Lesson 14 Flashcards
(26 cards)
What are quality standards?
Frameworks that help businesses manage processes to deliver consistent products/services.
What do quality standards typically include?
Requirements, specifications, guidelines, features, and processes.
Why are quality standards important?
They ensure consistency, fitness for purpose, and meet user expectations.
What is the primary reason for quality standards?
To satisfy customer expectations.
List additional purposes of quality standards.
Ensure reliability and safety
Comply with legal/regulatory rules
Control internal processes
Meet environmental and business objectives
How do quality standards contribute to business success?
Increase profits
Improve brand perception
Reduce costs/losses
Grow market share
Build customer loyalty
How do quality standards give a competitive advantage?
They ensure smooth, efficient operations and distinguish a business from competitors.
Name several types of quality standards.
ISO 9001 (quality management)
Environmental management
Occupational health & safety
Information security
Accessibility
Energy management
Food safety
What is a Service Level Agreement (SLA)?
An agreement between a service provider and customer that defines service expectations.
What does an SLA include?
Services provided, terms, KPIs, pricing, performance metrics, dispute resolution, penalties.
What are the three types of SLA?
Service-based (same for all clients)
Customer-based (tailored to each client)
Multi-level (customizable, “pick and mix”)
Name common components of an SLA.
Agreement summary
Description of services
Exclusions
Performance standards
Review schedule
Compensation
Risk/contract management
Who is a stakeholder?
Any person/group/org/community with an interest in a business’s actions.
How do suppliers benefit from quality standards?
By working with reliable businesses that provide consistent orders and payments.
What role does the government play in quality standards?
Regulates product quality and sets export/import requirements.
Why must businesses consider local communities?
They have a duty of care for local health, safety, and economic well-being.
Why are customers considered the most important stakeholders?
Their purchases drive revenue and profitability.
How do customers influence business success?
Through feedback, social media, loyalty, and word of mouth.
What helps businesses meet customer needs effectively?
Market research and adherence to quality standards.
What happens when customers receive poor quality?
Loss of loyalty
Negative word of mouth
Lost sales and revenue
Increased customer stress and dissatisfaction
How many people might a dissatisfied customer tell?
20 or more, especially through social media.
What operational issues can result from poor quality?
Wasted time and materials
Decreased efficiency
Higher costs
More repairs and maintenance
What are business-related effects of poor quality?
Damaged brand/reputation
Legal fees
Product recalls
Increased insurance and warranty costs
Why are recalls and liability cases especially damaging?
They attract media attention and can irreparably harm a business.
