4.3 Quality Flashcards
Why is quality imp
Creates USP
customer loyalty
higher sales and revenue
creates good reputation for brand
attracts new customers
Low quality leads to
lose customers to other brands
have to replace faulty products and repeat poor service, increasing costs
bad reputation leading to low sales and profits
Quality assurance
checking for quality throughout the production process
Advantages quality assurance
Eliminates the fault or defect before the customer receives it, so better customer satisfaction
Since each stage of production is checked for quality, faults and errors can be easily identified and solved
Products don’t have to be scrapped or reworked as often, so less expensive than quality control
Disadvantages quality assurance
Still expensive to hire employees to check for quality
Depends on employees following the instructions
Quality control
Quality is checked at the end of production process
Advantages quality control
Eliminates the fault or defect before the customer receives it, so better customer satisfaction
Not much training required for conducting this quality check
Disadvantages quality control
Still expensive to hire employees to check for quality
Quality control may find faults and errors but doesn’t find out why the fault has occurred, so the it’s difficult to solve the problem
if product has to be replaced and reworked, then it is very expensive for the firm
Total quality management (TQM)
Total Quality Management or TQM is the continuous improvement of products and production processes by focusing on quality at each stage of production.
Benefits TQM
quality is built into every part of the production process and becomes central to the workers principles
eliminates all faults before the product gets to the final customer
no customer complaints and so improved brand image
products don’t have to be scrapped or reworked, so lesser costs
waste is removed and efficiency is improved
