Quality Flashcards
Quality
Providing the customer with a product or service that meets their requirements on a consistent basis
Quality Control
Process of inspecting and testing products in order to reduce the number of rejects in the production, and the number of returns from customers
What are the 4 benefits of having a good quality product?
Minimises costs
Satisfied customers
Competitive advantage OR Higher prices
Attract and retaining staff
Why does good quality minimise costs?
Don’t have to rework products
Less time spent handling complaints
Less lost in legal action
Why is it good to satisfy customers?
Generates sales through repeat business
Generates new customers through word of mouth
How does it give AFL the competitive advantage?
Better quality wins customers from rivals, increasing sales
Why can AFL raise their prices?
Their products are superior to rivals, meaning they can increase the price and therefore the profit margin
Why does it make attracting and retaining staff easier?
Quality reputation attracts new staff, and makes old staff less likely to leave
(Decreases costs as they don’t have to recruit)
Total Quality Management
All employees meet or exceed customer expectations by delivering the best service
Advantages of TQM
Everyone helps eachother- feel valued
Decreases waste- decreasing costs
Staff have more responsibility, so are more motivated
Disadvantages of TQM
Training is expensive- increasing business costs in the short term
Some staff feel uncomfortable in telling others that their work is substandard
Managers may be reluctant to empower staff as they fele they will lose control
