Quality

1. Quality Operations Management Intermediate Business Management

2. What is a quality product? A customer views a quality product as one that: • Uses high quality of materials • Has a high standard of workmanship • Works perfectly • Is reliable • Is to the specification stated on the packaging R Alexander

3. Why make quality products? • Easier to satisfy customer demands • Keeps customers coming back • Easier to meet safety standards • Easier to meet legal requirements • The product can be repaired easily • The business can charge a premium price • The product could have a high status in the market. R Alexander

4. Question Outline reasons an organisation would strive to produce a quality product. (3 marks) R Alexander

5. Solutions Producing a high quality product would ensure customers returned to buy the product. It would also enable the business to charge a premium price for the product. It would also mean the product would have a high status in the marketplace. Etc. R Alexander

6. Measures to ensure high levels of quality Businesses use several methods to check that their goods and services meet quality standards: • Quality control • Quality Assurance • Benchmarking • Quality Circles • Quality Management (TQM) • British Standards R Alexander

7. Quality Control • This process was a traditional method of quality control, whereby inspectors were required to spot check the final products. • Whenever sub-standard products were found it was the duty of the inspector to remove the items, send them, back or discard them. • This proved to be an extremely costly exercise as it resulted in a high level of wastage. • At no point in the process were the production workers involved in determining what was the expected level of quality. R Alexander

8. Quality Assurance • This method is based on the prevention of errors. • The principle is the create a production process of “right first time, right every time”. • Quality checks would be conducted at each stage of production. • This process of quality control made the production workers aware of the standard which was required by the business. • The workers would operate as a team to check and monitor the progress and accuracy of the production process. R Alexander

9. Question • Distinguish between Quality Control and Quality Assurance (3 marks) R Alexander

10. Solution • Quality control is involves checking the product at the end of the process whereas quality assurance involves checking it throughout the production process. • Quality assurance involves the workers operating as a team to check the production process whereas in quality control this would be done by an inspector. • Quality control does not involve the production workers in determining what was the expected level of quality whereas in quality assurance, the production workers are aware of the standard required by the business. R Alexander

11. Benchmarking This is a method of improving quality or production by copying the best techniques used by another organisation regarded as the ‘best’. Advantages • Setting targets can be very motivating for staff • Can create a culture where continual improvement is standard practice. R Alexander

12. Quality Circles Groups of workers meet at regular intervals to discuss where improvements can be made in the production process. Suggestions then made to management for approval. Advantages • Workers should be more motivated • They should be more productive • They should be more willing to introduce new production methods. R Alexander

13. Questions Explain the benefits of the following methods of quality: • Benchmarking • Quality circles (4 marks) R Alexander

14. Solutions – complete with class • An advantage of benchmarking is that targets can set for staff to achieve. This is an advantage because…… • A second advantage is that it can create a culture where continual improvement is standard practice. This is an advantage because…… R Alexander

15. Solutions – complete with class • An advantage of quality circles are that staff should be more motivated. This is an advantage because…… • A second advantage is that staff should be more willing to introduce new production methods. This is an advantage because…… R Alexander

16. Quality Management • Formerly known as Total Quality Management • It is a system of doing things right the first time. No errors are tolerated. • All staff are involved in ensuring absolute quality of their work, regardless of their position. Work processes are closely monitored. • Quality circles and teams constantly strive to make processes more efficient and reduce waste. R Alexander

17. Quality Management • In order for it to be effective the following factors must be implemented: • Clearly defined policy on the required levels of quality. • Every employee must be focused on customer satisfaction. • Staff must be provided with appropriate training to ensure they know how to meet the set standard. • People should be appointed to constantly check and monitor that the process is working. • Teamwork, at all levels, should be encouraged. R Alexander

18. Quality Management - Kaizen • The Japanese have perfected the concept of total involvement in the life of the organisation. • Workers are part of a team; there are team songs and team competitions. • Everyone is expected to strive towards continual improvement. Toyota Video R Alexander

19. Question • Describe what is meant by Quality Management. (2 marks) • Identify 3 factors necessary for Quality Management to be implemented. (3 marks) R Alexander

20. British Standards Institution (BSI) • Organisation that produces national standards for certain products. • Product meeting agreed quality and safety standards receives BSI “Kitemark” symbol. • Advantages • May give an organisation a competitive advantage • Gives consumers confidence in the product • Disadvantages • Process and paperwork may be lengthy R Alexander

21. Other trade organisations • Certain trade organisations introduce standards and logos for products which meet quality standards. • Red Lion Quality for eggs • British wool symbol • Association of British Travel Agents (ABTA) • Investors in People (IIP) R Alexander

22. Question Explain the costs and benefits of a business aiming for a BSI Kitemark. (3 marks) R Alexander

23. Solution – complete with class • One benefit is that it gives an organisation a competitive advantage. This is a benefit because…… • A second benefit is that it gives consumers confidence in the product. This is a benefit because…. • A cost is that the process and paperwork may be lengthy. This is a cost because…… R Alexander

24. Activity • Design a poster outlining the different methods organisations can use to ensure customers receive a quality product. (include a description and the advantages and disadvantages of each) • Design a poster outlining the different payment methods an organisation could use to reward its workers. (include a description and the advantages and disadvantages of each) R Alexander