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Essay / Customer-Focused Quality - 1805
Customer-Focused Quality Since each consumer has unique tastes, backgrounds and beliefs, the value of a good or service will mean different things to different consumers . Only the party receiving the good or service can assess the true value of the good or service. ManufacturingMaxx-Air Vent Corporation (MA) is a plastic vent manufacturer located in Tampa, Florida. MA's largest customer base is in the recreational vehicle (RV) industry. MA makes the air vents found atop most RVs across the country. MA is held to the highest quality standards by its RV customer base. Vents must meet critical visual and dimensional criteria in order to be accepted by RV. National competition continually imposes the expected quality of the prices paid by RV. MA explored overseas manufacturers and suppliers, but the quality did not meet RV's expectations. MA experimented with overseas manufacturing as a cost-cutting measure to manufacture overseas and add a markup. The vents were returned to MA and full refunds were expected as the products did not meet RV's expectations. MA was forced to eat millions of dollars in bad products or risk losing RV as a customer. MA moved all manufacturing operations to Tampa and instituted a new quality standard. The new quality standard was designed by an outside company and was costly to introduce. However, MA was able to reestablish its relationship with RV and generate future sales opportunities with its new quality standards. MA has been able to resolve poor quality and customer satisfaction issues through an improved and targeted quality policy. MA has taken the necessary steps to meet the satisfaction needs of RV customers. The definition of quality varies depending on the industry that defines quality. In manufacturing, quality is the basis on which customers are retained and acquired. Quality in a manufacturing environment can be measured and monitored because quality is physical. Product quality sets apart competing organizations in the industry. The manufacturing industry is different from the service sector because both provide a product/service. Customers pay for the product/service and expect quality. Nonprofit organizations generally provide the highest quality possible with the funds and resources available. Manufacturing and nonprofit quality standards are different because of expectations. Government service does not care about quality because expectations do not demand quality.