Booklet 6 : Quality Management / Approaches and Measures to Quality

Question 1

What is quality? (2)

Answer 1

The standard that meets the expectations of the customers, the product needs to satisfy the customers wants and needs (2)

Question 2

Give two advantages of successful quality management (2)

Answer 2

1. Competitive advantage - enables a business to provide high-quality premium products or services to charge at premium prices and add value
2. Reliability - a business needs to produce products that meet the customer’s requirements, this can earn a good reputation with customers

Question 3

How is quality measured? (2)

Answer 3

It is measured through the amount of sales and number of complaints which show the satisfactory production of the product (2)

Question 4

State three advantages and three disadvantages of quality policy (6)

Answer 4

Advantages
1. Gives the product a USP - this allows for premium pricing
2. Greater customer loyalty - consumers may be impressed by the quality and repeatedly buy the product
3. Improves brand image - outstanding quality results in little complaints and a good reputation for the business

Disadvantages
1. Time consuming and costly - takes time and money to ensure all stakeholders are aware of the quality
2. Demotivated workforce - quality expectations may put pressure on staff leading to them lacking motivation
3. Business has to continue to meet this standard - if they don’t meet the standard they may receive bad reviews and customer complaints

Question 5

Define TQM (Total Quality Management) and state three advantages and disadvantages of this method? (8)

Answer 5

TQM is a method that requires commitment from all areas across the business, management must consider how quality is produced at all stages of production (2)

Advantages
1. Ensures the organisation-wide participation in quality activities
2. Helps a firm show quality in all aspects of the business - this allows them to understand how to exceed expectations for consumers needs
3. Helps increase staff morale - it develops a team approach which reduced the cost of hiring and training new employees

Disadvantages
1. Can be expensive to implement and time-consuming
2. Difficult for small businesses - smaller firms have a lack of expertise and resources
3. TQM will only work if everyone is committed

Question 6

Define quality assurance and state three advantages and disadvantages of it (8)

Answer 6

Quality assurance is making sure all products are produced properly to the correct standard to make sure no faults happen in the first place (2)

Advantages
1. Costs are reduced - if the product is checked at every stage it doesn’t need to be reworked if faulty
2. It can improve worker motivation - workers will have more ownership and recognition of their work
3. Gaining a reputation for good quality - let’s the business add value and improves customer loyalty

Disadvantages
1. It is costly and time-consuming
2. Workers may not be concerned about quality as it does not benefit them in any way
3. Customers may over-estimate the level of quality actually provided

Question 7

Define quality control and state three advantages and three disadvantages of this (8)

Answer 7

Quality control is based on the inspection of the product or service, a quality inspector will ensure the output meets the minimum acceptable quality (2)

Advantages
1. It should reduce the chance of faulty products
2. It helps identify aspects of production that don’t meet the requirements
3. Reduces negative publicity - no products should reach the customer and have to be recalled

Disadvantages
1. No guarantee the customers receive the product of their best quality
2. Workers may become detached from the production process as they are not responsible for assessing their own work which decreases motivation
3. If products are rejected at the end of the cycle, it can be costly for them to be reworked

Question 8

Define ISO 9000, and state three advantages and three disadvantages (8)

Answer 8

ISO 9000 is a system that ensures the firm sets quality standards and then monitors their performance to the actual standards (2)

Advantages
1. It provides thoughtful consideration of all business processes
2. It indicates to consumers that the products are of a high and consistent quality
3. Should save money and have less returns of faulty products

Disadvantages
1. Can be expensive and time-consuming to achieve in terms of paperwork
2. Involves considerable target setting and quantitative analysis so can be demotivating
3. May slow production process as more procedures are followed and analysed