In everyday language we often use the word quality to mean grade. When we say something is high quality what we really mean is that it’s high grade. Consider two very different cars as an example: the 7 series BMW and the Toyota Corolla. The layperson might say that the BMW is the higher quality car, but the businessman or woman may very well disagree.

This is because the business definition of quality is that a product or service is fit for purpose. In other words, if all of the design goals are met it should be considered as being of good quality. This lets us recognize that the Corolla succeeds in providing reliable and economical transportation. By this definition it’s a quality car, although not one that’s high grade. Also, notice how there’s an implication of consistency. It’s not enough for just some Corollas to be reliable and economical; every single vehicle must meet the design goals, and therefore be of the same quality.

A product or service that meets the needs of the customer, at a price he or she is willing to pay, and does so every time they purchase or use it, is a quality product. If a customer feels that the product or service failed to meet their expectations, (which naturally, includes a sense of value-for-money,) they are unlikely to come back. That customer has been lost forever, and may tell other people about their bad experience, possibly even through on-line reviews read by thousands of consumers. For the business to survive it will have to go to the expense of advertising and perhaps offering some initial discounts. It’s usually less expensive to hang on to existing customers.

Some business owners will argue that they can’t afford to provide a quality product or service, or that their customers aren’t willing to pay the price they’d need to charge. In times past the general approach to ensuring delivery of a quality product or service was to inspect, and if necessary rework or replace the offending item, but that’s now seen as being wasteful. Of course, it’s also expensive, so the modern business practice is to incorporate quality from the beginning.

This means ensuring that things are made or done right first time. One way of doing this is to establish procedures that detail how every job is to be done. This avoids the inconsistencies and errors that result from people taking different approaches. Checklists can also help to ensure that nothing is overlooked or forgotten. Another technique is to error-proof the process by making it impossible for a job to be done wrong. (This approach is often used in assembly operations.)

If you ever visit a fast food chain you’ll see that they have defined their processes thoroughly, to the point where the product is very consistent, regardless of the time you visit, and even between locations. In fact this remarkable ability to deliver the same product time after time, and at a low price, is one of the factors in their success.

It must be admitted though, that procedures, checklists, error-proofing, and the staff training that goes along with them, do have their costs. So the businessman or woman needs to balance the cost of providing bad quality (refunds, complaints, wasted materials and lost customers,) with the cost of ensuring good quality. However, the cost of preventing problems is usually relatively low, so most businesses find there’s an immediate return from investing in quality.