Quality

AS Business Studies Unit 2

Aims and Objectives

Aim: Understand the importance of quality to businesses Objectives: Define quality Explain the difference between quality control and quality assurance Analyse the effects on productivity of TQM

Level E-D C-B A-A*

Starter
What is meant by the word quality? Why may producing quality products be important for businesses?

Quality
Is about meeting the needs and expectations of customers.
Performance Appearance Reliability Price

Quality is important in generating a competitive edge over rival firms through reputation.

Quality

What factors would signal to you that a business was poor quality or a product was poor quality?

Poor Quality
Product Fails/Breaks Poor instructions Product does not perform as promised Poor customer service Late delivery Poor build quality

Defaults

Missing Component s

Costs of Poor Quality

Lost Customers Wasted Materials Bad Reputation

Replacements / Refunds

Cost of Remaking Products

Competitive Disadvantage

Poor Qualit y

Competitiv e Disadvanta ge

Quality Control

The process of inspecting products to ensure that they meet the required quality standards.

Quality Control
Checking and reviewing production. Detecting defective output rather than preventing it. Can be very expensive process.

Quality Control
Three main points in production when inspection is used: 1) When raw materials are received 2) Whilst products are going through production process 3) When products are finished but before being despatched to customers

Problems With Quality Inspection

Costly Inconsistent inspections Done by inspectors rather than workers themselves

Quality Assurance

The processes that ensure production quality meets the requirements of customers.

Quality Assurance
How a business can design the way a product/service is produced or delivered to minimise the chances that output will be sub-standard. Focus is on the design/development stage.

Quality Assurance v Quality Control

Quality Assurance Focus on processes Achieved by improving production processes Targeted at the whole organisation Emphasises the customer Quality is built into the product Quality Control Focus on outputs Achieved by sampling and checking (inspection) Targeted at production activities Emphasises required standards Defect products are inspected out

Total Quality Management (TQM) Approach to Quality Assurance A management philosophy committed to a focus on continuous improvements of product and services with the involvement of the entire workforce.

LEGO Production
6 workers Task it is to build a yellow Lego shaped T on the other side of the room. Must be 12 blocks high by 10 wide. Not allowed to move the Lego box. Time how long it takes to make it.

LEGO Production
6 workers now in a production line Task it is the build a yellow Lego shaped T on the other side of the room. Must be 12 blocks high by 10 wide. Must be Yellow in colour Any bricks the wrong colour must be sent back Not allowed to move the Lego box. Time how long it takes to make it.

TQM
Everyone in workforce is concerned with quality at every stage of production. Quality is ensured by workers and not inspectors. If a red Lego brick was passed down the production line it would be removed or sent back!

TQM Analysis
In groups brainstorm the advantages and disadvantages of introducing a TQM system.

TQM Analysis
Advantages
Puts customer at heart of production process. Motivational since workers feel more involved making decisions Cuts waste Eliminates cost of inspection

Disadvantages
Requires strong leadership Substantial investment in training Disruption and costs may outweigh benefits

Plenary
What does the success of TQM depend on? Managers relationships with workers Workers being motivated Managers trusting workers Training to be able to identify quality and defects