
If no competitors can copy it they can maintain an advantage
Why does quality impact on sales volume ?
If a product meets the needs of consumers, demand will rise
OR
If income rises, demand for high-quality products increases
Why does quality impact a businesses USP ?
Quality can be used as a USP to increase demand
Combines tangible & intangible quality when providing a good/ service due to the association with the business
Common in niche markets
How does quality impact selling price ?
Customers will pay higher prices for a product with high quality and a USP
How does quality impact price flexibility ?
A high reputation for quality gives a business the ability to increase their flexibility
E.g Airlines can charge high prices because customers value the quality of service provided
How does quality effect cost reductions ?
/
How does quality effect brand loyalty and firm’s reputation ?
/
What is a “quality system” ?
The approach used by an organisation to achieve quality (quality control OR quality assurance)
What is “quality control” ?
A system that uses inspection as a way of finding any faults in the completed good or service being provided
What are the benefits of inspection ? (4)
- prevents a defective product from reaching the customer
- can prevent issues with whole batches
- more secure system than one which trusts every individual
- inspectors can detect common problems so mistakes can be corrected efficiently
What are the drawbacks of inspection ? (3)
- doesn’t encourage employees to improve the quality of their output
- inspection teams are expensive to employ (could be prevented if products are produced correctly first time)
- giving workers responsibility increases variety and motivates workers
What is “quality assurance” ?
A system that aims to achieve or improve quality by organising every process to get the product right first time and prevent mistakes ever happening
What are the benefits of quality assurance ? (5)
- workers have a sense of ownership of the product so gives them responsibility (Links to Herzberg’s theory)
- costs are reduced as less waste/ need for reworking
- higher and more consistent levels of quality
- allows workers to reject partially completed products which don’t meet standards
- reduces possibility of a faulty end product
What are the systems of quality assurance ? (2)
- Total quality management (TQM)
- Kaizen
What is “total quality management” ?
Where businesses consist of quality chains where the person ahead of them in the assembly line is treated as a customers and have a target of ‘right first time’
Every department contributes to quality
What is “kaizen” ?
A policy of implementing small, incremental changes to achieve better quality and/or greater efficiency
Suggested by employees (encourages them to identify ways of improving operations)
What are the benefits of improving quality ? (7)
- gaining a competitive advantage
- increasing sales volume
- creating a unique selling point
- more scope to increase selling price
- greater opportunities for pricing flexibility
- cost reductions
- greater brand loyalty and improving a firm’s reputation
What are the difficulties of improving quality ?
- difficult to convince people there is a quality issue
- difficult to agree on the best solution (if it impacts employees)
- quality systems give responsibility to staff which may not be received well
- resistance to change may be difficult to overcome
- introducing new methods/ retraining staff is time consuming
- keeping pace with changing customer views on quality may be difficult
What are the main costs of improving quality ?
- new training for staff to operate quality procedures
- heavy administrative burden to develop new systems and methods
- introducing/ updating information so quality can be monitored more effectively
- organising the testing of the quality of inputs/ resources
- allocating more time to workers with responsibility for quality
- installing equipment for quality testing
