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  © 2012 Pearson Education. All rights reserved. Balanced Scorecard: Quality, Time, and the Theory of Constraints  © 2012 Pearson Education. All rights reserved. Quality as a Competitive Tool  Quality  — the total features and characteristics of a product or a service made or performed according to specifications to satisfy customers at the time of purchase and during use.   A quality focus reduces costs and increases customer satisfaction.  © 2012 Pearson Education. All rights reserved. Quality as a Competitive Tool  Focusing on the quality of a product will generally build expertise in producing it, lower the costs of making it, create customer satisfaction for customers using it, and generate higher future revenues for the company selling it.  © 2012 Pearson Education. All rights reserved. Two Basic Aspects of Quality 1. Design quality  — refers to how closely the characteristics of a product or service meet the needs and wants of customers 2. Conformance quality  — refers to the performance of a product or service relative to its design and product specifications
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