Achieving quality production

Quality is ensuring a good or service that meets the needs and requirements of its consumers. Quality means free from defects. Business usually finds about the needs and requirements of consumers through market research. Once they know what these needs are the business can set the quality standards that are expected by the consumers.

Quality standard is the minimum acceptable standards of production or service acceptable to consumers. Quality standards can be divided into two. They are

1.     Design standards – it helps a business create the best possible products, which consumers find more valuable than other products in the market.

2.     Process standards – it helps a business to produce its goods and services at a lowest cost.

Combination of both quality standards helps a business to gain a competitive advance and market share.

 

The importance of quality to all businesses

Quality is important to businesses because it helps them to:

1.     Develop a strong brand image: building strong brand image based on quality makes it easier for a business to introduce new products to the market. Customers will know the reputation a business has for quality products and they will assume that any new product is of the same quality.

Example – Apple new products attract customers quickly. 

2.     Keep customers and attract new customers: this is known as customer loyalty. When a business has a reputation for producing quality products it is easier for them to keep their existing customers and attract new ones. Customers are likely to repeat purchase.

Example – MacDonald and Starbucks have customers who visit there every day.

3.     Reduce costs, customer complaints and returns: products that do not meet the needs and expectations of customers will be returned. The products will have to be replaced or the customers may want the money they paid for the item refunded. Returns from customers increase costs and reduce profits. Also increase in complaints returns could damage the reputation of the business.

4.     Charge premium price: many consumers are prepared to pay a higher price for a product that is seen as being better quality than similar products on the market. It leads to increase in revenue.

Example – apple charge a high price for their products.

5.      Encourage wholesalers and retailers to stock the product: most manufacturers need middlemen, such as wholesalers and retailers, to help them distribute their product to the final consumers. If a product is of good quality then both wholesalers and retailers will want to stock the item because they know that consumers will want to buy it. It will increase revenue and profits.

6.     Lengthen product lifecycle: products that are good quality will continue to meet the needs of customers. These products will have a longer lifecycle than poor quality products, which consumers will not continue to buy. If a product has a long-life cycle then it will stay in the most profitable maturity stage much longer.

 

How businesses achieve quality production

1. Quality control: Quality control is the checking the quality of goods and service through inspection.

o   Quality control department is responsible to take samples at regular intervals to check for errors. They would check that quality is being maintained during production of goods, try to eliminate errors before they occurred, and find defective products before they reach customers.

o   If errors and faults are found, the whole batch of production might have to be scrapped or reworked.

      Advantages of Quality Control:

o   Tries to eliminate faults and errors before the customers receives the product or service

o   Less training required for the workers

      Disadvantages of Quality Control:

o   Expensive as employees need to be paid to check the product or service

o   Identifies the fault but doesn't find why the fault has occurred and therefore is difficult to remove the problem

o   Increase wastage id resources – inspection take places at the end of the process.

o   The work can be repetitive and boring so may demotivate workers.

o   Increased costs if products have to be scrapped or reworked or services repeated

o   As there ate quality inspectors, workers do might not see quality as their responsibilities and might not try to maintain quality throughout production process.

 

2. Quality Assurance

Quality Assurance is the checking for the quality standards throughout the production process, whether it is the production of a product or service.

o   The business will make sure quality standards are set and then it will apply these standards throughout the business.

o   The purpose of Quality Assurance is to make sure that the customer is satisfied, with the aim of achieving greater sales, increased added value and increased profits.

o   Attention must be given to the design of product, components and raw materials used, delivery schedules, after-sales service and quality control procedure.

Advantages of Quality Assurance:

o   Tries to eliminate faults and errors before the customers receive the product or service.

o   It reduces faulty products - Fewer customer complaints.

o   Reduced costs if products do not have to be scrapped or reworked or service repeated.

o   Reduce wastage of resources – checking quality standards throughout the process means they will be able to find and stops completing a product that will later fail quality check.

o   Able to obtain industry award such as ISO 9000. – increase customers trusts in products.

Disadvantages of Quality Assurance:

o   Expensive to train employees to check the product or service

o   Relies on employees following instructions of standards set.

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