Managing Quality (Edexcel GCSE Business)

• Quality considers the characteristics and features of a product that satisfy the needs of customers
  
• Businesses need to maintain a level of quality that continues to attract and retain customers
  
• There are a number of approaches to managing quality in the production process
  
  

Methods of Quality Control

Method	Explanation	Benefits	Drawbacks
Quality Control	Inspecting the quality of output at the end of the production process	Quality specialists are employed to check standards An inexpensive and simple way to check that output is fit for purpose	The rejection of finished goods is a significant waste of resources  There is little focus on the cause of defects
Quality Assurance	Inspecting the quality of production throughout the process	Quality issues are identified early so products may be reworked rather than rejected The cause of defects is the focus so future quality issues may be prevented Controlling quality throughout the production process can be expensive, but it could ultimately reduce costs because defects do not then have to be dealt with	Staff training and a skilled workforce is required so labour costs may be increased Reworking may lengthen the production process

• The quality of a businesses products can provide a competitive advantage
  
  
  • Unit costs are likely to be low if a business takes a preventative approach through the use of quality assurance
    • Low costs may allow a business to reduce its selling price to better compete with or undercut its rivals
      

• • Increased finance may be available to fund marketing activity to improve brand recognition and attract new customers 
    
    
  • High levels of 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 ease expansion into new markets as a result of the positive reputation it creates