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
