Topic 2.3.3 Managing Quality Business GCSE Edexcel Flashcards
quality
This is the standard of the product which is expected by a customers.
discuss the benefit of quality
It provides a USP if it’s better than rivals. Therefore the business has a competitive advantage. This is because it offers a product or brand that stands out as being of a higher standard. Therefore the business can charge a premium price. This is because customers are more willing to pay a higher price if the standard of the product is good. Therefore the business can increase revenue. As a result more profit can be made.
drawback of quality
To create a product that is of a high standard the business may have to use more expensive raw materials. This leads to higher costs of production. Therefore variable costs rise. As a result total costs increase. This may lead to less profit. Therefore the business will need to charge a higher price. This may cause some customers to shop around at rivals. Therefore it’s important to develop a marketing mix that is aimed at the right customers in order to achieve a profit.
quality control
This is a process which is used to check the standard of a product or service to ensure it meets customers’ expectations. This check is done at the end once the product has been made or the service has been delivered.
quality assurance
This is a process which is used to check the standard of a product or service at every stage of the production process. Everyone is involved in checking in order to ensure there are no faulty products (zero defects).
Warranty
Warranty is the guarantee by the manufacturer that it will repair any faults in a product for a specified period of time - often one year.
Business Culture
Business culture refers to the accepted attitudes and practices of staff at a workplace. It’s “the way we do things round here”.
Quality production methods
Quality production methods means things are right first time.
What are the consequences of quality?
Less wastage (of materials, finished goods)
Lower wage bills (not having to re-do that was done wrong in the first place)
Fewer managers (staff take more responsibility for quality)
Adv. of Quality control
Quicker method of achieving quality.
Disadv. of Quality control
Too late to correct errors once the product is made
Adv. of Q.A.
Leads to zero defects
Disadv. of QA
Increased staff costs due to more training
Adv. of providing a quality product
Adds value
