Final answer:
The term 'quality' in business refers to the degree of customer satisfaction. It can be defined as the degree to which a component or system satisfies stakeholder needs and expectations, or as the activities focused on providing confidence in meeting quality requirements. Total costs associated with quality can also be considered as a measure of overall quality.
Step-by-step explanation:
The term 'quality' is often used in business to refer to the degree to which a product or service satisfies the needs and expectations of customers. In the context of quality management, there are various definitions. One commonly used definition is that quality is the degree to which a component or system satisfies the stated and implied needs of its various stakeholders. This definition emphasizes the importance of meeting customer requirements and expectations.
Another definition of quality is that it is the activities focused on providing confidence that quality requirements will be fulfilled. This definition highlights the proactive nature of quality management and the importance of preventing defects and errors.
The total costs incurred on quality activities and issues are also sometimes considered as a measure of overall quality. These costs can be categorized into prevention costs, appraisal costs, internal failure costs, and external failure costs. This perspective emphasizes the financial impact of quality and the importance of investing in prevention to minimize costs associated with poor quality.