Quality

Chapter Review : Ashwin Data systems

Q1: ADS ensure quality in its business because they are monitoring processes to ensure they are
producing quality products,

Q2: The importance of quality has become more significant. This is because consumer are more aware
because they have information given through the internet. This mean the expectation of the consumer
is higher than ever

Additionally, since there is so much competition the best way ADS keep their competitive edge is to
keep increasing the quality of their products.

Q3: A benefit is that sales will increase. This is because as you geta big award like that customer will
realize that ADS product has the highest quality products. This will allow the ADS to have a competitive
edge.

Another benefits of winning the award will be that the brand reputation for quality will significantly
increase, this means that customer will be willing to pay higher prices for the product as customer
usually pay higher prices for better quality

Q4: Total quality management is designed to prevent errors, such as poor quality products from ever
happening

Benefits of ADS introducing TQM are that it helps a business become more focused on the customer
needs this will mean that customer are more likely going to buy ADS products as a company that focus
on the customer need will have an increasing number of loyal fans, which keep buying their products
thus meaning higher revenue.

However, AS must also see that TQM is very costly meaning there will be a very large opportunity cost
incurred because of training costs and organizing costs. This will lower the business finances however if
the quality of the products are higher consumers are able to pay higher prices for them.

In conclusion, for an award winning firm, that should be able to afford TQM, they should implement it
this is because this companies product are of the utmost quality, this would mean that they would be
able to charge higher price and keep their competitive edge because firms constantly improve in short
period of time and if you add TQM, the quality of the product at ADS will increase thus keeping their
competitive edge and their market share.