Is Quality an expensive process?
Quality indeed is an expensive process as it plays a significant role in the company’s overall production. The Six Sigma principles outline that the primary focus of business enterprises is customer satisfaction, especially with the current competition. Concerning Coca-Cola products, the customers correctly identify with the predominant taste and value of the products and services (Panigrahi, 2020). As such, there cannot be a substitution for the quality value since customers recognize such inadequacies reasonably fast. Given the rapid product reviews and digital space, clients tend to share information about products, which subsequently negatively impacts an organization’s sales.
Furthermore, focusing on Quality determines the ultimate price customers are willing to pay at a fair market price. For instance, the Coca Cola customers are eager to pay slightly more for products and services as compared at approximately 29.58 percent against 16.29 percent for Pepsi Co (Štofová & Kopčáková, 2020). However, the counter studies indicate that 85 percent of quality aspects occur in a project due to negligence of the management system.
Is it time-consuming?
The impact of quality management influences several processes in the production chain. Firstly, it affects delivery, where when the output is rejected under quality standards, the entire work must be reprocessed to match the intended Quality if the process requires additional time and resources.
Secondly, trust issues can arise after delivering products and services due to quality concerns. For instance, the new Coca-Cola product packaging can be an issue for the new market segment (Panigrahi, 2020). As a result, this issue would be a significant obstacle for the organization regarding the time taken to initiate changes and regain market trust.
Another time-consuming factor associated with quality management is competition. Lack of proper focus on Quality opens the doors to product skepticism resulting from the reviews and social media platforms. Consequently, this action will trigger the savvy competitors to take advantage of the shortcomings to dominate the market (Štofová & Kopčáková, 2020). The organization will then be forced to rework its strategies to regain its presence which is time-consuming and unpredictable.
Internal Failure Costs
These are costs incurred to mitigate the defects before the goods and services are delivered to the final consumer. According to Panigrahi (2020), Coca-Cola Company can incur the following internal associated costs; Failure in the analysis regarding the new product line, especially in the new market segments such as soft drinks and energy drinks. Secondly, it can suffer from the rework or rectification costs, especially on the branding and packaging of its products. Additionally, scrap can also be a common issue with the production lines, with some machines turning to be defunct and irreparable.
External Costs
These are costs that result from remedying the defects discovered by the ultimate customers. Coca-Cola can incur expenses such as; complaints whenever the customers complain about the products and the Quality of services offered. For example, customers raised objections about the zero sugar carbonated drinks at the beginning of the product launch (Panigrahi, 2020). This action forced the organization to reassure the customers of the health benefits associated with the product via advertisements and other marketing strategies. Additionally, the warranty claims witnessed in other tailored services can be a considerable loss to the firm at any time of claim.
In the final analysis, the external costs are relatively more expensive than the internal failure costs. They involve the organization’s material review boards and sufficient time to address the issues amicably. Therefore, Coca-Cola Company should limit these defects in quality management to prevent such losses in the future.
References
Panigrahi, V. (2020). An Organisation Study On The Coca-cola Company (Doctoral dissertation, CMR Institute of Technology. Bangalore). http://203.201.63.46:8080/jspui/bitstream/123456789/5790/1/MR1762%20-%20VANITA%20SURESH_1C19MBA60.pdf
Štofová, L., & Kopčáková, J. (2020). The Competition Strategy between Coca-Cola vs. Pepsi Company. Calitatea, 21(179), 40-46. https://www.proquest.com/openview/0848fff31763e682817625ea0fcd3393/1?pq-origsite=gscholar&cbl=1046413
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