Introduction

Quality like many other aspects within business is one of great significance that is
often miss-interpreted or understood. A useful explanation is, “quality means
conformance to requirement” (understanding total quality management, p6) and
therefore can be further broken down to suggest, that it is the means of meeting the
needs and expectations of those involved, for example consumers and employees. It
is also important to understand that the concept of quality requires a great deal of
management. This is because without management quality will not be taken in to
consideration and therefore will no longer exist. In order for this process of
management to be actioned it is important to understand that “it must involve
everyone in the process and be applied throughout” (total quality management, p.4)
in terms of an organisation structure.

It is also important to note that this concept of quality is one that is of standard
expectation within today’s society. Its importance and application should therefore
not be underestimated, because without it, a business is likely to fail to satisfy its
consumers and will most likely result in future success being sacrificed.

Apple’s supply of a product

Company

It is profoundly obvious that Apple as a company employs an individual perspective

of what quality means throughout its organisation. This therefore allows them to
best achieve what they consider to be a high quality product. After in depth analysis
of Apple it is apparent that quality is one aspect of their business that is continuously
reviewed, a positive example of this in their sequential product development and
series release, with their entire product range. This shows their determined focus
and persistent adaption to quality as it represents their commitment to meeting
their consumers’ requirements in order to supply the best quality product they see
possible. This analysis therefore denotes Apples view of a high quality product as
being greatly developed, most technologically advanced and innovative within its
market. This unique and personalised view of quality has provided an extremely
successful outcome for Apple and therefore shows that their perceived belief of
quality is one of high accuracy.

Although the above statements support Apple in its understanding and meaning of
quality, alongside, how it should be applied. It is a view that is that is relatively
lacking in other aspects of quality. An example, of this is that it can be criticised in
the view that a good quality product is to be priced higher, demonstrated by the cost
of their goods. This is a criticism because as the earlier definition suggests, quality is
measurable by customer satisfaction and requirements, not by price.

Customers

Apple’s target customer base, shares a similarly structured understanding of what

quality is. It can be stated that to them quality means, a product is well-produced,
highly technologically advanced and user friendly, that can be rely upon for a
satisfactory period of time (usually three years in the technology market). Analysis of
this, suggests that it means this to them because all of these aspects exist within
their requirements as a customer and therefore these satisfy their needs, resulting in
them seeing the product as one of high quality.

Direct line’s supply of a service

Company

Direct Lines market place is within the area of insurance, and is one of immense
competition that therefore requires an in depth, clear vision of what quality means.
It is therefore essential that they understand what their customers require in terms
of the service provided. As a company it is evident that quality means providing a
superior service that cannot be beaten in terms of customer protection, service and
satisfaction all at a competitive charge. An example of this a quote retrieved from
their online website “looking for cheap care insurance, home insurance or travel
insurance? – get a good deal better from Direct Line” (www.DirectLine.co.uk). This is
evidence that supports their confidence within the quality service they provide as
well as a means of stating that they offer better quality that a competitor.

Although direct line have this positive, determined focus of what quality is, and
when they enforce it effectively they can be considered vastly superior is it
disappointing to state that they have suffered some problems and a lack of quality in
some of their application. This has resulted in aspects of their customer needs not
being meeting and therefore Direct Lines positive image has been reduced. An
effective example of this is some of their telesales being unproductive and causing
customer dissatisfaction, represented with complaints and a reduction in return
sales.

Customer

In relation to what quality means to the customer of Direct Line it can be

summarised that the general opinion is one that is related to a positive, well applied,
customer friendly service that covers all that is required by the customer in terms of
insurance at a perceived reasonable price. Alongside this the customers greatly
expect to be communicated to with a positive attitude, an aspect that is dominant
within quality when related to service providers. This aspect can be argued as one of
most importance in relation to competition and buyer influence.

What is likely to be the commercial rationale for such

approaches?

Apple

There are various rationales for Apples approach to quality, there first and arguably
most significant is to aid the development and construction of the company’s brand.
This process aids this because it allows them to satisfy its customers’ requirements
effectively and therefore enables a positive outlook of the company and therefore is
likely to increase sales in the long run as the company will have a high quality image.
An example of Apples application of this process is their continuous improvement of
their iPhone allowing for new elements of customer requirements and expectations
to be utilised and satisfies, which as stated previously demonstrates the brand as
good quality.

A second rationale for this approach is to enable Apple to differentiate their

products, this being a key competitive aspect in terms of quality within their highly
competitive market. A good example of this is their newly released iPad,
representing a completely new innovation of that notebook, in conjunction with the
constant rapid developments within the technology market. This helps improve
quality as it shows Apple’s customers that they are always trying to improve the
products and quality they supply to the market.

To conclude, Apple applies this approach and meaning of quality to its organisation
because it is effective in aiding their product differentiation within a highly
competitive market. Supported by the further rationale, of it being a means of
improving their continuously growing, well established brand name and image.
Theses aspects alongside numerous others have allowed Apple to be identified as a
high quality brand that produces high quality products allowing them to dominate
their market by meeting the needs of their customers.

Direct Line

As with Apple, Direct Line have several commercial rationale when considering why
they apply these quality meanings and views. An initial reason is simply because if
they enable good quality service the first time it is likely to reduce mistakes and
problems in the future. This is then far more likely to result in a reduction in cost, in
terms of monetary value and brand image. This is good because it will help build
brand reputation as well as ensure customer satisfaction, increasing the potential for
repeat sales.

