Business Operations Flashcards
Quality of Performance
Quality
Quality refers to a good/service’s ability to satisfy a specific need.
The efficiency of services and the ability to provide an effective outcome without too many delays.
Quality Control
A system that ensures the desired quality is met by inspecting the final product to ensure that it meets the required standards.
Includes setting targets/ measuring performance and taking corrective measures.
Quality Assurance
Checks carried out during and after the production process.
Ensures that required standards have been met at every step of the process.
Quality Management
Refers to techniques/ tools used to design/ improve the quality of a product.
Can be used for accountability within each of the business function.
Quality Performance
Total performance of each department measure against its specific standards.
Can be obtained if all departments work together towards the same quality standards.
Quality Management Systems
A quality management system (QMS) is a system that documents processes, procedures, and responsibilities for achieving quality policies and objectives.
Quality Control vs. Quality Assurance
Quality Control is the inspection of the final product to ensure that it meets the required standards whereas Quality Assurance is the inspections that are carried out during and after the production process.
Quality Control includes setting targets/ measuring performance and taking corrective measures whereas Quality Assurance ensures that the required standards have been met at every stage of the process.
Quality Management vs. Quality Performance
Quality Management is the tools/ techniques used to design/ improve the quality of a product whereas Quality Performance is the total performance of each department measured against the specified standards.
Quality Management can be used for accountability within each of the business function whereas Quality Performance can be obtained if all section/ departments work together towards the same quality standards.
Benefits of a Good Quality Management System
Time and resources are used efficiently.
Vision/Mission/Business goals may be achieved.
Business has a competitive advantage over its competitors.
Increased market share/ more customers improve profitability.
General Management Function
Effectively communicate shared vision, mission and values.
Set direction and establish priorities for their business.
Develop/ implement/ Monitor effective strategic plans.
Ensure that all departments/ the business meet their deadlines/ targets.
Administration Function
Handle complaints quickly and effectively.
Use modern technology efficiently.
Easy to recall documentations.
All documents is kept neatly and orderly in a safe place.
Financial Function
Analyse strategies to increase profitability.
Implement debt collecting policies to monitor cash flows.
Accurately analyse and interpret financial documents.
Invest surplus funds to create sources of passive income.
Purchasing Function
Businesses should buy raw materials in bulk at lower prices.
Maintain stock control systems to ensure the security of stock.
Ensure that there is no break in production due to stock shortages.
Have a thorough understanding of supply chain management.
Production Function
utilise machines and equipment optimally.
Accurately calculate the production costs.
Businesses have a good after-sale services an warrantees.
Empower workers so that they can take pride in their workmanship.
Marketing Function
Identify competitive edge and conduct regular market research.
Differentiate products to increase the target market/ profitability.
Acquire a greater market share through good customer service.
Use pricing techniques to ensure a competitive advantage.
Public Relations Function
Providing regular/ positive press releases.
implementing sustainable CSI programmes.
Complying with recent legislation, e.g. BBBEE compliant.
Positive feedback from public surveys on business image.
Human Resource Function
Ensure fair and equitable selection process.
Fair remuneration packages that is aligned to the industry.
Good relationship with employees.
Low rate of staff turnover in the business.
What is TQM
TQM is an integrated system/ methodology applied throughout the organisation, which helps to design/ produce/ provide quality products/ services to customers.
It is a thought revolution in management, where the entire business is operated with customer orientation in all business activities.
Management ensures that each employee is responsible for the quality of his/her work/actions.
TQM takes steps to ensure the full involvement and co-operation of all employees in improving quality.
Continuous Skills Development/ Education and Training
The commitment of the business of the business to participate in the continuous skills development/ education and training of all employees at all levels within the business.
The correct/ effective training programmes must be provided to train employees for the correct application of the various TQM processes.
The business should conduct a skills audit to determine the qualifications/ experience/ competencies of the employees in their ability to influence the quality of products/ services.
Total Client/ Customer Satisfaction
The ability of the business to achieve total client/ customer satisfaction.
The business must strive to provide quality products/ services to meet/ exceed customer needs/ expectations.
Sound marketing research regarding current/ future customer needs is critical in attaining the TQM element.
Continuous Improvement to Processes and Systems
The ability of the business to achieve continuous improvement to processes and systems.
The business cannot become complacent with current practices and must constantly apply means to enhance/ improve existing processes and systems.
Businesses need to improve on their processes and systems such as the operating system/ service delivery system/ production system.
Adequate Financing and Capacity
The ability of the business to acquire adequate financing and capacity for all operational requirements in the pursuit of implementing TQM effectively.
The business needs to ensure that there is adequate financing and capacity available for all operations/ projects/ activities to meet TQM requirements.
To ensure that there is adequate financing and capacity, the business needs to apply sound financial management practices such as investing surplus funds/ budget correctly.
Monitoring and Evaluating Quality Processes
The effective implementation of TQM requires monitoring and evaluation of quality processes throughout the entire business.
The business needs to monitor and evaluate quality processes to determine/ enhance the strengths/ success and reduce/ remove weaknesses in achieving TQM.
This is a important aspect within TQM as it allows the business to enhance existing practices and ultimately improve the degree to which the business meets/ exceeds customer needs.
Positives of Continuous Skills Development/ Education and Training
Ability to afford specialised/ skilled employees.
May be able to hire qualified trainers to train employees on a regular basis.
