Quality Management

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How does poor quality impact on quality management?

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1

How does poor quality impact on quality management?

It is a reason for competitive disadvantage

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2

What are the examples of poor quality?

  • Product fails- e.g. a breakdown or unexpected wear and tear

  • The product does not perform as promised

  • The product is delivered late

  • Poor instructions/directions for use

  • Unresponsive customer service

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3

What is the cost of poor quality?

  • Cost of reworking or remaking products

  • Costs of replacements or refunds

  • Wasted materials

  • Lost customers (expensive to replace- and they may tell others about their bad experience)

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4

How does poor quality damage competitiveness?

  • Financial costs (e.g. compensation)

  • Lost customer loyalty

  • Damaged business reputation

  • Need for greater controls and checks

  • Competitors take advantage

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