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A Level Business Theme 2 > 2.4.4 Quality Management COPY (improved) > Flashcards

2.4.4 Quality Management COPY (improved) Flashcards

1
Q

Quality

A
  • meets specifications firm set

- customer requirements = ‘fit for purpose’

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2
Q

How to meet quality ?

A
  1. find customer wants (MR)
  2. specify product does (advertising, packaging)
  3. specifications achieved
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3
Q

7 reasons quality important ?

A
  1. satisfaction
  2. growth opp = market share (revenue)
  3. waste = costs
  4. complaints = image & reputation
  5. competitive = differentiates
  6. premium prices = adding value
  7. reduce sensitivity to price
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4
Q

6 ways quality measured?

A
  1. recommendations/reviews
  2. returning customers
  3. exchanges/returns
  4. rate of stock turnover
  5. commission/tips
  6. reward schemes/loyalty cards
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5
Q

3 ways Service industry measuring quality

A
  1. customer satisfaction
  2. accurate billing
  3. speed of response
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6
Q

Manufacturing industry measuring quality

A

No of products with defects

Wastage

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7
Q

Approaches to quality management

A
  1. Quality control
  2. Quality assurance
  3. Quality circles
  4. TQM
  5. Kaizen
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8
Q

Quality control & 3 benefits

A
  • traditional, inspector, finished, meet standards
  • every product, sample each batch (random sample)
  1. meet required standards
  2. no defective leave
  3. little staff training
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9
Q

4 problems with quality control:

A
  1. inspector = expensive = poor quality built in
  2. mistakes = inevitable = wastage/cost
  3. employees don’t take care of work (responsibility)= not best quality
  4. faulty = slip through
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10
Q

Quality assurance & 4 benefits

A
  • production quality = customer requirements
  • throughout process
  1. self checking = empower
  2. zero defects
  3. customer reassurance (quality = pay more)
  4. quality system = each stage in production process
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11
Q

4 problems with quality assurance

A
  1. training
  2. tick boxes rather than care for customer experience
  3. no promise high quality
  4. encourage complacency (quality should be kept moving)
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12
Q

quality circles

A
  • small groups of workers
  • same area of production
  • regularly meet = study/solve production problems
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13
Q

Factors influencing success of quality circle/problems:

A
  1. mutual respect = positive industrial relations
  2. action/implementation
  3. democratic leadership
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14
Q

TQM

A

Total quality management

  • philosophy to quality = constant improvement
  • employees involved (contribute to product/service)
  • encourage intrapraneurship
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15
Q

Features of TQM

A
  • employees = equal importance (motivate=buy in)
  • quality from design to sales (whole organisation)
  • customers internal and external (part of organisation)
  • less productive as assessing quality
  • need to establish quality ‘culture system’ = centre of everything
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16
Q

May resist TQM because…

A
  1. lose control (authority to subordinate)
  2. exhausting (happy with what doing)
  3. necessary/believe
  4. additional training
17
Q

4 ways managers help implement TQM

A
  1. explain why necessary (communicate)
  2. provide training = supported
  3. rewards
  4. give it time
18
Q

4 benefits of TQM

A
  1. empowers/motivates staff
  2. competitive advantage (always best)
  3. rooted in company culture
  4. quality from design, manufacture and after sales service
19
Q

4 drawbacks of TQM

A
  1. everyone involved
  2. managers implement
  3. staff skeptical (lacks clear concrete programme)
  4. expensive = training
20
Q

Autocratic leader

A

like to keep control

21
Q

Kaizen & 2 advantages

A

LEAN

  • Japanese philosophy continuous improvement
  • constantly seek to improve performance
  • gradual, orderly & continuous improvement
  • ongoing improvement involving everyone
  1. easier to adapt
  2. team work
22
Q

the philosophy;

A
  • accepted by all
  • 1 workers = 2 jobs (do it & is it the best)
  • many small gradual changes = competitive adv effect
  • staff = best resource (based around people and ideas)
  • team working (cells and quality circle)
  • empowerment (speed of decision making)
  • performance targets
  • improving quality (MR, design product, plan process)
23
Q

BPR:

A

Business Process reengineering

  • redesigning key aspects of business from scratch
  • scrap existing systems
  • rethink/ clean slate
  • attract new bosses
  • ultimately = job loss

use:
- change product portfolio
- buying another business (change in ownership, technological change)

24
Q

Problems of implementing/limitations of Kaizen

A
  • culture= resist change (motivation)
  • training cost = change attitudes = expensive & takes time
  • justifying cost = opportunity cost of investment in time & training whilst = loss of output = hard to measure benefits
  • diminishing returns: impact improvement, gets less over time and staff enthusiasm decreases
  • radical solutions (not right for all situations, may need drastic action to survive)
  • time
25
Q

4 Factors to consider/influences on which quality system:

A
  1. nature of business/product
  2. scale of production system
  3. finance & time
  4. management style
26
Q

5 ways to gain competitive advantage through quality management

A
  1. differentiate against competitors (USP)
  2. point of promotion
  3. complaint/return = lower cost = competitive
  4. non-price strategy = don’t compete on price
  5. adds value = premium price = profit
27
Q

2 key elements to kaizen

A
  1. based on people and ideas (not new tech)

2. each change = little importance (lots = cumulative effects substantial)

28
Q

4 things good quality product will allow:

A
  1. repeat purchase = longer PLC
  2. build brand & marketing benefit spread from one brand to another
  3. premium price
  4. products easier to place (retailers stock good reputation)
29
Q

7 benefits of quality circles

A
  1. financial incentive = empowered/motivation/valued
  2. opinions valued & respected all mix
  3. membership voluntary
  4. doing job = better idea of improve process = known issues&better practices
  5. cost savings
  6. staff morale
  7. adv of knowledge of operations

A Level Business Theme 2 (25 decks)

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