A supporting rationale is within the previously mentioned brand building. This is

because if the company is recognised as giving good, highly satisfying service then it
is likely that the brand image and reputation will increase drastically making the
company potentially more profitable and aiding there future developments in their
understanding of quality. A good example that recognises this success is their own
statements of success such as the following “We’ve been bringing you great deals
and coming to the rescue for 25 years” (www.directline.co.uk). This shows that they
have achieved continuously successful outcomes and have allowed their view of
quality to lead them to a successful business.

To conclude, Direct line like Apple have various rationale for their approach to
quality consisting of allowing it to aid their brand building and reduce potentially
high costs through the process of supplying a high quality service from the start.
These aspects as with Apples have allowed them to stand out within their market
segments leading them to success.

If one or both of these companies had adopted a Total Quality

Management approach to managing their business, what philosophies
and processes would we expect to see in place?

Total Quality Management (TQM) requires vast amounts of planning and attention in
order to be completed successfully and can be defines as “a systematic way of
guaranteeing that all activities within an organisation happen exactly as they have
been planned in order to meet the defined needs of customers” (Week 2 p.8).
Within TQM there are various philosophies and processes that have been
established as a result of its development and growth throughout its existence. A
process can be defined as “the transformation of a set of inputs, which can include
actions, methods and operations, into outputs that satisfy customer needs and
expectations, in the form of products, information, services or –generally- results.”
(Total quality management test with cases, p.12). This therefore shows the
importance of applying the most appropriate process within an organisation in order
to achieve high quality as it takes in to consideration what quality actually is.

A key process of quality management that you expect to see within both of these
organisations is ‘The quality chain’. This is because it continuously assesses quality
and its effect on consumers (i.e. how satisfied they are) allowing the business to
make alterations in order to maximise its quality value. (Total Quality Management
text with cases, p.7) The reasoning as to why this process is expected to be seen is
because both of these companies observe what the consumer requires and adapts
their product or service in order to supply their markets with the highest quality they
see possible. A good example of this process in effect is, a new series of iPod being
released after a period of time, of which contains numerous updates and new
features that will please the new or potential customer requirements.

Apple

As previously stated there are various philosophies that have been established
within TQM, although there is one specific theory that could be seen within Apple in
relation to the way in which Apple address TQM. This is Deming’s theory of which he
believed that “quality should be aimed at the need of the consumer, present and
future” (Total Quality Management text with cases, p.5). Following this belief he
developed four methods of quality management and movement: the PDCA cycle,
statistical process control, 14 principles for transformation and the 7 point action
plan. The most significant within these methods in relation to how Apple develop
their product range as well as their TQM, is the PDCA cycle (Plan, Do, Check, Act) as
it is felt that this approach is one of vast similarity when compared with the way in
which they apply ‘the quality chain’ to their operations as an organisation. A good
example of this is their sequential release of iPods as stated previously with new and
improved features, all of which ready to prove and enhance Apples quality outlook.

Direct Line

As with Apple, there is one specific theory that could be seen within their
methodology in addressing TQM throughout their organisation. This is Crosby’s five
absolutes of quality management, created alongside his believe that quality is
“conformance to requirements” (Total Quality Management text with cases, p.5).
This theory can be seen within Direct Lines organisation because the five absolutes
that are present within this theory contain similar ideas and suggestions about
quality management as they enforce. A good example of this is ‘right first time’
whereby it suggests that if attention to quality is ensure from the start it is more
likely that a successful quality level will be achieved and losses will be reduced and
the brand will be perceived as a better quality. Another aspect of similarity is
‘conformance to standards’ this suggests the standards of which the customer
expects and therefore will determine the level of quality. If these standards are met
then quality will again be perceived as a higher quality and so will the brand. An
example of this being present within Direct Line is the high level of insurance cover
provided alongside a professional customer service team conforming to the
expected standard of the consumer.

To conclude

Throughout this critical evaluation, an analysis in to what the company and

customers of both Apple and Direct Line understand to be the meaning of quality
has been carried out. It has been established that quality to Apple is reflected upon
innovation, technological advancements, construction quality alongside a centred
need to satisfy the customers’ requirements. In comparison to Direct Line providing
a service whereby they understand quality to mean providing a superior service that
cannot be beaten in terms of customer protection, service and satisfaction all at a
competitive charge. After analysis of these two approaches it has become apparent
that there are various understandings of what quality means, but it is also important
to observe that essential both successful companies understand that quality is about
tending to the customers’ needs and requirements.

It has also been established that there are differing commercial rationale for
businesses providing a product and service and this therefore provides an
explanation as to two why these two companies’ enforce different approaches to
quality management. Rationale for product providing companies is vastly complex
but it has been stated that Apple amongst other reasons addresses quality in order
to aid their product differentiation as well as support the development of their
positive brand name and image. Whereas Direct Line are focused on quality in order
to ensure they offer a good service first time resulting in a reduction in mistakes and
therefore minimising a negative impact on their brand image and cost. This analysis
has allowed for a similarity to become apparent in terms of both product and service
providers seeing brand image as a key reason for quality management.
Finally this critical analysis examined both companies and recognised potentially
adopted TQM processes and theories. It was seen that Apple could have adopted
Deming’s four methods of quality management and movement with stronger focus
on his PDCA cycle in terms of product development and quality improvement. It was
also noted that Direct Line could be seen to have adapted their quality management
strategy around Crosby’s five absolutes of quality management this is because he
states the need to get it right first time and the conformance to standards both of
which supply dramatic focus within Direct Lines operations.