Quality management

• Quality


  The characteristics and features of a product that satisfy the needs of customers
• Reasons businesses need to maintain quality

  • Attract and retain loyal customers
  • Build the reputation of the business or brand
  • Reduce wastage and returns from unsatisfied customers
• High quality and minimal defects

  Lowers business costs allowing lower selling prices to better compete with rivals
• High quality


  Can be used in promotional activity and provide a unique selling point for businesses in competitive markets
• Successfully developing a USP for quality

  Can improve business reputation and ease expansion into new markets
• If quality is not maintained

  • Businesses may lose their competitive advantage and customers to other brands who offer better quality goods/services
  • Businesses may experience higher costs due to having to replace faulty or defected goods
  • Businesses may gain a poor reputation as customers spread poor reviews about the business to others
• Quality perception


  Influenced by the brand, the product and the customer service
• Customers may consider products or services to be of good quality if they look good and are sold by a reputable business or brand, are reliable and durable, are safe and fit for purpose, and receive good customer service, including after-sales service
• In some countries laws protect consumers so businesses need to ensure that the products it sells are free of faults or defects to avoid harming customers or their reputation
• Quality does not necessarily mean producing a high-priced, excellent product
• How quality is defined depends upon the industry in which the business operates, the product and price, and the subjective opinion of customers
• Quality control


  A traditional method of checking quality at the end of the production process using quality inspectors to find faults
• It is not possible to achieve perfection in every production process due to variation in materials used, production skills applied, and reliability of the finished product
• Benefits of quality control

  • Specialists in quality control check standards
  • Output is very likely to be fit for purpose before the customer receives it
  • Little staff training is needed as inspectors check quality rather than the employees themselves
• Drawbacks of quality control

  • Rejecting finished goods is a significant waste of resources
  • The cause of defects is ignored so problems may continue
  • High costs of scrapping or reworking products
• Quality assurance


  Involves employees checking quality standards throughout the production process to achieve quality by organising every process to get the product right first time and prevent mistakes happening
• Total Quality Management (TQM)


  A specific approach to quality assurance that aims to develop a quality culture throughout the firm, continuously improve products and processes by focusing on quality at each and every stage of production, and achieve zero defects
• Benefits of quality assurance

  • Quality issues are identified early allowing reworking rather than rejection of substandard products
  • The cause of defects is identified so future quality issues are prevented
  • Fewer customer complaints maintain business reputation
  • Improved worker motivation as workers have more ownership and recognition for their work
• Drawbacks of quality assurance

  • Staff training and a skilled workforce is required which increases labour costs
  • Reworking may lengthen the time period of production
  • All workers must be fully committed to maintaining quality standards
  • Focus on quality may reduce labour output