2.4.4 Quality Management

• How is quality defined in a business context?

  Delivering a product or service that meets or exceeds customer expectations
• What trade-off do customers accept regarding product quality?

  A trade-off between the price they pay and the quality of the product or service
• Why is improving quality important for businesses?

  It can positively impact sales volumes and lead to more repeat business
• How does higher quality affect customer behavior?

  Higher quality leads to more repeat business and positive word of mouth
• What is the potential financial benefit of increasing product quality?

  It can lead to a higher selling price and increased revenue
• What is a unique selling point (USP) in relation to quality?

  A USP can be created around the quality of a product or service
• How can quality management systems help in reducing costs?

  By reducing customer complaints, product recalls, and waste from defective products
• What is the traditional method used to monitor quality in businesses?

  Quality control systems
• What is the main goal of quality control systems?

  To prevent customers from receiving substandard products
• What is a downside of using quality control teams?

  They can be costly and may not be the best use of resources
• What is the focus of quality assurance systems?

  Making each staff member responsible for their own output
• What is a potential downside of quality assurance systems?

  They may increase stress on individual employees due to added responsibility
• What is total quality management (TQM)?

  A Japanese philosophy of embedding quality assurance throughout the organizational culture
• How does TQM differ from quality assurance systems?

  TQM involves a more comprehensive cultural change towards quality
• What are quality circles?

  Teams of employees meeting to address issues and improve quality systems
• What is a potential downside of implementing quality circles?

  They may take staff away from their main job, impacting productivity
• What does kaizen mean?

  Continuous improvement
• How can kaizen systems benefit a business?

  By making small incremental changes that lead to substantial improvements over time
• What are the benefits of quality management systems for businesses?

  • Develop a unique selling point (USP)
  • Charge higher prices
  • Increase sales quantities
  • Reduce scrap and waste
  • Improve overall revenue
• How can quality management systems help a business develop a competitive advantage?

  By providing benefits that set them apart from rivals
• How does product quality relate to the product life cycle?

  A good quality product is likely to have a longer product life cycle
• What are some costs associated with improving quality management systems?

  Costs of higher quality materials and implementation of quality systems
• Why is it important to take staff along in the process of implementing TQM?

  To ensure they buy into the culture of quality and support the changes