Given the number of products available, the bargaining power of customers in this industry is very high. The two main drivers for customer’s preferences are quality and price, there is no service involved.
Given the highly competitive nature of today’s markets we as a company must provide high quality products to survive. Quality itself has become a major competitive factor and in many ways is a contributing factor in success or failure. The intent of this memo is to identify, explain and evaluate the three types of cost associated with quality.
Today’s consumers are constantly trying to judge the quality of products. But what is quality? How and by whom is quality determined? Some would say the designer creates specifications, which in turn dictate the quality of a product. That quality is also based on the acceptable value of a part within a whole product.
For Andrei Octavian PARASCHIVESCU and Florin Mihai CAPRIOARA, organizations that desire to implement a strategic quality management approach should consider both the strategic dimension of quality and the management strategy (2014, p 19). In fact, both writers stipulate ”Quality Management” aims to advance quality to meet patron’s requirements by controlling processes (Paraschivescu & Caprioara, 2014, p 21). Likewise, their ideas confirm that the production approach demands a strict input from workers. In doing so, quality improvement teams can measure and spot
Senior leadership must determine and direct the level of quality that is acceptable within the organization. Leadership should prioritize areas of quality and use data based on benchmarks from other facilities. (Dlugacz, 2006). In addition the author states there are some important areas that must be monitored for quality. Compliance must be followed by leaders and all
As employees of an organization we are required to ensure the welfare of the same at all times. Sometimes we see and analyze certain processes carried out and it is understood that there is any way in which these processes can be improved. It happens that we are not prepared to report that such changes are needed for reasons that are varied. There are positions in companies that are responsible for ensuring that all processes, products and services offered comply fully with the expectations of customers. The so-called "quality controls" are the order of the day in different industries thus minimizing the losses that come when we could make a claim for defective product or service. The following provides an example of
In order to make sales and have a successful running company you need to know how to market your products and or ideas to the group of people for whom it is intended. The quality of your product must also be top tier because marketing is only half of the battle. Before hearing Tripp Transou talk I was unsure about how important the quality of the product was. I was under the impression that marketing was number one because that what got people to buy it. However, he allows me to realize that if you want consumers to buy your product more than just once then you must ensure that the quality and consistency of your product is perfect. There must also be attention to detail in every aspect of your company from making sure the facilities are kept clean to the product being properly manufactured, stored, shipped and tested. This attention to detail will translate into more sales and having a more successful and efficiently run company than those who do not seem to care for their consumers. Tripp’s talk allowed me to see how much goes into running a successful business whether it is big or small. His journey of how he came to be the successful businessman he is today inspired me to never always have an open mind and never turn
Yasin and Alavi (1999) conducted a quantitative study to determine if Total Quality Management (TQM) can produce quality improvement
Quality of conformance includes technology, manpower and management while availability focuses on reliability, maintainability and logistics support. Juran emphasized that good service quality composed of promptness, competence and integrity. Like Deming, Juran advocated a never-ending spiral of activities that includes market research, product development, design, production process control and inspection and testing, followed by customer feedback. In his view, senior management may play an active and enthusiastic leadership role in the quality management process.
Producing a quality product, whether a tangible item or a service, is the goal of all organizations, how this goal is achieved will be the challenge. Quality of the end product has been an obstacle in America for decades. In the post World War II era as production of products in America rose, the quality of those products diminished. At the same time other countries such as Japan were not experiencing the same quality issues.
The system of quality is prevention: This is why management must take the concept of prevention very seriously because it reduces defects and it lowers cost. This absolute state that appraisal, checking and inspection is an expensive and unreliable way of getting quality. Prevention can be achieved if during production process opportunities for error are identified. Prevention can also be achieved using statistical quality control method. Crosby (1995).
Our company should make sure that manufacturers deliver products with the highest design specification, in order to be order-winner quality conformance, by delivering products with no defects (Hill and Hill, 2012). Furthermore, improvements in quality lead to a decrease in cost for the company. According to (Evans, 1997) higher quality products lead to a decrease in costs for the company through higher productivity: ‘improvements in quality leads to lower cost because of less re-work, fewer mistakes, fewer delays and snags’ (Evans 1997, P.55).
Even though Deming, Juran, and Crosby all have similarities between their key principles in quality management there are several aspects that are different to the approaches. They all recognize the importance of measurement to improve quality; however, the level of importance each emphasizes is different. Crosby and Juran view the cost of quality as the focus of measurement whereas Deming does not use the cost of quality as a focus (Suarez, 1992, p.18). To Deming, meeting the customers’ needs and expectations about a product or service is of higher importance to quality. He also considers unknown costs such as the impact of lost customers to be more significant than visible costs (Suarez, 1992, p.18).
Implementation of excellent quality comes with a cost. The company must decide if it is really worth compromising the quality for revenue. If the quality costs exceeds the expected revenue of the company then the company must abandon implementing quality control mechanism. If otherwise, the quality would contribute to the product value and hence the revenue.
Quality is never an accident it is always the results of high intention, sincere efforts, intelligent directions and skillful execution, it represents the wise choice of many alternatives.