Quality Flashcards
Whats quality?
Quality is about meeting the minimum standard required to satisfy customer needs. High quality products meet the standards set by customers - for example, a high quality washing-up liquid can claim that one squirt is sufficient to clean a family’s dirty plates after a meal. A poor quality washing-up liquid requires several squirts.
Why do firms benefit from independent organisations?
In many industries a quality standard is laid down by independent organisations such as the British Standards Institution (BSI). Firms benefit by adjusting the way they work to meet these standards. Businesses hope that the cost of improving quality will be more than covered by extra sales.
Producing faulty goods incurs repair costs and damages the reputation of the firm. What are the two main approaches to achieving quality?
Quality control - where finished products are checked by inspectors to see if they meet the set standard.
Quality assurance - where quality is built into the production process. For example, all staff check all items at all stages of the production process for faults. In this way everyone takes responsibility for delivering quality. Successful quality assurance results in zero defect production.
Whats total quality management (TQM)?
Introducing quality assurance requires Total Quality Management (TQM), in which managers try to bring about a change in business culture, convincing employees to care about how products are being made and to do their part to ensure standards are met.
Whats customer service?
Customer service is the experience a customer gets when using products made by the business. Satisfied customers make repeat purchases and recommend the product to friends, leading to additional word-of-mouth sales. Customers want to buy goods and services that meet their needs at a price they can afford.
Successful businesses define the quality or standard of service needed to meet customer needs. How can customer service be improved?
Ensuring that quality standards are met requires:
Training so that staff understand their role and responsibilities. For instance, asking every customer if they are happy with their meal.
Innovation or introducing new ideas and methods. For example, altering the menu every three months keeps customers interested and helps a café to stay one step ahead of the competition.
Listening to customers helps a business adjust its products to better match consumer needs and respond to any problems.
Price v customer service?
Customers compare price with customer service. Few customers expect high quality service when buying low priced items. For instance, travellers using a budget airline accept that they must pay for extras such as an in-flight meal. First class customers expect luxury seats and free champagne. The challenge facing all businesses is to remain competitive. They must keep prices competitive while offering a better service than rivals.
