Customer-Driven Quality
Since each consumer has a unique taste, background, and beliefs, the value of a good or service will have a different meaning to various consumers. Only the party that receives the good or service can appraise the true value of the good or service.
Manufacturing
Maxx-Air Vent Corporation (MA) is a plastic vent manufacturer located in Tampa Florida. MA’s largest customer base is found in the recreational vehicles (RV) industry. MA manufacturers the air vents found atop of most RVs throughout the nation. MA is held to the highest quality standards by their RV customer base. The vents must meet critical visual and dimensional criteria in order to be accepted by RV. Domestic competition continually enforces the quality expected for the prices paid by RV. MA explored foreign manufacturers and suppliers but the quality would not meet RV’s expectations. MA experimented with foreign manufacturing in a cost cutting measure to manufacture foreign and add a mark up. The vents were sent back to MA and full refunds were expected because the products did not meet RV’s expectations. MA was forced to eat millions of dollars in bad product or else lose RV as a customer. MA moved all manufacturing operations back to Tampa and instituted a new quality standard. The new quality standard was devised by an outside firm and was expensive to introduce, however, MA was able to repair their relationship with RV and procure future sales opportunities because of their newly found quality standards. MA was able to repair poor quality and customer satisfaction issues with an enhanced and directed quality policy. MA took the necessary actions to meet RV’s customer satisfaction needs.
The ...