Unit 17 Flashcards
Define quality.
Ensuring goods or services meet customer demand.
Define quality standards.
Minimum standard of products acceptable to customers.
Define quality control.
checking the quality of goods through inspection.
Define quality assurance.
System of setting agreed standards for every stage of production.
Explain importance of quality
When a business makes products free from defects with proper quality standards and proper designs, consumers find the product more valuable in the market and have a good impression of the business. This means they are more likely to buy more products from the business.
Types of quality standards
1) Design standards
2) Process quality standards
What is Design standards
Help a business create best possible product which consumers find more valuable compared to other products.
What is Process quality standards
Help business produce goods and services at lowest cost.
Importance of quality standards
Combining design standards and process standards helps a business gain a competitive advantage and market share.
Method to achieve quality control
Employing trained quality inspectors to check products for sampling. However, no every product has perfect quality and there may still be chance of poor quality product being produced.
Problems of quality control by inspection
○ Work repetitive and boring.
○ If inspection takes place at the end, problems cannot be solved early.
○ Takes responsibility of for quality away from employees.
Effect and reason for maintaining quality
1) developing brand image.
2) Keep current customers and attract new customers
3) Charge premium price
4) Encourages wholesalers and retailers to stock up on the product
5) Longer product life cycle
Explain reason for maintaining quality: Develop brand image
Customers will have a good opinion about the business and may even pay extra for premium products.
Explain reason for maintaining quality: Keep current customers and attract new customers
There will be customer loyalty and it will also attract new customers. It will also cause repeat purchases.
Explain reason for maintaining quality: Charge premium price
If customers think that a company makes good quality products, they will be willing to pay higher or a premium price compared to similar products from other brands.
Explain reason for maintaining quality: Encourages wholesalers and retailers to stock up on the product
If the product is of good quality, retailers and wholesalers are more likely to stock up on the product, because they know the product has a high market demand due to good quality.
Explain reason for maintaining quality: Longer product life cycle
Products that appeal to customers more will continue to be used by customers. This will lead to better quality products being used by customers longer and more time for maturity stage.
What are the measures to be taken to ensuer quality assurance:
○ Raw materials and components are required standard before entering production process.
○ Quality standards are agreed for every stage of the process.
○ Products are designed to minimize quality issues.
○ Employees know they have responsibility of production.
Benefits of quality assurance:
(1) Encourages teamwork and motivates employees.
(2) It reduces the cost of wastage and faulty products.
(3) Quality issues found when they occur.
(4) Inspection costs reduced.
(5) Higher chance to attain rewards, may lead to marketing.
