4 Improving Quality 32 Flashcards
What is quality?
Quality is the totality of features and characteristics of a product or service, which can satisfy customers expectations. (when consumer has a choice the quality is VITAL)
What are the consequences of poor Quality?
Loss of sales / Loss of reputation
May have to price-discount
Retailers may be unwilling to stock goods
Loss of consumer goodwill and repeat purchase
A good quality product will:
High level of repeat purchase therefore longer precuts life cycle
Make products easier to place (retailers more likely to stock products with a good reputation)
Allow brand building and cross marketing
What is Total Quality Management (TQM)?
Its a way of looking at quality issues, the business considers quality in every part of the business process - from design right through to sales
What are the pros of (TQM) ?
Should be deeply rooted in the company culture
Once all staff think about quality, it should show through from design to manufacture and after sales service (e.g Lexus or BMW)
What are the cons of (TQM) ?
Staff may not be convinced of management initiatives and may treat it as “hot air”, it requires the concrete program of Quality Control (QC) and Quality Assurance (QA)
To get TQM into the culture of a business may be expensive, as it will require extensive training among all staff
What is Quality Control (QC) ?
Traditional way to manage quality, based in inspection. Its when workers get on with producing as much as possible and quality control inspectors check that the output meets the minimum acceptable standards.
What are the pros of (QC) ?
Can be used to guarantee that no defective item will leave the factory
Requires little staff training, therefore suits a business with unskilled or temporary staff.
What are the cons of (QC) ?
Leaving quality inspectors to sort out may mean poor quality is built into the product (clothes that unpick quickly)
QC can be trusted when 100% of output is tested, but not when its based on sampling (Ford used to test 1 in 7 of its new cars; that led to quality problems)
What is Quality Assurance (QA)?
A system that assures customers that detailed systems are in place to govern quality at every stage of production, start with the quality-checking process for newly arrived raw materials and components
What are the pros of (QA) ?
Makes sure the company has a quality system for every stage in the production process
Some customers like the reassurance provided by keeping records about quality checks at every stage in production; they believe they will get higher-quality service and may therefore be willing to pay more
What is meant by KAIZEN (Japanese) ?
Continuos Improvement
What is a quality circle?
A group of employees who meet together regularly for the purpose of identifying problems and recommending adjustments to the working progress.
Benefits when improving Quality ?
A great deal of research shows staff like to take pride in their work, and that working to high quality standard is important.
Really high quality standards can boost price levels remarkably ( Waitrose 50$ champagne and 225$ champagne; so customers are willing to pay 222$ for a product they only need to pay 50$ )
Difficulties when improving Quality ?
If quality control is to be effective it must balance the costs against the advantages; 100% quality is possible, but it make the product so expensive that sales suffer.
