ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The most common are lost customers, lower productivity, and increased costs. In some cases, poor quality can also lead to product liability claims. In some cases, poor quality can also lead to legal action against the manufacturer or supplier.

Detailed explanation-2: -Since they improve your products and business operations, they lead to a stronger market position. Good quality management can enhance your organisation’s brand and reputation, protect it against risks, increase its efficiency, boost its profits and reduce waste, and position it to keep on growing.

Detailed explanation-3: -High quality ensures higher customer satisfaction and a greater chance of continued partnership. If customers aren’t satisfied, they will not return to you for business and will most likely voice their dissatisfaction to others and ruin your reputation within the industry.

Detailed explanation-4: -However, despite best efforts, there can be quality failures that result in product recalls, complaints, wastage, rework, and so on. These can lead to higher costs of manufacturing, have a negative impact on brand/reputation, and affect financial performance.