3.3 The concept of quality

• What is quality in the context of business operations?

  Standard or excellence
• Why is maintaining quality essential for a business?

  Customer loyalty
• Match the quality standard with its focus:

  ISO 9001 ↔️ Process management

  Six Sigma ↔️ Defect reduction

  HACCP ↔️ Food safety hazards
• Six Sigma uses a data-driven approach to eliminate defects and improve quality.

  True
• ISO 9000 is an international standard that specifies requirements for a quality management system
• Steps in analyzing the costs of quality

  1️⃣ Identify prevention costs

  2️⃣ Calculate appraisal costs

  3️⃣ Determine internal failure costs

  4️⃣ Assess external failure costs
• Quality refers to the standard or excellence of a product or service
• High-quality products and services can help a business differentiate itself, build customer loyalty, and charge premium prices
• Match the quality dimension with its description:

  Conformance to specification ↔️ Meets design and performance requirements

  Fitness for purpose ↔️ Meets customer needs and expectations

  Reliability ↔️ Consistency and dependability over time
• Quality standards are formal specifications that define acceptable levels of quality
• Quality control and quality assurance are two techniques for ensuring high standards
• Match the quality technique with its focus:

  Quality control ↔️ Detecting and correcting defects

  Quality assurance ↔️ Preventing quality issues
• Match the cost or benefit with its description:

  Customer satisfaction ↔️ Increased loyalty and positive word-of-mouth

  Operational efficiency ↔️ Streamlined processes and reduced errors

  Prevention costs ↔️ Expenses to prevent quality problems

  Appraisal costs ↔️ Costs for inspecting and testing
• Businesses must balance the investment in quality initiatives against the potential benefits to ensure a return on their efforts.


  True
• Reliability refers to the consistency and dependability of a product or service.


  True
• ISO 9001 focuses on process management and continuous improvement.


  True
• ISO 9000 is an international standard that specifies requirements for a quality management system
• What does quality control involve during production?

  Inspections and testing
• By adhering to recognized quality standards, businesses can differentiate themselves in the market.


  True
• What are prevention costs incurred to prevent?

  Quality problems
• What does fitness for purpose focus on in quality dimensions?

  Customer satisfaction
• The three key dimensions of quality are conformance to specification, fitness for purpose, and reliability
• Fitness for purpose focuses on customer satisfaction.


  True
• Adhering to quality standards can help businesses differentiate themselves in the market.


  True
• Quality assurance emphasizes preventing defects through process improvements and systematic procedures
• Analyzing the benefits and costs of quality helps businesses manage their quality programs
• Internal failure costs include expenses from quality issues discovered before the product reaches the customer
• Conformance to specification refers to the degree to which a product or service meets its design and performance requirements
• Fitness for purpose focuses on how well the product or service meets the needs and expectations of the customer
• What is one benefit of implementing quality standards?

  Enhanced reputation
• What is Total Quality Management (TQM) focused on?

  Customer requirements
• What approach does Six Sigma use to improve quality?

  Data-driven
• High-quality products and services lead to greater customer satisfaction.


  True
• Fitness for purpose refers to how well a product meets customer expectations.


  True
• Maintaining quality is essential for a business to remain competitive and successful.


  True
• Conformance to specification ensures a product or service meets its design and performance requirements
• Match the quality standard with its description:

  ISO 9000 ↔️ Requirements for a quality management system

  Six Sigma ↔️ Eliminates defects using data-driven approach

  TQM ↔️ Continuously improves all business aspects
• Quality control focuses on detecting defects after production through inspections and testing.

  True
• Both quality control and quality assurance are crucial for maintaining quality and meeting customer expectations.

  True
• A strong brand reputation for quality can help a business charge premium prices.


  True