2.4.4

Question 1

What does ‘quality’ mean to the customer?

Answer 1

· Durability 
· Reliability 
· Design 
· Functionality 
· Value for money 
· Customer service 
· Meeting customer needs

Question 2

Why is ‘value for money’ important?

Answer 2

In most markets there is room for products of different quality, therefore the customer must be satisfied that the price reflects that quality

Question 3

Why is good design important?

Answer 3

So that the product can be produced: efficiently, reliably, and at the lowest possible cost

Question 4

Why are quality products good for a business?

Answer 4

· It allows you to charge a premium price
· Helps to attract and retain good staff
· Good brand reputation
· Retailers want to stock the product
· Fewer returns/replacements means a lower cost to the business
· It gives you a competitive advantage
· It helps the marketing of the company
· The product can become more price inelastic if customers perceive it to be of higher quality

Question 5

What effect(s) does quality have on competitiveness?

Answer 5

· Fewer businesses are competing solely on price
· At a similar price, the higher quality product is likely to win
· Quality can enable a business to differentiate their product from others

Question 6

Where is quality important, other than in the product itself?

Answer 6

· The buying process
· Product reliability
· Cost of ownership
· After-sales service

Question 7

What do poor quality products mean for a business?

Answer 7

· Lost customers (expensive to replace) and may tell others, especially online
· Product replacement increased unit cost
· Warranty claims cost money
· Cost of wasted materials
· If a competitors are achieving higher quality then a business will suffer

Question 8

What are some tangible ways quality can be measured?

Answer 8

• Reliability
• Functions and features
• Number of returns/defects
• Cost of ownership
• Support levels

Question 9

What are some intangible ways quality can be measured?

Answer 9

• Customer surveys
• Brand image
• Market reputation
• Exclusiveness

Question 10

What is quality control?

Answer 10

The process of inspecting a product to ensure they meet required standards - it is where products are inspected at the end of a production line and the defective ones are removed

Question 11

What idea is quality control centred around?

Answer 11

Mainly about ‘detecting’ defective output rather than preventing it - it is the traditional method of quality management

Question 12

What are the 3 main stages of inspection in quality control?

Answer 12

1. Check the raw materials, before the production process
2. At a point during the production process, take a sample from the production line and test it
3. Test a finished good before it is sent to customers

Question 13

What are the advantages of quality control?

Answer 13

· It stops faulty products reaching customers
· An external inspector is better placed to find problems in a business
· Inspectors are specially trained

Question 14

What are the disadvantages of quality control?

Answer 14

· Workers are not as encouraged to take responsibility
· High level of rejected products
· More waste, most costs, less profit and profitability

Question 15

What is quality assurance?

Answer 15

This is an approach that aims to achieve quality by organising every process to get the product ‘right first time’ and prevent mistakes ever happening. This is also known as a ‘zero defect’ approach.

Question 16

What 3 things does quality assurance focus on?

Answer 16

○ If the production process is well controlled, then the quality will be ‘built in’
○ If the production process is reliable, there is less need to inspect production output (quality control)
○ There is more emphasis on ‘self-checking’ by workers, than by inspectors.

Question 17

What are some advantages of quality assurance?

Answer 17

· It reduces cost at every stage as there is less wastage
· It is more profitable
· There are lower levels of variance with higher quality
· Workers feel more motivated and have more of a sense of ownership and responsibility - Herzberg theory of motivation

Question 18

What are 6 characteristics of quality assurance?

Answer 18

• Medium-Long term process
• Focuses on processes – how things are made/delivered
• Achieved by improving production processes
• Targeted at whole organisation
• Emphasises the customer
• Quality is built into the product

Question 19

What are 6 characteristics of quality control?

Answer 19

• Can be implemented at short notice
• Focus on outputs – work-in-progress and finished goods
• Achieved by sampling and checking (inspection)
• Targeted at production activities
• Emphasises required standards
• Defect products are inspected out

Question 20

What is T.Q.M?

Answer 20

Total quality management

Question 21

What is total quality management?

Answer 21

A form of Quality Assurance - A management philosophy committed to a focus on continuous improvements of product and services with the involvement of the entire workforce

Question 22

What is the aim of TQM?

Answer 22

maintaining quality throughout the organisation and to stop problems before they occur, rather than finding them after they occur

Question 23

What are 6 features of TQM?

Answer 23

· Takes into account customers’ views when planning the production process
· Quality Chains
· Company wide quality policy
· Everyone involved and ‘pride in the job’
· Stresses role of the responsibility and aims to make workers accountable
· Audits to check quality

Question 24

What is S.P.C?

Answer 24

Statistical Process Control

Question 25

What does SPC involve?

Answer 25

Collecting of data relating to the performance of a process – diagrams, charts, and graphs - the aim may be to reduce variance.

Question 26

What are 3 ways SPC is achieved?

Answer 26

· Teamwork, a way of solving problems (sharing of information)
· A general policy of ‘zero defects’
· Quality circles

Question 27

What are ‘quality circles’ in SPC?

Answer 27

Small groups of staff, usually from same work area, who meet on a regular and voluntary basis – attempt to solve problems and make suggestions – pay and conditions are normally excluded/ Team will present ideas to management – also involved in implementing and monitoring the effectiveness of solutions.

Question 28

What are 6 advantages of using TQM?

Answer 28

• Focuses on needs of customers and relationships between suppliers and customers
• Achieve quality in all aspects of the business, not just product/service quality
• Aim to remove waste and inefficiencies
• Find improvements and develop measures of performance
• Develop team ethos to problem solving
• Continually review to develop a strategy of continuous improvement

Question 29

What are 6 disadvantages of TQM?

Answer 29

• Training and development costs of new system
• Only works if commitment from whole business
• Bureaucratic – docs and regular audits – difficult for small firms?
• Stress is placed on process not product
• Requires strong leadership
• Disruption and costs may outweigh benefits

Question 30

What is Kaizen?

Answer 30

Japanese for ‘continuous improvement’. Every aspect of life is improved and everyone in the business is involved. An important part of lean production.

Question 31

What are the principles of kaizen?

Answer 31

• Time wasted either before starting tasks or walking unnecessarily
• Irregular use of a machine
• Checking there aren’t excessive demands upon machines and workers

Question 32

What is the key element of kaizen?

Answer 32

Eliminating waste and continuously improving