2.2 Quality Management- Operations Flashcards
Consumers perspective of good quality
Value for money
Reliability and durability
Quality of the after- sales service
Producers perspective of good quality
Consistently meeting an exact specification of standard
Development of a highly skilled workforce
Reduction or elimination of customer complaints
Quality control
It is a reactive approach to managing quality. Poor quality is identified within the production process after it has occurred. It often leads to scrapping products and there will be a varied standard of quality.
Quality assurance
This is based on the prevention of poor quality by anticipating what might go wrong and taking action to prevent this from happening. Methods of this is include BPB, TQM, quality circles, mystery shoppers, and quality standards.
Quality assurance- Total quality management
TQM is a core philosophy that a organisation has and is explicit in their mission statement. The managers must be committed to motivate and provide the necessary resources. The concept of quality chains means that each employee is responsible for the quality of a good product.
Advantages of TQM
A focus on customer requirements will enhance the reputation of the organisation.
Reduced wastage as a result of a ‘first time right’ approach.
The continual scope for improvement and enhancement means the business is always moving forward and can remain competitive.
Disadvantages of TQM
Set up costs are high with a need for training and time taken to design procedures.
Need to continually monitor and audit the implementation of procedures.
It depends upon the commitment from all the staff in the organisation.
Quality assurance- Quality standards
Quality standards as defined by government bodies, industry watchdogs and consumer groups. It is standards and qualities that a business have to meet, set by the government.
Quality assurance- Best practice benchmarking
BPB involves finding out what, from the point of view of the customer, it is the difference between an ordinary product and a excellent product.
Information is collected from the market leader.
The market leader may be reluctant to provide performance figures to be used by their competitors.
Quality assurance- quality circles
It is is a group of 5-20 workers who volunteer to meet regularly during normal working to discuss ways of improving quality. Members of a quality circle usually consists of factory floor workers. Employees will feel more involved ad they are being included in things with managers.
Quality assurance- Mystery shoppers
It evaluates customer experience, operational efficiency, employee integrity, use of merchandising, service/product quality.
Advantages of mystery shoppers
Feedback is received that cab be used to improve processes, training needs can be identified, improves customer retention, monitors quality of products and service.
It improves employee awareness of the importance of customer service. Reinforces positive action by action by offering an incentive-based reward system to employees and managers.
Fair trade
Fair trade is about achieving better prices and fair terms of trade for farmers in the developing world, who may been exploited b greedy purchasers who may not pass on profits.
Advantages of fair trade
The UK market for fair trade goods is doubling in size approximately every 2 years. Social demand means that there has been an increase in consumers wanting ethical products.
Increased customer loyalty as commitment to fairtrade.
A good public image. Recruitment of staff and volunteers will be easier as a fairtrade business will be viewed as being caring and ethical.
Disadvantages of fair trade
The price is higher for the consumer compared to non fairtrade products.
Small scale production is promoted by fairtrade, but economies of scale cannot be achieved.
Tarries are much lower for non-processed supplies so it may not be profitable for the business to import.
