3.4.4 Flashcards
(9 cards)
What is quality?
The extent to which a business meets customer requirements and expectations
List at least 4 benefits of having good quality
+ USP
+ Fewer returns/recalls
+ Competitive advantage
+ Charge higher prices
+ Brand loyalty
+ Positive reviews
+ Higher market share
List at least 4 consequences of having poor quality
- Damaged brand image and reputation
- Less returning customers
- Poor online reviews
- Higher level of recalls/returns
- Fewer retailers wanting to stock your products
- Lower price to encourage demand therefore lower profit margins
List at least 2 ways we can improve quality
- Market research
- More staff training
- Careful selection of suppliers
- Investment in technology
- Reviewing the production process to see if improvements can be made
What are the 3 approaches to managing quality?
- Quality control
- Quality assurance
- Total quality management
What is quality control? List 2 pros and cons
= The process of inspecting products at the end of production to ensure they meet required standards
+ Easy to implement
+ Less recalls (as it takes defects out)
- Inconsistent, not all products are checked
- Costly due to regular checks = Slows down production = Lower productivity
What is quality assurance? List 2 pros and cons
= The processes that ensure production quality meets the requirements of customers by checking quality standards at every stage of the process
+ Lower costs due to less waste
+ Increased motivation as the employees themselves to this
- Timely to implement
- Costly as employees may need training
What is TQM? List 2 pros and cons
= The focus on continuous improvement of products/services with improvement of the entire workforce
+ Eliminates cost of inspection
+ Higher motivation as workers are more involved
- Requires strong leadership
- Substantial investment in training means ROI not immediate for shareholders
List 2 ways in which employees and employers may resist changes that occur when trying to improve quality
Employees:
- Fear of change
- Lack of training
Employers:
- Cost of implementing training
- Avoiding the need to deal with workers fears
