Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

3.4 Decision making to improve operational performance > 3.4.4 Improving Quality > Flashcards

3.4.4 Improving Quality Flashcards

1
Q

What is “quality” ?

A

The features of a product which allow it to meet the expectations/ satisfy the needs of customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Examples of tangible measures of quality: (6)

A
  • appearance
  • reliability
  • durability
  • functions (added extras)
  • after-sales service
  • repair and maintenance needs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Examples of intangible measures of quality: (5)

A
  • brand image
  • reputation
  • exclusiveness (luxury brands)
  • staff treatments
  • environmental/ ethical values
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Examples of quality objectives: (5)

A
  • improving customer satisfaction ratings
  • reducing customer complaints
  • reducing levels of product returns
  • reducing scrap rate
  • improving punctuality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Why is high quality important to a business ?

A
  • 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
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Why is gaining a competitive advantage important to a business ? (2)

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Why does quality impact on sales volume ?

A

If a product meets the needs of consumers, demand will rise

OR

If income rises, demand for high-quality products increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Why does quality impact a businesses USP ?

A

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 well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How does quality impact selling price ?

A

Customers will pay higher prices for a product with high quality and a USP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How does quality impact price flexibility ?

A

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 well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How does quality effect cost reductions ?

A

/

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

How does quality effect brand loyalty and firm’s reputation ?

A

/

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is a “quality system” ?

A

The approach used by an organisation to achieve quality (quality control OR quality assurance)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is “quality control” ?

A

A system that uses inspection as a way of finding any faults in the completed good or service being provided

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the benefits of inspection ? (4)

A
  • 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
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the drawbacks of inspection ? (3)

A
  • 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
17
Q

What is “quality assurance” ?

A

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

18
Q

What are the benefits of quality assurance ? (5)

A
  • 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
19
Q

What are the systems of quality assurance ? (2)

A
  • Total quality management (TQM)

- Kaizen

20
Q

What is “total quality management” ?

A

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

21
Q

What is “kaizen” ?

A

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)

22
Q

What are the benefits of improving quality ? (7)

A
  • 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
23
Q

What are the difficulties of improving quality ?

A
  • 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
24
Q

What are the main costs of improving quality ?

A
  • 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
26
Q

What are the consequences of poor quality ?

A
  • damages a business’s reputation
  • lower sales volume
  • lower price
  • lower profits
  • more waste/ less productive use of assets
  • increased costs
27
Q

Why does poor quality damage a businesses reputation ?

A
  • customers remember adverse publicity far more than positive publicity

BUT

  • businesses that have little to no competition may not suffer drastically as there are no alternatives

OR

  • for businesses in a competitive environment, poor quality products are highly damaging
28
Q

Why does poor quality cause lower sales volumes ?

A
  • if product fails to meet standards expected by customer, demand will decrease
  • increase in incomes makes quality more important
29
Q

Why does poor quality cause lower price ?

A

Lower quality products will only be purchased if they offer value for money, so lower price to maintain sales volumes

30
Q

Why does does poor quality lead to lower profits ?

A

Bad reputation + low sales + low price = Lower profits

Lower profits = quality of products in the future may deteriorate

31
Q

Why does low quality lead to waste/ less productive use of assets ?

A

Materials are likely to be discarded if poor quality is detected too late

32
Q

How does poor quality cause increased costs ?

A
  • increased scrappage
  • higher costs for replacement materials
  • wages paid for staff who need to rework a product/ create a new product
  • cost of time checking/ transporting recalled product
  • increased administrative time
  • loss of reputation and good will = loss of revenue
33
Q

Why do products want to meet quality standards ?

A
  • improved marketing
  • improve brand image
  • legal necessity
  • increase prices
  • better suppliers (improved quality)

3.4 Decision making to improve operational performance (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions