Impact of poor quality

Question 1

What are the Consequences of poor quality:

Answer 1

Reputational Damage

Fewer repeat customer

Fewer new customers

Lower revenues

Higher costs - Reworking (products that were procured poorly, so need to be reproduced), Scrap costs (because a product was made poorly, you’ll have to pay for it to be scrapped), Paying staff to deal with complaints, marketing (spend more on marketing, to try and improve the reputation)

Motivation of the workforce (Telling staff that the quality of their products is low in standard, that people are complaining about their work)

Recruitment problems - People might now want to work in a place with a reputation of bad quality, as it will look bad on their CV, but also it’ll probably be stressful working in a place with low standards.