4.7: Product Development and Quality Management

Question 1

Describe the purpose of production management systems

Answer 1

• production management systems deal with converting raw materials into finished goods or products
• this is done by deciding on the inputs, outputs, processes and controls that need to take place in order to ensure a product or service is created in line with the
  specifications, within the quantity and by the schedule demanded and at a minimum cost to the business

Question 2

Explain the features of product development

Answer 2

( how )
- product development outlines the stages from when a product/service is conceived as a raw idea to when it is finally brought to market
- the elements of the product development is usually outlined in a series of sequenced events which typically include: ideation, research and development, prototyping, testing and commercialisation
( why )
- the objective of product development is to cultivate, maintain and increase a business’s market share by satisfying a consumer demand
- by selling new products to meet consumer needs, a business will increase its brand loyalty and sustain its competitive advantage

Question 3

Identify three features of quality assurance

Answer 3

• is the proactive process of guaranteeing a product’s quality to the consumers while the product is being developed
• informs customers that products have been manufactured to a quality standard promised
• involves checking and reviewing the production process
• focuses on preventing poor quality products as opposed to correcting problems
• can result in a reduction of production costs, less waste and reworking of products

Question 4

Identify three features of quality control

Answer 4

• the reactive activities or techniques used to achieve and maintain the products’ qualityafter the product is developed and before it’s released
• It involves inspections, testing and monitoring being in place to examine whether the product meets required specifications and standards set by the firm, before it reaches customers
• identifying and correcting quality problems through tools & equipment so that customer’s requirements are continually met
• is more about detecting problems after they occur

Question 5

Identify three features of quality improvement

Answer 5

• the reactive activities or techniques used to improve the products’ qualityafter the product is developed and after it’s released (plan, do, check, act)
• is the systematic approach to reduction or elimination of waste, rework, and minimisation of losses in the production process
• refers to the continuous improvement process focused on processes and systems
• involves to the analysis of business performance and business efforts to improve performance
• setting goals for improvements and implementing strategies to achieve them

Question 6

Discuss how a business can manage the quality of its operations

Answer 6

• control of quality may involve quality assurance (QA), quality improvement (QI) and quality control (QC)
• QA refers to a set of activities designed to make sure the development and maintenance process is adequate so that a system can meet its objectives, for example, a business could use QA to prevent defects throughout the production process
• QI refers to the effort taken to increase efficiency, actions and procedures, with the purpose of achieving additional benefits for the business and its users, for example, a business could use Total Quality Management (TQM) to improve its production process
• QC refers to the process of checking and reviewing processes at the end to determine if the requirements of the business are being met, for example, it ensures that the final product meets a defined set of quality criteria and meets the requirements of a business’ customers
• maintenance of quality is essential for a business to maintain its brand. A brand is often associated with a particular level of quality and any lowering of quality or perception of quality would result in a loss of consumer confidence in the brand
  resulting in a decline in sales and profits.