3.4.4 operational decisions to improve performance: improving quality Flashcards
quality
the ability of a product or service to meet customers’ expectations
quality can be expressed in a number of ways such as:
-aesthetics (physical appearance)
-features (physical abilities)
-core aspects (basic abilities/functions)
-actual aspects (added extras/functions)
-augmented aspects (support feature e.g warranty)
-performance (reliability, durability)
-intangible aspects (non physical, e.g brand name, reputation)
quality when providing a service
-friendliness of staff
-speed of service
-efficiency of service
-staff knowledge
-cleanliness of facilities
-appearance of environment
benefits of quality
- lower unit costs
-less waste
-positive image to customer
-reputation, word of mouth
-USP meets wants and needs better, charge higher price=ped inelastic
-improved competitiveness- competitive advantage=lower price, higher margins, lower costs, loyal customers
methods of improving quality
*training and motivating employees, financial and non financial (on job training=mentoring, expensive) (off job training= apprenticeships, college/specialist providers)
*understanding customers expectations
*technology, automation, robotics
*working closely with suppliers-they prioritise you for better quality, know your expectations, modify your product.
*quality systems; quality control & quality assurance
QUALITY CONTROL
checking a good or service before it is delivered to consumer (ie at end of process)
-normally relies on an inspection process
advantages of quality control
-quality can be monitored
-should stop faulty products reaching customer
-common problems can be identified
-inspector takes responsibility
-often a robust system (strong, healthy)
disadvantages of quality control
-takes responsibility away from operatives
-requires specialist/additional personnel (expensive)
-problems only identified at end of process (costs)
-waste levels may be high
QUALITY ASSURANCE
checking of a product/ service at each stage of its production.
-relies upon self checking, each operative checks their stage of the process or component before passing it along.
-business will often strive for quality assurance through adoption of a system (set down a clear process to be followed, most frequently adopted system is total quality management, many businesses will seek to achieve accreditation for their quality assurance standards)
advantages of quality assurance
-spots early faults, saves waste of resources at next stage in production process.
-motivates workers responsible for ensuring quality standards are met
-aims to achieve an objective of zero defects
-ensures clear systems in place
-enhances reputation of business as less chance of faulty goods reaching customer
disadvantages of quality assurance
-requires staff training, high levels of staff commitment (costs)
-can slow down production process and labour productivity which increases unit costs
-may demotivate workers who feel under pressure
-opportunity cost of managers time when initially implementing systems and procedures.
TOTAL QUALITY MANAGEMENT (TQM)
-it sees quality as the responsibility of ALL employees.
-each employee is a link in the chain and treats the next link as if they were an external customer
-they will pass product only if it is correct
-philosophy of get it right first time.
benefits of improving quality
- achieve operational objectives
- gain a competitive advantage
- reduce unit costs
- enhance reputation
- motivated workforce striving to achieve common goals
difficulties of improving quality
*reluctance from employees to adapt to change or take on additional responsibilities
* requires finance to invest in training and test and implement new systems
* reliant on good relationships with resource providers, including suppliers
* once achieved must be monitored and reviewed regularly to ensure standards are being maintained.
consequences of poor quality
-lower profit margins=lower added value
-demotivated staff from less sales
-costs of reworking faulty goods
-increase training budgets (staff)
-poor word of mouth from customers
-bad reviews (bad publicity via PR)
-loss of customer loyalty
-lowered prices to match demand
-damaged reputation
3.4.5 outsourcing
the practise of using the services of other organisations to complete all of the parts of the manufacturing process (short term strategy of matching supply to demand)
value of outsourcing
-provides flexibility in supply
-can increase capacity without high capital expenditure.
-can buy in expertise
however…
-quality must be maintained
-sub contractor will also want to be making a profit (profit margins reduced).
