What Is Quality in a Business?

A business is a system of moving parts that all work together to earn a profit. The main part of a business is the quality product or service that business sells to its customers. Quality can have many meanings in a business, and it is important to the function and success of the business. In this article, we will explain why quality is important, types of quality and how to improve quality.

Why is quality important?

Quality is vital to the success of a business. If a business can create and distribute high-quality goods and services, then it is more likely to be a successful enterprise. Here are some benefits of consistent quality:

• Increase customer loyalty

• Build a reputation

• Lead the industry

• Manage costs

Increase customer loyalty

Quality is the foundation of a business and is the key to keeping customers satisfied. If a business’ product meets and exceeds the customer’s expectations, then it is highly likely that the customer will continue to purchase that product. Engaging the customer, asking for feedback and improving functions can help maintain a quality product and increase loyalty.

Build a reputation

Good quality products will achieve positive reviews from customers. In today’s technologically advanced world, social media reviews can help boost a business’ traffic and orders. A business that has a strong reputation for high-quality goods and services may generate more revenue and customer traffic than a business with a negative reputation.

Lead the industry

Businesses with the best quality items become industry leaders and set the standard for other businesses in the market to follow. If a business can continue to create high-quality products and upgrade and adapt the products to meet customer demand, then that business can lead the way for others in the industry.

Manage costs

Companies track all profits and costs related to producing a product. Good quality products and services should be able to lower production costs and increase profit margins. As repeat sales and customer loyalty increases because of quality, a business’ profit should rise. 

Types of quality

Types of quality vary by point of view, so one business or industry may have a different outlook on quality than another. For example, a manufacturer’s interpretation of quality may differ from a marketing team’s definition of quality.

Some ways to define quality in a business include:

• Usefulness

• Requirements

• Value

• Cost

Usefulness

This quality states that the product or service is beneficial and practical for the customer. Therefore, a quality product is one that proves useful consistently. Products of good quality that are reliable and efficient are appealing, as customers can feel comfortable using the product or service repeatedly. 

Requirements 

Quality means that the products meet and exceed all requirements, standards and specifications. For example, certain industry products may need to meet specific standards and specifications for legal or medical reasons. Many companies also develop their own set of quality requirements that each product or service must meet before releasing it to the public.

Price

With this definition, quality is determined by how much customers will pay for the product. The higher the amount customers will pay, the higher the quality of the product.

Value

Quality products have a high value to the customer for their price. Companies may sell a product at a higher price if they have a product that’s better than their competitors’ offerings. For example, people may be more likely to purchase a cellphone that has a long battery life, even if it’s more expensive than a competing company’s cellphone with a shorter battery life.

Cost

This interpretation states that quality products cost more to make and distribute. Many products that last longer or excel in serving their function consist of high-quality material. Extensive planning and developing by experts ensures a better product, typically at a higher cost. 

Related: Workplace Continuous Improvement Plan: Definition, Techniques and Examples

How to improve quality

If you’re part of a team tasked with improving the quality of a product or service, you could try following these steps:

1. Commit

2. Identify and correct issues

3. Invest

4. Organize and assess

5. Meet and discuss

1. Commit

The first step to improving quality is a commitment from all employees. Businesses can improve quality by committing to making quality a top priority at all levels in the workplace. To encourage commitment from team members, it’s helpful to use motivational techniques that show how the outcome of their work affects customers. 

Related: The Best Ways to Motivate Your Team

2. Identify and correct issues

In a business, quality issues need to be identified and corrected as soon as possible to avoid added expenses. Businesses should keep a record of issues and corrections to avoid making similar mistakes. It can also help a business examine its processes and focus on improving those areas. It may be useful to create charts and graphs of the issues and share them with employees so everyone can see which areas need improvement.

3. Invest

If a business wants to improve quality, it should start with offering its employees a thorough training program. Training teaches employees to perform tasks in precise and efficient ways to create a high-quality product. In training, managers can discuss their own definitions of quality and ways of achieving it. Training can also provide employees with new techniques and strategies so that the processes and procedures of the business remain up to date.

4. Organize and assess

With organization and planning, employees can form groups and discuss new ways of improving quality. A thorough assessment of the business may identify processes that teams could improve to increase efficiency or reduce cost. By assessing every area of the business, these groups are able to analyze the strengths and weaknesses of the business.

5. Meet and discuss

Businesses should be open and honest about its commitment to quality and the expectations it has for its employees. Therefore, it is important that managers meet frequently with team members to discuss quality and ways the business can improve quality. Accepting feedback from team members can help managers try new processes that could help the company create a quality product or service.