Should Businesses Invest in Quality? (17.1)

Chapter 17 - Achieving Quality Production

Lesson Objective: To understand the importance of quality for businesses

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In your opinion, what is a quality product?

• The most reliable?

• The best performing?

• The longer lasting?

Quality is a relative concept which depends on variables such as:

• Price;

• Customers' expectations;

• Customers' satisfaction.

Quality, therefore, is about being defect-free and meeting customers' expectations.

The concept of Quality Standard comes after understanding customers' expectations:

• Quality Standards are documents that provide requirements, specifications, guidelines, or characteristics that can be used consistently to ensure that materials, products, processes, and services are fit for their purpose.

Quality Standard is usually divided into two:

• Design Standard: which has to do with building the best possible product given customers requirements;

• Process Standard, which is about producing those products at the lowest cost.

There many advantages from offering quality products and services:

• Cost saving from complaints, compensations, replacements;

• Longer product life-cycles - savings on costs of development;

• Potential higher profitability due to the ability of charging premium;

• A Strong brand image makes it easier for businesses to introduce new products;

• High quality makes it easier to retain and attract customers increasing the odds of long-term success;

• Wholesalers and retailers willingness to stock up quality high-selling products.

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To-Do-List

Exam Practice Questions:

• 1a

• 1b

• 2a

• 2b

• 2c

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Chapter 17 - Achieving Quality Production