Quality Flashcards
What is a quality product
One that meets the expectations of the business’s customers. Business have to ensure they have a clear understanding of the customers expectations
Customer expectation
Can very to the type of business - fast food - available quickly, cheap. Dinner - wide choice of food, range of wines and attentive service at table. Related to the production of goods and the provision of services
How can a business Identifying quality ?
Through market research. They must judge whether they’re product is meting the level of quality been identified. To do this - set targets.
How can a business measure quality?
Questioning customers - increasingly gathered through websites and socials. Quick to gather and analyses electronically
Asking employees - set target for employees in term of percentage of satisfied customer or faulty products
Checking production and sales data - have a lot of data to be analyses to measure quality. Maybe measure no of customers lost over period of time, or products that have been repaired before or after sold.
Consequences of quality problems
Higher production costs - customers given replacements, repairing faults in products, producing product which can’t be sold.
Loss of sales - if not receiving value for money, buy from competitors, reputation of bad quality - not attractive
What is Total quality management?
An approach to quality which everyone is focused on preventing errors occurring and on ensuring quality at each stage of pp
Advantages of TQM
Fewer defective products if all employees consistent and effective in inspecting.
Reduces costs and waste
Employees - more motivated as a result if additional responsibilities of checking quality.
Costs of maintaining quality
Inspection costs, staff training, products recalls
Benefits of maintains quality
Additional sales / customers
Good image / reputation
Higher prices
Why might a business face quality issues as they grow?
More difficult to achieve consistent quality. New employees - lack skills to procure consistently to agreed standards, new product may initially cause problems due to unfamiliar production methods.
How can franchising and outsourcing affect the quality issues and growth?
New franchises may not meet agreed quality standards. Same with outsourcing by the outsourcing company.
