Topic 6 Flashcards
Give four benefits of high quality
Performance, reliability, cost effectiveness and retaining customers
Explain performance as a benefit of high quality
Performance - quality enables a business to provide high quality products/services and charge premium prices, therefore giving a competitive advantage
Explain reliability as a benefit of high quality
Reliability - high quality allows the business to meet customer expectations, giving the business a good reputation that their products are reliable
Explain cost effectiveness as a benefit of high quality
Cost effectiveness - quality management enables a business to reduce costs due to lower levels of mistake or waste, which increases profits
Explain retaining customers as a benefit of high quality
Retaining customers - high quality products or services helps to encourage repeat buying patterns, this leads to increased sales and profits
Give three approaches and measurements of quality
Value of sales, number of complaints and price
Explain value of sales as an approach and measurement of quality
Value of sales - happy customers will order more products and positive reviews will be posted on the company’s website or social media pages, which helps to attract new customers
Explain number of complaints as an approach and measurement of quality
Number of complaints - a reduction in the number of complaints usually suggests greater customer satisfaction
Explain price as an approach and measurement of quality
Price - customers will be more willing to pay a higher price for a product which is considered high quality
Give four systems that ensure quality management
Total quality management, quality assurance, quality control and ISO 9000
Explain total quality management as a system that ensures quality management
TQM forces a business to consider quality in all aspects of the business, from design through to sales activities. It is designed to prevent errors from happening. The manufacturing process is investigated at every stage. Employees will follow the approach of ‘right first time’ or ‘zero mistakes.’ It is a method of reducing costs and improving efficiency.
Explain quality assurance as a system that ensures quality management
Quality assurance is about making sure products are produced to the correct standard of quality. It is about making sure faults don’t happen in the first place. Quality assurance ensures that quality is regulated at every stage of the business process. It ensures that the business provides high quality products/services with zero defects. It also follows the ‘right first time’ or ‘zero defects’ approach.
Explain quality control as a system that ensures quality management
Quality control involves the inspection of product or service delivery. An inspector will check that products meet the minimum acceptable quality standards. Products will be tested before they are dispatched to the customer. This reduces the chance of faulty products reaching the final customer.
Explain ISO 9000 as a system that ensures quality management
ISO 9000 is a set of international standards of quality management developed to assist businesses to effectively document the quality system elements required to operate an efficient quality system. It is a system to ensure that firms set quality standards and then monitor their actual performance in relation to those standards. It helps to assist a business in providing customer satisfaction, complying with regulatory requirements and achieving continual improvement in respect to product and service.
Give five advantages on the need for a quality policy
Improved quality may lead to greater customer loyalty
It may improve the brand image
The business may find that quality adds value to the firms products, which allows premium pricing
The business may find themselves with a competitive advantage, and gives them a USP
Fewer complaints from customers
