2.4.4 Quality Management

Question 1

Quality

Answer 1

The ability of a product/service to meet a customers expectations for that product/service

Question 2

What two things have caused businesses to improve the quality of their products?

Answer 2

Legislation & Competition

Question 3

Why is quality important?

Answer 3

Because the quality has to be to a good standard to ensure you meet the minimum legal requirements relating to selling goods/services

Question 4

What are two main reasons why quality is important?

Answer 4

1) -Ethical objectives-you’d want to provide customers with a high standard
2) -Quality effects costs

Question 5

What’s the link between quality and costs?

Answer 5

Making poor quality products damages the efficiency of the business which has a direct impact to the costs.Having poor quality products means mistakes and many defaults have been made.This effects the levels of output that is being produced.This is because you need to use more resources in order to achieve high levels of output-Resources include raw materials, time of employees who have been paid, Machinery that is being run for not good use all for a product that isn’t good enough to sell.This makes the production process more costly.As a result the business may need to charge higher prices in order to cover the costs that was wasted due to poor quality.

Question 6

What is a consequence of poor quality products?

Answer 6

It damages competitiveness as a business would have to charge higher prices in order to cover costs that was wasted due to poor quality.

Question 7

Quality helps a business remain competitive in terms to two ways what are they?

Answer 7

1) -Pricing

2) - More satisfied customers

Question 8

If the quality of your product is poor what will customers tend to do?

Answer 8

Find a substitute that will most likely be your rival

Question 9

What does poor quality products effect?

Answer 9

1) -Sales volume
2) -Market Share
3) -Economies of Scale

Question 10

Customers will do what if product quality is good?

Answer 10

Customers will give good word in mouth publicity if satisfied with quality.This will enhance brand image.

Question 11

What will customers do if product quality is bad?

Answer 11

Most likely find a substitute and discuss negatively about your product to others.This damages brand image.

Question 12

In manufacturing who has been traditionally responsible for ensuring quality?

Answer 12

Production departments

Question 13

What would be the objectives of production departments relating to the quality of their products?

Answer 13

1) -Satisfied consumer needs
2) -Worked under conditions they were likely to face
3) -Could be produced cost-effectively
4) -Operated in the way they should
5) -Could be repaired easily
6) -Conformed to the safety standards set by legislations

Question 14

What are 3 ways to assure that quality is good?

Answer 14

1) -Quality assurance
2) -Quality control processes
3) -Total Quality Management (TQM)

Question 15

Quality Assurance

Answer 15

Measures a business introduces in order to prevent defects from happening.It takes into account customer wants when standardising quality and often involves guaranteeing that quality standards are met.

Question 16

Quality circles

Answer 16

Groups of workers meeting regularly to solve problems and discuss work issues.

Question 17

Quality control processes

Answer 17

Processes which spot mistakes and defects and take them out so they aren’t sent out to customers

Question 18

Total Quality Management (TQM)

Answer 18

A managerial approach that focuses on quality and aims to improve the effectiveness, flexibility and competitiveness of the business.It’s a zero defect approach that makes every employee for the quality they produce.

Question 19

What is meant by internal customers?

Answer 19

Internal customers are the employees within the business who look at the product quality.If those employees are not satisfied with the product quality received then they can return it to the previous person to rectify their mistakes.

Question 20

How does TQM process work?

Answer 20

Every employee involved in a TQM process are trained so they make fewer errors and can detect mistakes early.Those employees are also made responsible for checking quality as it goes through the production process.

Question 21

Quality is ingrained in what?

Answer 21

A business’s culture

Question 22

Employees involved in TQM are empowered to highlight what?

Answer 22

Highlights mistake

Question 23

TQM makes every employee what?

Answer 23

Internal clients

Question 24

Benefits of TQM

Answer 24

1) -Elimination of defects and waste
2) -Reduced costs and better costs management
3) -Added value
4) -Enhanced brand image
5) -Improved Morale-Employees involved in success of quality-satisfied-less likely to leave
6) -Customer satisfaction
7) -Increase in productivity -Employees spend less time on chasing down errors as they are spotted early on-so less focus spent on rectifying and more on producing products

Question 25

Why don’t all businesses use TQM?

Answer 25

1) Initial costs of TQM may be high e.g have to train employees to spot mistakes + train to make them confident in spotting those mistakes
2) -Staff may command higher pay
3) -Managers may not feel confident as they may have never used TQM before
4) -Quality may not be a goal for a firm instead e.g lower prices may be instead.

Question 26

What is Kaizen?

Answer 26

A Japanese approach of constantly introducing small incremental changes in a business in order to continuously improve quality/ efficiency

Question 27

5 benefits of Kaizen

Answer 27

1) -Improved teamwork -Kaizen team solves problems together developing a bond/team spirit (improves cross functional collaboration)
2) -Builds leadership skills-Everybody encouraged to be involved as they have opportunity to present their ideas
3) -Improves efficiency-Boosts the quality of products/services
4) -Improved employee satisfaction-Involved in implementing changes for improvements
5) -Waste reduction-Kaizen identifies and then tries to minimise wastes incurred in business production-saves costs

Question 28

2 disadvantages of Kaizen

Answer 28

1) -Change is difficult-People aren’t always reluctant to change and may resist
2) -Training - Staff/Management must be trained to understand and adopt philosophy
3) -Takes a long period of time to embed the culture of kaizen so can’t expect to see improvements quickly
4) -Can encourage managers to micro-manage
5) Costs of setting up Kaizen can be expensive???