Managing quality Flashcards
Quality -
- it meets the needs & expectations of the customer.
How to judge quality (7)
- Design (looks, style, features)
- Functionality (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 (ease of gaining refunds, guarantees, warranties)
- Price/value for money (the price reflects the quality of the product)
Consequences of quality issues (6)
- Loss of customers (as customers are dissatisfied with the product and therefore will not return)
- Reputation of the business goes down (difficult to attract new customers)
- Costs of recalling, scrapping or re-working/re-making (products that are faulty or not up to the required standard)
- Costs of replacements or refunds
- Costs of reducing the price of products that no-one wishes to buy (these products may not generate a profit)
- Legal action might be taken against the business
Consumers are more…(3)
- Knowledgeable and demanding
- Prepared to complain about poor quality
- Able to share information about poor quality
Business benefits of greater quality (5)
- Customer satisfaction
- Repeat purchase
- Customer recommendation
- Lower marketing costs
- Higher customer loyalty
How to measure quality (6)
- Level of product returns
- Mystery shoppers
- Customer loyalty
- Customer complaints
- Customer satisfaction rates
- Failure/reject rates
Quality control:
Traditional method of checking quality. All or a sample of products are checked at the end of the production process/after a service has been completed.
Quality control benefits (4)
- Protects the standard of the product
- Customers, in theory, will not receive a sub-standard product, but depends on whether 100% or a sample of products are checked
- Specialist trained inspectors are used to check quality, leaving operatives free to complete other tasks
- Opportunity to receive feedback from customers that have received a service
Quality control drawbacks (4)
- Wasteful approach; products that do not meet the quality control requirements are often scrapped
- Workers less likely to take responsibility for errors
- High cost of inspectors
- Checking of services (questionnaires, happens after the event; the damage of poor quality service may have already been done)
Quality assurance:
Quality assurance refers to the processes that ensure quality meets the requirements of customers. Quality assurance aims to achieve quality by organising every process to manufacture the good or provide a service to get it ‘right first time’ to ensure mistakes never happen. Unlike quality control, every member of staff will be responsible for contributing towards quality.
Quality assurance benefits (4)
- Costs reduced (less need for reworking and less wastage; therefore, average unit costs are reduced leading to increased efficiency)
- Better relationships between employees and management (leading to a possible increase in productivity)
- Staff motivation (should increase, as directly responsible and involved in the quality process)
- Consistent levels of quality can result in a competitive advantage (being gained over rivals resulting in increased sales and increased customer loyalty, as customer expectations are continually met)
Quality assurance drawbacks (3)
- Moving to a quality assurance system can be time consuming and staff may resist any change
- Training costs will be high
- Reliant on staff understanding of the importance of meeting quality standards & having the motivation to ensure the system works (some may view as a tick box exercise)
The importance of quality assurance to a business (6 and a conclusion)
- Increased customer loyalty leading to additional sales
- Strong brand image and reputation for quality; may attract new customers
- May be possible to charge a higher price
- Fewer returns, product recalls and replacements lowering costs
- Can help to attract and retain high calibre staff
- Reduces inspection costs
=> Overall, a competitive advantage can be gained
The balance of quality (2):
- Whichever method of improving or maintaining quality a business chooses to adopt, it will have a cost.
- A business would have to balance these costs against the benefits, to ensure the quality method chosen is appropriate to the business needs.
