Topic 3 - business operations (3. the concept of quality) Flashcards
Quality
The extent to which a product meets the customer’s requirements
Quality control
The practice of checking the product or service to make sure it meets the customer’s needs and is the right quality
Quality assurance
The confidence that the product or service meets the expected quality achieved by checks at different stages of production
Warranty
A guarantee that a product will be repaired or replaced if it breaks down or is faulty
Benefits of providing quality
Customer satisfaction, less waste, good reputation
Costs of providing quality
Extra staff training, more investment in equipment, testing and inspection and finding better suppliers
Risks of not providing quality
Product recalls, customer dissatisfaction, wastage, unsold stock and possibly legal action against the business
Product recall
When a large amount of defective or faulty products have to be returned to the manufacturer
Total Quality Management (TQM)
Every person is tasked with preventing errors and ensuring quality at every stage of the production process
Kaizen
Japanese strategy of continuous improvement by making small changes
Business culture
The collective beliefs and values that make a business act in a certain way
Quality circles
Small groups of staff who discuss problems and improvements in the production process
Methods to measure quality
Asking customers, asking staff, using mystery customers
Wastage
When unused or defective materials cannot be used in the production process, or when a product is not fit for sale
Brand image
The view of a business held by people and other businesses
