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17 Achieving quality production
Introduction
How do businesses keep the customers they have and also attract new customers?
Objectives The answer lies mainly in the quality of the products they produce and sell.
Businesses that provide poor quality products or poor customer service may quickly
In this chapter you will lose customers and eventually close down.
learn about:
In this chapter you will learn the meaning and importance of quality and understand
■ why quality is important to how businesses can achieve quality production. You will look at quality control and
businesses quality assurance.
■ quality control
■ quality assurance.
Why quality is important
What quality means
When we talk about a ‘quality product’ we do not mean that it is the best possible
product, which has been made by the most advanced production methods using the
highest quality raw materials. It also does not mean that the most expensive product
is always the best.
KEY TERMS Instead, we need to think of ‘quality’ as ‘free from defects’. When you buy a
product you want it to work in the way that you expect. For example, if you buy a
Quality: ensuring a good or calculator you expect it to work out calculations correctly. In other words, a quality
service that meets the needs and 229
product is one that meets the needs and requirements of the consumer.
requirements of its consumer.
Businesses usually find out about the needs and requirements of consumers
Quality standards: the
through market research. Once they know what these needs are the business can
minimum acceptable standard of
production or service acceptable set the quality standards that are expected by consumers.
to consumers. Quality standards can be divided into design standards and process standards.
Design standards help a business create the best possible product, which consumers
find more valuable than other products in the market. Process quality standards
help a business to produce its goods and services at the lowest cost. Combining
design standards and process standards helps a business gain a competitive
advantage and gain market share.
The importance of quality to all businesses
Quality is important to businesses because it helps them to:
Market research: see
Chapter 11, page 153.
■ 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. For example, Sony has an
excellent reputation for producing high
quality personal entertainment products. If
they introduce a new product into the market,
it will attract customers quickly. Customers
will even be prepared to pay a premium price
because they know the product will be of
high quality. A quality inspector at work
