FARE 3310 Chapter Notes - Chapter 6: Customer Retention, Fuel Dispenser, Iso 9000

• School: University of Guelph
• Department: Food, Agricultural and Resource Economics
• Course: FARE 3310
• Professor: Getu Hailu

Document Summary

Managing quality helps build successful strategies of differentiation, low cost & response. Improvements in quality help firms increase sales & reduce costs which can both increase profitability. Increase in sales is usually in response to firms speed response, lower selling prices, and improve reputation or quality of products. Total quality management takes care of the customer. Quality: the ability of a product to meet consumer needs. Marketing people & customers lie the approach that quality = lies in the eyes of the beholder. To production managers, quality is manufacturing based. Another view is product based which views quality as precise, measurable & variable. For operations mangers the most important jobs is to deliver healthy, safe & quality products & services to customers. Poor quality can lead to injuries, lawsuits & increased government regulation. A manufacturer must accept responsibility for any poor-quality product released to the public. Iso 9000: a set of quality standards developed by the international organization for standardization.