product-quality-as-economic-aspect

WHAT IS PRODUCT QUALITY?

Product quality is a very basic wording used very commonly.It is defining itself already , quality of the product but we wanted to investigate more deeply this basic terminology.Please reas below article for this deep investigation and surely will be helpful to refresh your minds.

Competition Between Organizationscompetition-between-organzitions-for-quality

As very well known that business organizations struggle for superiority in the market.There is a lot of and to death competition caused by existence of many organizations specializing in similar lines of production and targeting common customers.

The competitive ability of an organization determines its growth rate and ability to emerge superior to others in the market. This competitive ability depends on the quality of the product offered by an organization; customers are after high quality products.

Retaining a large number of customers is the only way an organization can emerge superior in a competitive market. Therefore, product quality is the product’s ability to meet the expectations or requirements of customers.

Product Quality as Economic Aspect

product-quality-as-economic-aspectProduct quality is an economic aspect applicable when analyzing other concepts like price variation, advertisement, cost estimation, profitability and market share. These business parameters highly depend on product quality. A product can be of good or poor quality. It depends on the whole manufacturing process. The difference between good and poor quality emerges from design, production, materials used, product handling, services involved, delivery to customers and the efficiency of an organization’s quality management team. Good quality starts with the requirements specifications before actual design. The requirements are specified with a goal of addressing customer problems; therefore poor requirement specification leads to poor product quality.

Results of Product Quality

Both good and poor quality have results in a business. Poor quality leads to increased liabilities, business closure, low productivity and increase in cost of production. Good quality leads to good customer relationship, high profitability and business growth. However, good quality has its own costs. They include appraisal, failure and prevention costs. Organizations seek to reduce the cost of good quality in production, but this remains a common challenge. The best strategy is identifying the limiting issues and addressing them before they affect the manufacturing process.

Key of Success in Quality Managementkey-to-success-in-quality-management
To succeed in quality management, managers need insightful ideas about the good quality aspects. Such aspects include definition of operational quality, recognizing the advantages and costs of good quality, understanding the effects of poor quality and recognizing the importance of ethics. In addition, customer expectations can be met by understanding their quality judgment dimensions