2.4.4 - Quality management

    Cards (11)

    • Quality
      -is to the extent that the product o service meets the customer requirements. This means the product/good is fit for purpose.
    • How to achieve quality
      -have a clear understanding of customer needs.
      -train employees in quality procedures.
      -Invest in technology.
      -Work with high quality suppliers.
      -Achieving high quality can improve customer satisfaction, help the business differentiate their product/service from competitors and adds value to the product allowing a premium product to be charged.
    • Quality control:
      -is about the product.
      -Quality is checked at the end of the production process.
      -Focuses on identifying any faults.
    • Quality assurance
      -is about the process.
      -All employees are involved in quality assurance.
      -Quality is considered in every step of the production process.
      -Focuses on continual improvement of quality.
    • Difficulties improving quality:
      -customers perception of quality is constantly changing.
      -a successful business could let quality slip if there is no incentive to outperform rivals.
      -Improving quality can add more work so might be naturally opposed by workload.
    • Consequences of poor quality:
      -if products are returned by a customer this can be expensive.
      -can damage reputation.
      -There could be legal costs if customers cue the business.
    • Total quality management - TQM
      -is a management system that bases quality as being the priority throughout the organisation.
    • TQM - advantages
      -employees are motivated
      -enhances reputation
      -less development time for new products
      -Improves quality
    • TQM - disadvantages
      -takes time to introduce
      -some staff can be resistant to change
      -defects may not be spotted till the end of production and can be expensive to fix.
      -Can be costly to train the staff.
    • Quality circles
      -a small group of employees who meet on a regular basis and talk about quality problems and ways to improve production process.
      -ensures all aspects of supply chain are considered and give people an opportunity to work closely together.
    • Competitive advantage from quality management
      -this may enable them to appear superior to their rivals to customers.
      -Customers may be willing to pay more for better quality.
      -Customer may repeat purchases of a product as they regard is as the best in the market.