High quality costs down and revenue up, Marketing Management

Assignment Help:

2JN is a large manufacturing organisation which is structured with a number of supervisors each responsible for their own work production unit. Supervisors report to a team of senior managers who in turn are accountable to a Managing Director (MD). Operations are supported by 2JN's own finance, sales, distribution and human resource units.

 Within the past two years, 2JN has implemented a series of initiatives aimed at reducing product defects and customer complaints. The initiatives have included the appointment of a few quality control inspectors to support supervisors. Despite these efforts, 2JN has lost some of its major customers to its competitors and its profits are declining.

Discuss the claim that high quality 'will both put costs down and revenue up'.

At a recent senior management meeting the MD made clear that TQM is vital to 2JN and that high quality 'will put costs down and revenue up'.

High quality may bring costs down in a number of ways:

 •  Quality is orientated towards the elimination or errors and, if successful, reworking costs and scrapped items will be decreased. This will help drive down unit costs of products.

  • Under TQM internal inspection costs will be decreased. With an improvement in quality inspection and testing, costs may be decreased or eliminated completely leading to decreased operating costs. Currently, 2JN operates a system of quality control including inspection of product quality. High quality through TQM will eliminate these costs as everyone becomes his own inspector and quality assurance replaces quality control.

 

 


Related Discussions:- High quality costs down and revenue up

Production concept, The Production Concept The manufacture concept hol...

The Production Concept The manufacture concept holds that consumers will favour products that are available and extremely affordable and that management  should,  then,  focus

Current marketing and internal firm environments, Your first assignment is ...

Your first assignment is to conduct a marketing audit on your chosen product. Information that will assist you to analyze this firm can be found on the internet, you can look to fi

Market attractiveness, Market attractiveness is a measure of the profit po...

Market attractiveness is a measure of the profit potential inbuilt in the structure of a market or industry. There are a large number of factors contributing to (and which may be

Define the term new brands, Define the term New Brands. New Brands: ...

Define the term New Brands. New Brands: A company may make a new brand name while it enters a new brand category for that none of the current brand of company names are a

Cisco case tsudy, How is building a brand in a business-to-business context...

How is building a brand in a business-to-business context different from doing so in the consumer market?

Explain about the advertisement and economy in marketing, Explain about the...

Explain about the Advertisement and Economy in Marketing. Advertisement and Economy: • Produces more employment • Fluctuations into Advertisement budget as per economi

Marketing Management, How should Shoppers? Stop develop its demand forecast...

How should Shoppers? Stop develop its demand forecasts?

#title.pricing, importance of pricing decisions to an organisation

importance of pricing decisions to an organisation

Third barrier of exchange in channels distribution, Explain the working of ...

Explain the working of third barrier of exchange in channels distribution. The third barrier arises through the variation in quantities and assortment demanded. Manufacturers u

MANAGING TECHNOLOGY AND INFORMATION, Discuss the issues associated with ...

Discuss the issues associated with a total outsourcing of CIS for WV8.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd