2.4.4 Quality Management

Cards (22)

  • Quality Management
    The act of overseeing all activities and tasks that must be accomplished to maintain a desired level of excellence.​
  • Quality Control
    Inspecting the quality of output at the end of the production process
  • Quality Assurance

    Inspecting the quality of production throughout the process
  • Quality Circles
    Groups of workers meeting to regularly solve quality problems identified in the production process
  • Total Quality Management

    Organisation of the firm with quality at its core and every worker is responsible for quality
  • Zero-defects
    A product with no mistakes and is made correctly the first time
  • Strengths of TQM
    -Becomes deeply rooted in the company's culture
    -Quality is present in all parts of the business from design to customer service
  • Strengths of Quality Control
    -Can guarantee that no defective item will be sold
    -Improved reputation
    -Requires little training
  • Strengths of Quality Assurance

    -The firm has a quality system for every stage in the production process
    -Customers are reassured by quality checks so may pay more
  • Limitations of TQM
    -Staff may be sceptical and not implement strategies
    -It is expensive to integrate into the culture as staff need to be retrained
  • Limitations of Quality Control

    -Poor quality may be built into the product for inspectors to find
    -QC cannot be trusted if only a sample is used
  • Limitations of Quality Assurance

    -Does not guarantee a high-quality product
    -Encourages complacency as the firm continuously should improve
  • Indicators of Quality
    -Quick service
    -Efficient systems
    -Customer satisfaction
    -Outstanding products
    -Trained staff
    -Customer delight
    -Repeat purchases
  • Competitive Advantages of Quality Management

    -Increased sales mean high profit margins which can be invested in marketing to improve brand recognition
    -High quality can be a USP
    -Can expand to different markets using it's positive reputation
    -Increased brand loyalty and reputation
  • Disadvantages of Quality Management

    -Increased costs of r&d
    -Time-consuming so productivity decreases
    -Requires significant planning and resources
  • Elements of Continuous Improvement (Kaizen)

    -Improvements are based on people
    -Many changes are made for a large cumulative effect
    -Urges employees to do the job and improve
    -Uses cells who become experts on their area of production
  • Features of Kaizen
    -TQM
    -JIT
    -Teamwork and quality circles
    -Zero-defects
    -High levels of automation
    -Communication and cooperation between workers and managers
  • Examples of Kaizen
    -Higher capacity utilisation
    -Less waste
    -Reduced risk
    -Better customer experience
    -More accurate information
    -Efficient energy use
     
  • Importance of Quality Management
    -Consistent quality
    -Greater productivity
    -Customer satisfaction
    -Lower risks
    -Lower human errors
  • Benefits of Kaizen
    -Promotes teamwork
    -Fewer errors so less inspection and supervision
    -Reduces mistakes and waste
  • Consequences of Poor Quality

    -Loss of reputation
    -Decreased sales
    -Decreased price
    -Waste of resources
    -Increased costs
  • Ways to Improve Quality
    -Quality inspection program
    -Track errors
    -Investment in training
    -Quality circles