3.4.4 Making operational decisions to improve performance: improving quality. Flashcards

1
Q

What are the tangible measures of quality?

A

Appearance.

Reliability.

Durability.

Functions.

After-sales service (cost, promptness and effectiveness).

Repair and maintenance
needs.

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2
Q

What are the intangible measures of quality?

A

Brand image.

Reputation.

Exclusiveness.

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3
Q

What are five possible quality objectives?

A

Customer satisfaction ratings.

Customer complaints.

Level of product returns.

Scrap rate.

Punctuality.

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4
Q

What are the benefits of quality to a business.

A

Competitive advantage.

Impact on sales volume.

Unique selling point.

Impact of selling price.

Pricing flexibility (good reputation).

Cost reductions.

Brand loyalty & firm reputation.

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5
Q

Define a quality system.

A

An approach used by an organisation to achieve quality. Either classified by quality control or quality assurance.

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6
Q

Define quality control.

A

A system that uses inspection as a way of finding any faults in the good or service being provided.

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7
Q

Outline the methods of improving quality.

A

Quality Control.

Quality Assurance.

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8
Q

Outline quality control:

A

Quality inspectors are employed to check the accuracy of completed work and the quality of supplied goods.

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9
Q

What are the benefits of inspection?

A

Prevent the defective product from reaching the customer.
More secure system.
Common problems was be resolved effectively.

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10
Q

Outline the drawbacks of inspection.

A

Employees are not encouraged to improve the quality of their product.

Can be viewed as unnecessary if products are “right first time”.

Worker responsibility motivates them.

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11
Q

Define Quality assurance.

A

A system that aims to achieve or improve quality by organising every process to get the product “right first time” and prevent mistakes ever happening.

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12
Q

Outline the benefits of quality assurance.

A

Responsibility rests on the workers - greater motivation (Herzberg).

Reduced costs - faults caught at the initial stages.

Higher more consistent level of quality.

Workers likely to reject defective partially completed products on the line - more involvement.

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13
Q

Outline the systems of quality assurance.

A

Total quality management (quality chains).

Kaizen.

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14
Q

Define Total quality management.

A

Quality chains in which people treat the receivers of their work as if they were external customers and adopt a target of ‘right first time’.

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15
Q

Define Kaizen.

A

A policy of implementing small, incremental changes in order or achieve better quality and/or efficiency.

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16
Q

What are the benefits of improving quality?

A

Competitive advantage.

Increasing sales volume.

Unique Selling point.

More scope to increase
selling price.

Greater opportunities for
pricing flexibility.

Cost reductions.

Brand loyalty.

Enhancement of reputation.

17
Q

Outline the difficulties of improving quality.

A

Difficult to convince others of problem.

Difficulty agreeing on the best solution.

Quality give greater responsibility for staff - changes in working.

Resistance to change.

Time consuming.

Keeping pace with customers reviews on quality may be difficult.

18
Q

Outline the main costs of improving quality.

A

Training.

Developing quality systems.

Introducing/updating information systems.

Testing the quality of inputs before the production line.

Inspection staff.

Installing equipment for quality testing.

19
Q

Outline the consequences of poor quality.

A

Reputation.

Lower sales volume.

Lower price.

Lower price.

Waste/less productive use of assets.

20
Q

Outline the increase costs that comes with poor quality.

A

Scrappage.

Replacing materials.

Wages of staff reworking products.

loss of reputation/goodwill.