4.3 Achieving Quality Production

IGCSE Business Studies

LEARNING OBJECTIVES

• To understand what ‘Quality’ means and why it is important

• To understand the concept of ‘quality control and how businesses implement quality control

• To understand the concept of quality assurance

3

Starter – What is quality?5 mins

In pairs, consider an example of something you purchased that you considered to be ‘good quality’. Why did you consider the quality to be good?

Then, consider an example of something you purchased that you considered to be ‘bad quality’. Why did you consider the quality to be bad?

So… How could we define the term ‘quality’?

What is Quality?

Quality is about satisfying customers’ needs and

expectations.

Quality is ‘fitness for purpose’

3 Aspects to Quality

1. Quality 2. Quality Control 3. Quality Assurance

Why is Quality a Concern?

• Gives competitive advantage

• Encourages return purchases

• Provides customer with information and builds consumer confidence in the brand

• Reduces costs incurred in solving post sales problems

• Helps improve efficiencyIf quality control breaks down the cost

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Epidemic.

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Quality Control

• Process of identifying faults and errors to eliminate them.

• The responsibility of every member of the workforce for the quality of products and services provided by the business.

• Emphasis on reducing defects, etc. before it gets to the final stage of production and certainly to the consumer.

Quality Assurance

• Setting standards• Applying the standards across a business’

activities• Guaranteeing that these standards will be met

Quality Assurance

• The process whereby quality is at the forefront of every stage of the development, design, marketing, manufacturing and selling process.

• ‘Quality’ is influenced by the internal philosophy of the business and the external influences…?

Quality Assurance

• Focuses more on prevention rather than inspection.

• Employees checking their own work – Self checking

• Employees held responsible for their own work.

What are the benefits of quality assurance/control?

• Customer confidence • Reputation• Cost – return to base• Motivation of employees• Pricing • Warranty on costs• Customer loyalty and repeat purchasing.

• Any disadvantages?

• WHAT ARE THE DIFFERENCES BETWEEN QUALITY ASSURANCE & QUALITY CONTROL?

National and International Standards

Bodies that exist to promote quality:

• International Standards Organisation (ISO) issues global standards, including ISO 9000

• British Standards Institution (BSI) sets quality standards for British industry

• British Toy and Hobby Association (for example, covering a trade or set of markets)

ISO 9000 Benefits

• Businesses, can base their activities (products and services offered) on requirements that are accepted widely across the globe

• As these standards have a worldwide acceptance, consumers are served with an increasingly wide choice of products and services

• Technology becomes compatible across most business organisations

Total Quality Management (TQM)

TQM is a management approach which seeks to involve all

employees in the process of improving quality.

TQM (Total Quality Management)

• Name given to quality control• Features of TQM:

– Quality Circles – meetings of relevant workers to discuss issues relating to maintenance and improvement of quality in the business – may also double as a form of empowerment and motivation.

– Statistical Process Control – statistical data generated to inform the evaluation of processes within the business.

– Zero defects – systems in place to ensure that no product leaves the business with a defect – important in building supplier relationships, image, reputation.

Quiz time

• Quiz 1 Grab the white boards!