Approaches to Quality (SQA National 5 Business Management): Revision Note

Why is quality important?

• Quality considers the characteristics and features of a product that satisfy the needs of customers

  • Businesses need to maintain a level of quality for several reasons

    • Attract and retain loyal customers

    • Build the reputation of the business or brand

    • Reduce wastage and returns from unsatisfied customers

• The quality of a business's products can provide a  competitive advantage  

  • High quality and minimal defects lowers business costs, allowing lower selling prices to better compete with rivals

  • High quality can be used in promotional activity and provide a unique selling point for businesses in competitive markets

  • Successfully developing a USP for quality can improve business reputation and ease expansion into new markets 

• If quality is not maintained then businesses may be at risk of

  • Losing their competitive advantage and customers to other brands that offer better quality goods/services

  • Experiencing higher costs due to having to replace faulty or defected goods

  • Gaining a poor reputation as customers spread poor reviews about the business to others

Ways to ensure quality

• Keeping machinery and tools in good condition helps ensure that products are made correctly and safely

  • Regular maintenance reduces breakdowns and errors, meaning fewer faulty goods are produced

• Well-trained staff know how to do their jobs properly and spot problems early

  • Training improves the accuracy, consistency and confidence of workers

  • This helps reduces mistakes and waste during production

• High-quality inputs lead to high-quality finished products

  • If a business uses poor materials, even skilled workers cannot produce reliable goods

  • Using trusted suppliers and good materials helps maintain customer satisfaction and brand reputation

Quality control

• Quality control involves checking quality at the end of the production process using quality inspectors to find faults

• It is not possible to achieve perfection in every production process

  • EFor example, there will always be some variation in terms of materials used, production skills applied and reliability of the finished product

Evaluating the use of quality control

Quality assurance

• Quality assurance involves employees checking quality standards throughout the production process

  • It aims to achieve quality by organising every process to get the product 'right first time' and prevent mistakes happening

    • There is an emphasis on 'self-checking' rather than checking by inspectors at the end of the process

• Total quality management (TQM) is a specific approach to quality assurance that aims to develop a quality culture throughout the firm

  • TQM is the continuous improvement of products and processes by focusing on quality at every stage of production

  • It tries to get it right first time and achieve zero defects

Evaluating the use of quality assurance