Quality vs. Quantity in Production and Services

If you've ever been caught up in the dilemma of quality vs. quantity, this article is for you. In short, quality is typically better than quantity, but not always. This article will explore the pros and cons of both in detail.

Production, or creating material goods or services, is an industry that faces this dilemma every day. No one wants to buy from a low-quality producer. The production industry is one of the few that's almost universally accepted that quality matters, and it's closely tied to the perception of value.

Quantity or quality: What's better?

Quality over quantity means producing better products and costing less to produce. However, this is not always the case. There are several ways in which volume can be better than quality. Let's look at some of the advantages volume has over quality.

• Production efficiency is increased with increased volume. When you produce more of a product, you potentially make fewer mistakes.
• In addition, when you make more of a product, you can use economies of scale to run your production operation at a lower fixed cost. This decreases your variable cost for every unit.
• Increased production volume can improve your business's cash flow by collecting the sales revenue sooner.
• Increased production volume allows you to pay off your fixed costs more quickly and leave more money in your bank account for other investments.

So, we can see that in several ways, volume outperforms quality, but what about the circumstances in which quality is better? In many instances, there are cases in which quality is preferable and essential. 

• A product that lacks quality will usually be unusable. Such a product may not even be fit for purpose, and the customer has no assurance that it will help them achieve their goals. This lack of quality means customers will not buy from you again and may never refer others.
• Poor quality products can cost thousands to fix, and time is money. Compare this to the cost of poor-quality volume. A product with poor quality will cost you more to make and more to return.
• When a product receives adequate quality, it is functional and aesthetic. When an object has poor quality, it may look good but will likely fall apart shortly after purchase.
• In a world filled with competition, customers instinctively seek out products made with quality and therefore won't purchase from a low-quality provider.

What matters is customer satisfaction. It's best to never compromise on quality while maximizing your profits, whether it's the production or service industry.

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Written By The Strategic Advisor Board - Joe Trujillo
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