Concept of Quality

• quality control:


  the process of inspecting products and services to ensure that what customers receive is of a high standard
• conduction of quality control:

  -feedback at point of sale/post sale from customers

  -factory inspectors

  -reduce the number of faulty/sub-standard products

  -only identify faults at end of production (waste)
• quality assurance:

  a process of carrying out quality checks at specific stages during the production process
• conduction of quality assurance:

  -improving production process

  -establishes a system of quality management

  -needs good business culture (employee attitudes)

  -responsibility of everyone in the production process

  -expensive to train employees/hire quality managers
• total quality management: (TQM)

  a philosophy that involves everyone in the business in the quest for continual improvement in the attitudes, practices, structures and systems that combine to create a top-quality product
• TQM advantages:

  -cost reduction

  -increased efficiency

  -increased customer satisfaction

  -reduced waste/errors
• TQM disadvantages:

  -cost of training

  -difficult/time-consuming to introduce

  -all employees must be passionate
• costs/benefits of maintaining quality:

  -high quality + low costs = competitive advantage

  -good quality ~ strong brand image ~ grow market share ~ charge premium price ~ low return rates/complaints

  -mistakes are expensive

  -inspection and staff training costs, product recalls and the provision of additional services (helplines)
• quality issues with growth:

  -large business = increased difficulty to manage quality = cut back on quality procedures

  -franchises must have rigorous policies, training programmes and regular inspections

  -outsourcing to low quality businesses ~ late deliveries + unsatisfactory products
• outsourcing:

  an agreement where one business agrees to produce goods and provide services on behalf of another business