Quality Management

• The business definition of quality is delivering a product or service that meets or exceeds customer expectations
• High quality can lead to more repeat business and new customers
• Higher quality can result in a higher selling price and increased revenue
• Quality can be a unique selling point for a business
• Improving quality can lead to cost savings in the long term
• Quality control systems monitor and check quality at the end of the production process
• Quality assurance systems make each staff member responsible for their own output and embed quality throughout the organization
• Total quality management is a Japanese philosophy that focuses on building quality assurance into every part of the organizational culture
• Quality circles involve teams of employees meeting to address issues and make improvements to quality systems
• Kaizen systems involve making small incremental changes for continuous improvement
• Quality management systems have benefits such as developing a competitive advantage and reducing costs, but they also come with implementation costs
• Balancing the benefits and costs is important when evaluating the usefulness of quality management systems

The module emphasizes the importance of achieving high levels of quality in business operations and discusses various quality management systems that can be implemented to achieve this goal. Quality is defined as delivering a product or service that meets or exceeds customer expectations. Improving quality can have a positive impact on sales volumes, as it leads to more repeat business and attracts new customers through positive word of mouth. It can also result in higher selling prices and create a unique selling point for the business. While increasing quality may initially raise costs, it can ultimately lead to cost savings by reducing customer complaints, product recalls, and waste. Different methods for improving quality, include quality control systems, quality assurance systems, total quality management, quality circles, and Kaizen systems. Each method has its benefits and drawbacks, such as the cost of implementing and maintaining the systems and potential resistance from staff. Overall, effective quality management systems can help businesses develop a competitive advantage, increase sales and revenue, and reduce costs.