CHAPTER 32

IMPROVING QUALITY
Definition
"Quality is about meeti
ng the needs and expect
ations of customers"
Key aspects of quality for the cu
stomer include:

Reliable –
Good
Good design – acceptable level
functionality – it Consistency
looks and style of breakdowns or
does the job well
failure

Durable – lasts as Good after sales

Value for money
long as it should service
Consequence of poor quality

-LOSS OF SALES -LOSS OF -MAY HAVE TO -MAY IMPACT ON -RETAILERS MAY

REPUTATUION PRICE-DISCOUNT OTHER PRODUCTS BE UNWILLING TO
IN RANGE STOCK GOODS
 -Customer loyalty – they return, make
repeat purchases and recommend the prod
uct or service to others.
Quality help -Strong brand reputation for quality
s determine -Retailers want to stock the product
a firm's suc -As the product is perceived to be bett
cess in a nu er value for money, it may command a pr
emium price and will become more price
mber of ways inelastic
: -Fewer returns and replacements lead to
reduced costs
-Attracting and retaining good staff
Methods of improving quality

-TOTAL - QUALITY -QUALITY -

QUALITY CONTROL ASSURANCE IMPROVEMENT
MANAGEMENT
Total quality management
Advantages:

-Puts customers at heart of production process

-Motivational since workers feel more involved and making decision

-Eliminate the cost of inspection

Disadvantage:

- require strong leadership

-May be expensive as it require extensive training among staff

-May become bureaucratic

Quality control
Advantages of quality control

With quality control, inspection is intended to prevent faulty products reaching the customer. This approach means having s
pecially trained inspectors, rather than every individual being responsible for his or her own work. Furthermore, it is tho
ught that inspectors may be better placed to find widespread problems across an organisation.

Disadvantages of quality control

A major problem is that individuals are not necessarily encouraged to take responsibility for the quality of their own work
.

Rejected product is expensive for a firm as it has incurred the full costs of production but cannot be sold as the manufact
urer does not want its name associated with substandard product. Some rejected product can be re-worked, but in many indust
ries it has to be scrapped – either way rejects incur more costs,

A quality control approach can be highly effective at preventing defective products from reaching the customer. However, if
defect levels are very high, the company's profitability will suffer unless steps are taken to tackle the root causes of th
e failures.
 Advantages of quality assurance include:

-Costs are reduced because there is less wastage and re-working

of faulty products as the product is checked at every stage

-It can help improve worker motivation as workers have more owne
rship and recognition for their work

Quality As
-It can help break down 'us and them' barriers between workers a
nd managers as it eliminates the feeling of being checked up on

surance
-With all staff responsible for quality, this can help the firm
gain marketing advantages arising from its consistent level of q
uality

Disadvantage:

-Time consuming

-Costs a lot of money to train staff

-Time consuming to train staf