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Managing Quality
What this topic is about Meaning and importance of quality Quality control compared with quality assurance Approaches to monitoring and improving quality
The Business Need for Quality Quality is one of the most important challenges facing a business Markets are more competitive: customers are more Knowledgeable Demanding Prepared to complain about poor quality Able to share information about poor quality (e.g. via email & social networking) If a business can develop a reputation for high quality, then it may be able to create an advantage over its competitors
What is Meant by Quality? Quality is about  meeting the needs and expectations of customers Customer needs & expectations: e.g. Performance (fit for purpose) Appearance Availability & delivery Reliability / durable Price / value for money If a product or service meets all those needs - then it passes the quality test If it doesn't, then it is sub-standard
Examples of Poor Quality Product fails – e.g. a breakdown or unexpected wear and tear Product does not perform as promised Product is delivered late Poor instructions/directions for use Unresponsive customer service
Costs of Poor Quality Many costs of poor quality, including: Lost customers (expensive to replace – and they may tell others about their bad experience) Cost of reworking or remaking product Costs of replacements or refunds Wasted materials Poor quality is a source of competitive disadvantage If competitors are achieving higher quality, then a business will suffer
Quality Management Achieving high quality does not happen by accident The production process must be properly managed Quality management:  Concerned with controlling activities with the aim of ensuring that products and services are fit for their purpose and meet the specifications Two main approaches Quality control Quality assurance
Quality Control - Definition The process of inspecting products to ensure that they meet the required quality standards
Quality control (1) Traditional way of managing quality Concerned with checking and reviewing production Quality control is mainly about "detecting" defective output - rather than preventing it Quality control can be a very expensive process
Quality control & Inspection When raw materials are received prior to entering production  Whilst products are going through the production process  When products are finished - takes place before products are despatched to customers  Three main points in production when inspection is used in quality control
Problems with quality inspection Costly Often at the end of the production process – i.e. too late Inconsistent inspections Often not compatible with modern production systems Done by inspectors rather than workers themselves
Quality Assurance - Definition The processes that ensure production quality meets the requirements of customers
Quality Assurance (1) How a business can design the way a product of service is produced or delivered to minimise the chances that output will be sub-standard Focus of quality assurance is on the product design/development stage If the production process is well controlled - then quality will be "built-in“ If the production process is reliable - there is less need to inspect production output (quality control)
Quality Assurance v Quality Control Quality Assurance Quality Control Focus on processes Focus on outputs Achieved by improving production processes Achieved by sampling & checking (inspection) Targeted at the whole organisation Targeted at production activities Emphasises the customer Emphasises required standards Quality is built into the product Defect products are inspected out
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
Total Quality Management (“TQM”) TQM is essentially an “attitude” Whole business understands need for quality and seeks to achieve it Everyone in workforce is concerned with quality at every stage of production process Quality is ensured by workers and not inspectors
Advantages of TQM Puts customer at heart of production process Motivational since workers feel more involved and are making decisions Less wasteful than throwing out defective finished products Eliminates cost of inspection
Disadvantages of TQM Requires strong leadership – often missing in a business Substantial investment in training & support – but return on investment not immediate May become bureaucratic Disruption and costs may outweigh benefits
Test Your Understanding http://www.tutor2u.net/business/quiz/quality/quiz.html
Managing Quality

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Aqa bus2-managingquality

  • 2. What this topic is about Meaning and importance of quality Quality control compared with quality assurance Approaches to monitoring and improving quality
  • 3. The Business Need for Quality Quality is one of the most important challenges facing a business Markets are more competitive: customers are more Knowledgeable Demanding Prepared to complain about poor quality Able to share information about poor quality (e.g. via email & social networking) If a business can develop a reputation for high quality, then it may be able to create an advantage over its competitors
  • 4. What is Meant by Quality? Quality is about meeting the needs and expectations of customers Customer needs & expectations: e.g. Performance (fit for purpose) Appearance Availability & delivery Reliability / durable Price / value for money If a product or service meets all those needs - then it passes the quality test If it doesn't, then it is sub-standard
  • 5. Examples of Poor Quality Product fails – e.g. a breakdown or unexpected wear and tear Product does not perform as promised Product is delivered late Poor instructions/directions for use Unresponsive customer service
  • 6. Costs of Poor Quality Many costs of poor quality, including: Lost customers (expensive to replace – and they may tell others about their bad experience) Cost of reworking or remaking product Costs of replacements or refunds Wasted materials Poor quality is a source of competitive disadvantage If competitors are achieving higher quality, then a business will suffer
  • 7. Quality Management Achieving high quality does not happen by accident The production process must be properly managed Quality management: Concerned with controlling activities with the aim of ensuring that products and services are fit for their purpose and meet the specifications Two main approaches Quality control Quality assurance
  • 8. Quality Control - Definition The process of inspecting products to ensure that they meet the required quality standards
  • 9. Quality control (1) Traditional way of managing quality Concerned with checking and reviewing production Quality control is mainly about "detecting" defective output - rather than preventing it Quality control can be a very expensive process
  • 10. Quality control & Inspection When raw materials are received prior to entering production Whilst products are going through the production process When products are finished - takes place before products are despatched to customers Three main points in production when inspection is used in quality control
  • 11. Problems with quality inspection Costly Often at the end of the production process – i.e. too late Inconsistent inspections Often not compatible with modern production systems Done by inspectors rather than workers themselves
  • 12. Quality Assurance - Definition The processes that ensure production quality meets the requirements of customers
  • 13. Quality Assurance (1) How a business can design the way a product of service is produced or delivered to minimise the chances that output will be sub-standard Focus of quality assurance is on the product design/development stage If the production process is well controlled - then quality will be "built-in“ If the production process is reliable - there is less need to inspect production output (quality control)
  • 14. Quality Assurance v Quality Control Quality Assurance Quality Control Focus on processes Focus on outputs Achieved by improving production processes Achieved by sampling & checking (inspection) Targeted at the whole organisation Targeted at production activities Emphasises the customer Emphasises required standards Quality is built into the product Defect products are inspected out
  • 15. 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
  • 16. Total Quality Management (“TQM”) TQM is essentially an “attitude” Whole business understands need for quality and seeks to achieve it Everyone in workforce is concerned with quality at every stage of production process Quality is ensured by workers and not inspectors
  • 17. Advantages of TQM Puts customer at heart of production process Motivational since workers feel more involved and are making decisions Less wasteful than throwing out defective finished products Eliminates cost of inspection
  • 18. Disadvantages of TQM Requires strong leadership – often missing in a business Substantial investment in training & support – but return on investment not immediate May become bureaucratic Disruption and costs may outweigh benefits
  • 19. Test Your Understanding http://www.tutor2u.net/business/quiz/quality/quiz.html