Improving quality

32.1 The importance of quality 

Although hard to define, there is no doubt that customers are very aware of quality. Their perception of quality is an important part of the buying decision.

Customers will accept some trade-offs between price and quality. There is, however, a minimum level of quality that is acceptable. The customer wants the product to work, regardless of the price. If the customers think that quality is below a minimum level they will not buy. Above the minimul level of acceptable quality, customers will expect to get more as they pay more.

The importance of quality is related to the level of competitiveness in the market. When competition is fierce, the quality of the product can tip the balance in the customer's decision-making. Yet the consumers' perception of quality can change.

For al customers, quality is about satisfying their expectations. The customer will take into account the total buying experience. Customer service and after-sales service may be important as the product itself. The way the product is sold, all contribute to the customers' feelings about the quality of the product.

Quality is a moving target. A quality standard that is acceptable today may not be in the future. Customer expectations of quality are constantly changing. As quality improves, customer demands also increase.

Quality:

• is satisfying customer expectations
• applies to services as well as products
• involves the whole business process, not just the manufacturing of the product
• is an ever-rising target.

32.2 The consequences of poor quality 

Where the consumer has choice, quality is vital. A reputation for good quality brings marketing advantages. A good quality product will:

• generate a high level of repeat purchase, and therefore a longer product life cycle
• allow brand building and cross marketing
• allow a price premium (quality adds value and additional profit)
• make products easier to place (retailers are more likely to stock products with a good reputation).

32.3 Methods of improving quality 

As the importance of quality for both marketing and cost control has been recognised, there has been a growth in initiatives to control and improve quality. Techniques for quality control, such as inspection and statistical control, etc. They have been supplemented by other policies aimed at controlling and improving quality. These include TQM, quality control and quality assurance. 

TQM:

• TQM is not a management tool; it's a philosophy. It is a way of looking at quality issues. It requires commitment from the whole organisation, not just the quality control department. The business considers quality in every part of the business process - from design to sales. TQM is about building-in rather than inspecting-out. For it to be successful, it should be woven into the organisational culture. 

Pros of TQM:

• Should become deeply rooted in the company culture
• Once all staff think about quality, it should show through from design to manufacture and after-sales service.

Cons of TQM:

• Especially at first, staff sceptical of…