Quality Control & Assurance (Cambridge (CIE) IGCSE Business)

Revision Note

Danielle Maguire

Written by: Danielle Maguire

Reviewed by: Steve Vorster

The Importance of Quality

  • Quality considers the characteristics and features of a product that satisfy the needs of customers

    • Businesses need to maintain a level of quality for several reasons

      • Attract and retain loyal customers

      • Build the reputation of the business or brand

      • Reduce wastage and returns from unsatisfied customers

  • The quality of a businesses products can provide a  competitive advantage  

    • High quality and minimal defects lowers business costs allowing lower selling prices to better compete with rivals

    • High 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 improve business reputation and ease expansion into new markets 

  • If quality is not maintained then businesses may be at risk of

    • Losing their competitive advantage and customers to other brands who offer better quality goods/services

    • Experiencing higher costs due to having to replace faulty or defected goods

    • Gaining a poor reputation as customers spread poor reviews about the business to others

  • Customer perceptions of quality are influenced by numerous factors

Diagram: factors that influence quality perception

The perception of quality is influenced by the brand, the product and the customer service
The perception of quality is influenced by the brand, the product and the customer service
  • Customers may consider products or services to be of good quality if they

    • Look good and are sold by a reputable business or brand

    • Are reliable and durable

    • Are safe and fit for purpose

    • Receive good customer service, including after-sales service

  • In some countries laws protect consumers so businesses need to ensure that the products it sells are free of faults or defects to avoid harming customers or their reputation

Examiner Tips and Tricks

‘Quality’ does not necessarily mean producing a high-priced, excellent product

How quality is defined depends upon the industry in which the business operates, the product and price. It will also be the subjective opinion of customers

For example, if you buy a low-priced remote controlled toy drone would you expect it to work as well as an expensive toy drone. The answer will probably be based on your expectations of quality and price, but you would want it to work and be free of faults

Quality Control

  • Quality control is a traditional method of checking quality at the end of the production process using quality inspectors to find faults

  • It is not possible to achieve perfection in every production process

    • E.g. There will always be some variation in terms of materials used, production skills applied, reliability of the finished product

Evaluating Quality Control

Benefits 

Drawbacks

  • Specialists in quality control check standards

  • Output is very likely to be fit for purpose before the customer receives it

  • Little staff training is needed as inspectors check quality rather than the employees themselves

  • Rejecting finished goods is a significant waste of resources

  • The cause of defects is ignored so problems may continue

  • High costs of scrapping or reworking products

Quality Assurance

  • Quality assurance involves employees checking quality standards throughout the production process

  • It aims to achieve quality by organising every process to get the product 'right first time' and prevent mistakes happening

    • There is an emphasis on 'self-checking' rather than checking by inspectors at the end of the process

  • Total Quality Management (TQM) is a specific approach to quality assurance that aims to develop a quality culture throughout the firm

    • TQM is the continuous improvement of products and processes by focusing on quality at every stage of production

    • It tries to get it right first time and achieve ‘zero defects’

Evaluating Quality Assurance

Benefits 

Drawbacks

  • Quality issues are identified early, allowing reworking rather than rejection of substandard products

  • The cause of defects is identified so future quality issues are prevented

  • Fewer customer complaints maintain business reputation

  • Improved worker motivation as workers have more ownership and recognition for their work

  • Staff training and a skilled workforce are required, which  increases labour costs

  • Reworking may lengthen the time period of production

  • All workers must be fully committed to maintaining quality standards

  • Focus on quality may reduce labour output

Examiner Tips and Tricks

Ensure you understand the subtle but distinct difference between quality control and quality assurance. You may be asked to recommend an approach to quality and there are notably different advantages and disadvantages to each approach

Last updated:

You've read 0 of your 5 free revision notes this week

Sign up now. It’s free!

Join the 100,000+ Students that ❤️ Save My Exams

the (exam) results speak for themselves:

Did this page help you?

Danielle Maguire

Author: Danielle Maguire

Expertise: Business Content Creator

Danielle is an experienced Business and Economics teacher who has taught GCSE, A-Level, BTEC and IB for 15 years. Danielle's career has taken her from across various parts of the UK including Liverpool and Yorkshire, along with teaching at a renowned international school in Dubai for 3 years. Danielle loves to engage students with real life examples and creative resources which allow students to put topics in a context they understand.

Steve Vorster

Author: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.