Quality & Value : Providing Required Customer’s Utility
Quality & Value are crucial aspects for companies, management and customers. Maintaining quality and value ensures that customers gain and get the utility and benefits they are seeking from products and services. When people purchase a product/service, they actually look for a specific utility or benefit from it. However, they sacrifice some of their resources, such as the time and effort to look for it, the money paid for its price, and the effort to learn how to use and benefit from it. Thus, if the product/service satisfies this need or utility, then we can say that the product has high quality. Otherwise, there is a problem in the quality of the product/service. The concept of quality is extremely important in all managerial and organizational functions & tasks, but it started as part of the controlling function by inspecting final products for quality and defects. It is stated as one the topics of part 6 (Controlling) in Management 2015 Book, the 1st book in your channel: Management with Merits – Manage to Prosper. We have already started discussing this part and function (Controlling) in the last post/video. Thus, in this post, we finish the rest of this part. Furthermore, the book has been introduced before in a previous video. We have also discussed parts 1 to 5 of it in previous posts/videos. To download the presentation associated with this video in PDF, kindly go the video in YouTube and click on the link in the descriptions section below the video. To access all our posts and sessions for this book, kindly go here.
Quality & Value : Concept of Quality
Quality is defined by the book as the ability of a product or service to reliably do what is supposed to do and to satisfy customer’s expectations. Thus, if you purchase a product or service, expecting that it will satisfy a specific need for you because it states that it does so, then the product/service must fulfill this promise to be of high quality. Unfortunately, this is not often the case in our reality, especially in the Arab world. Companies and dealers tend to claim bogus or fake attributes or properties for their products or services in order to gain publicity and profit, without caring of reliably providing such promised services and benefits. As a result, quality will be seriously in doubt. Such practices cost companies huge amount of losses and degrade their reputation and customer’s loyalty. For example, Apple has lost about 100 million dollars as a result of quality problems with the batteries of their 1st three generations of its product iPod.
Quality & Value : Concept of Value
Depending on the above, if the product/service has high quality, then it will be definitely of value to the customer because it satisfies the customer’s needs & wants. Thus, products/services must be of value to customers, which is defined by the book as the performance, characteristics, features, and attributes, and any other aspects of goods and services for which customers are willing to give up resources. Thus, any product/service must be of high quality in order to provide “value” for the customer. In order to provide such value, companies care about carefully managing their value chains, which is simply all the processes, procedures and tasks undertaken by the company during all the steps required to produce the final product/service from the raw materials, up to handing the final product/service to the customer. Thus, all these steps must actually add value to the product/service, which means that performing them must enhance the utility or value that the customer is looking for from this product/service. Otherwise, any step or task will be simply “waste”. For example, Starbucks American Company states that it manages its value chain carefully, efficiently and effectively from the beans of the coffee until handing the final best cup of coffee to the customer.
Production & Operations Management :
Successful companies tend to build quality and value in all of their operations. Thus, the aspects of quality and value are strongly related to “Operations Management”, which is the process of carefully managing, coordinating and overseeing the transformation of the companies’ production inputs and resources (financial, human, capital, time, intellectual…) to final products and services effectively and efficiently. Operations Management will be discussed in details when we take one of the channel’s books, that is: “Operations Management”,by Reid & Sanders, (4th Edition) published by Wiley in 2011, U.S.A.
That was our session for today. By this lesson, we have successfully finished the first book in the channel in its 1st year (Management 2015) book. Next session, we will start discussing the 2nd book in the channel’s first year, which is “Entrepreneurship – Successfully Launching New Ventures – 2012”. It is a great American book that we have introduced before in a previous video. Thank you so much for watching and following us. Watch and follow us each Thursday on your channel Management with Merits – Manage to Prosper. Subscribe to the channel in YouTube and activate the notifications bell there. Follow us, participate with us and share the channel via all our electronic contact platforms.