quality management

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  • Created by: Hetal M
  • Created on: 01-05-17 18:51
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  • Quality management
    • what is quality
      • meeting the needs and expectations of customers
      • good design
      • good functionality
      • reliable
      • consistency
      • durable
      • value for money
        • customer has to satisfied that the price reflects the quality
    • importance of quality
      • customer loyalty -  make repeat purchases and recommend products to others
      • strong brand reputation for quality
      • retailers and distributors will want to stock it
      • better value for money = more price inelastic = will be bought even when price changes
      • fewer returns = fewer costs
    • costs of poor quality
      • product fails - wear and tear, unexpected breakdown
      • doesn't perform as promised - not doing as its meant to
      • product delivered late
      • poor instructions making the use of a product difficult
      • unresponsive customer service
      • poor quality = additional costs
        • loss of customers
        • replacement and refund costs
        • wasted materials
    • benefits of improved quality
      • improved image and reputation
      • higher demand = greater production = lower unit costs
      • fewer complaints
      • higher selling price = higher profits
      • key to competitivness
        • similar price but better quality = likely win
        • used as differentiation of products
    • measuring quality
      • tangible
        • reliability
        • function and features
        • standards
        • costs of ownership - e.g. repairs
        • can be changed for its quality and looks
      • intangible
        • brand image
        • exclusivness
        • market reputation
        • something that cant be changed
    • quality control
      • process of checking products to make sure they meet the required quality standards
      • main objective = reach the standard for themselves - within the business standards
      • SPC - statistical process control
        • continuous monitoring of the process while its operating
      • prevents faulty products reaching customers
      • one professional examining it all
      • individuals not taking reponsibilty
      • rejected product = expensive = materials wasted
      • high defect levels = profitability suffers - need to find source of problem
    • quality assurance
      • process of making sure the product reaches the customers standards
      • right first time approach (aka zero defect) = prevent mistakes ever happening
      • self checking = workers
      • costs reduced = less wastage
      • improve workers motivation = gain recognition
    • TQM = total quality management
      • aiming to develop quality culture throughout the firm
      • quality chains = right first time approach

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