What does quality mean?
Quality means a product or service is fit for purpose (it does its job) and meets customer expectations. A cheap pen can be good quality if it writes well for its price.
Quality has many parts: reliability, safety, design, durability (how long it lasts), and after-sales service. For services it includes speed, politeness and getting it right first time.
Why quality matters
- Repeat customers and good word of mouth.
- A firm can charge a higher price (a premium).
- Less waste, fewer returns and refunds.
- Fewer legal problems from unsafe goods.
Cost of poor quality
Scrap, rework (fixing), refunds, lost customers, bad online reviews and damage to the brand.
Quality control vs quality assurance
Quality control (QC): inspectors check finished goods (or samples) at the end and reject faulty ones. It finds faults after they are made.
- + Faulty goods rarely reach customers. Simple to run.
- − Waste is costly. Workers may stop caring ("the inspector will catch it"). Faults are not prevented.
Quality assurance (QA): a system that checks quality at every stage, from raw materials to delivery, so faults are prevented. Workers check their own work (self-checking).
- + Less waste, lower costs over time, workers feel responsible.
- − Needs training and time to set up.
TQM, kaizen and quality circles
Total quality management (TQM): quality is everyone's job, in every department, all the time. The aim is "zero defects" and "right first time". Every worker treats the next person in the chain as a customer.
Kaizen (a Japanese word meaning "change for the better"): many small, continuous improvements suggested by workers, instead of a few big changes.
Quality circles: small groups of workers meet regularly to find quality problems and suggest fixes.
Benefits: motivated staff, steady gains, fewer faults. Problems: training costs, takes time, staff may resist change, gains can be slow to show.
Benchmarking and quality standards
Benchmarking: comparing your products or processes with the best firms (the "benchmark") and copying good ideas. Hard part: rivals may not share data.
Quality standards are agreed rules for a quality system. ISO 9001 is an international standard: an outside body checks the firm's processes and gives a certificate. Many buyers only deal with certified suppliers. Other marks show a product is safe or tested (in India, for example, the BIS mark).
Customer service is part of quality too: training staff, quick replies, easy returns and feedback forms.
Try it
Make 10 paper aeroplanes. First, test only at the end: throw each one and count how many fly 3 m. Next round, check each fold as you make it (QA). Third round, ask a friend for one small improvement idea (kaizen). Compare the number of failures and the paper wasted each round. Then test the same ideas in free play.
Key formulas and definitions
- Quality: fit for purpose and meets customer expectations
- Quality control: inspect finished goods, reject faults
- Quality assurance: prevent faults with checks at every stage
- TQM: everyone responsible for quality; zero defects
- Kaizen: small continuous improvements
- Quality circle: worker group that solves quality problems
- Benchmarking: copy best practice of leading firms
- Defect rate = faulty units ÷ total units × 100
Worked examples
1. A bakery throws away 30 of 600 loaves after end checks. Find the defect rate.
30 ÷ 600 × 100 = 5%.
2. Classify: (a) checking a sample of bottles after filling; (b) testing flour as it arrives and training bakers to self-check.
(a) quality control (end inspection). (b) quality assurance (checks built into each stage).
3. A phone maker's return rate is 4%; the industry leader's is 1%. What could it do?
Benchmark the leader's processes, move to QA with self-checks, start quality circles to find the main causes of returns.
4. Give one benefit and one drawback of TQM for a hotel.
Benefit: every staff member cares about guest experience, so fewer complaints. Drawback: training all staff costs money and takes time.
Common mistakes
- Saying quality means "expensive" or "luxury". Quality means fit for purpose at its price.
- Mixing up QC and QA. QC finds faults at the end; QA prevents them at every stage.
- Thinking kaizen means one big change. It means many small, ongoing changes.
- Forgetting the costs of improving quality: training, inspection, time and possible staff resistance.