Chapter 7 : Quality of performance 💚 Flashcards
The differences between QUALITY CONTROL and QUALITY ASSURANCE
Quality control
• System that ensures the desired quality is met by inspecting the final product.
• Ensures that finished products meet the required standards.
Quality assurance
• Checks quality is carried out during and after the production process.
• Ensures that required standards have been met at every stage of the process.
The differences between QUALITY MANAGEMENT and QUALITY PERFORMANCE
Quality management
• Techniques/tools/methods used to design/improve the quality of a product.
• Can be used for accountability within each of the business functions.
Quality performance
• The total performance of each department is measured against the specified standards.
• Can be obtained if all departments work together the same quality standards
The advantages/benefits of a good quality management system
• Increased market share/more customers improve profitability.
• Improves business image as there are fewer defects/returns.
• Improves the financial sustainability of the business as customers are retail
• Enhances the ability of the business to achieve its vision/mission/goals.
Quality of performance/Quality indicators of
each business function
-General management
-Production function
General management function
• Develop/Implement/Monitor/Maintain effective strategic plans.
• Effectively communicate a shared vision, mission, and values.
• Set direction and establish priorities for their business.
• Ensure that all departments/the business meets their deadlines/achieve goals
Production function
• The production manager should provide/ensure high-quality products/services
according to specifications.
• Products meet customers’ requirements by being safe/reliable/durable.
• Monitor processes and find/determine the root causes of production problem
Quality of performance/Quality indicators of
each business function
-Purchasing function
-Marketing function
Purchasing function
• Buying raw materials in bulk at lower prices.
• Ensures required quantities are delivered at the right time and place.
• Selecting reliable suppliers that render the best quality raw materials/capital goods at reasonable prices.
• Placing orders timeously and ensuring regular follow-ups so that goods are delivered on time.
Marketing function
• Gain customers’ loyalty by satisfying/meeting/exceeding their needs/wants/building
positive relationships.
• Adhere to ethical advertising practices when promoting products/services.
• Use different pricing techniques such as promotional/penetration pricing,
to ensure a competitive advantage.
• Use aggressive advertising campaigns to sustain the market share.
Quality of performance/Quality indicators of
each business function
-Financial function
-Public relations
Financial function
• Analyse/Apply/Devise/Implement strategies to increase profitability.
• Obtain/Acquire capital from the most suitable/available/reliable sources.
• Update financial records regularly to ensure timely/accurate tax payments.
• Implement financial control measures/systems/processes to prevent fraud.
Public relations function
• Provide regular/positive press releases.
• Implement sustainable Corporate Social Investment (CSI) programmes.
• Provide good results of/Positive feedback from public surveys on the business image.
Quality of performance/Quality indicators of
each business function
-Administrative function
-Human resources function
Administrative function
• Fast and reliable data capturing and processing systems.
• Use modern/updated technology efficiently/effectively.
• All documentation is kept neatly and orderly in a safe place.
• Easy to recall/find information/documentatio
Human resources function
• Fair remuneration packages aligned to the industry.
• Offer performance incentives for staff to enhance productivity.
• Sound/positive relationships with employees improve employee morale.
• Low staff turnover/low employee attrition rates in the busine
Total Quality Management (TQM)
What is the meaning of TQM
• TQM is an integrated system/methodology/process applied throughout an organisation. It enables businesses to design/produce/provide quality products/services for customers
Management ensures that each employee is responsible/accountable for the quality of his/her work/actions
The impact of the TQM elements on large
businesses (advantages and disadvantages)
-Continuous skills development/Education and training
-Continuous improvement to processes and systems
Continuous skills development/Education and training
• Large businesses have a human resources department dedicated to skills training and development.
• Ability to afford specialised/skilled employees.
• Poor communication systems in large businesses may prevent effective training from taking place
•Trained employees may leave for better jobs after they have gained more skills
Continuous improvement to processes and systems
• Large businesses have a person/department dedicated to the improvement of processes and systems.
• They can afford to use the services of the quality circles to stay ahead of their competitors.
• Quality control can become complicated with large-scale manufacturing processes.
• Risk of changing parts of the business that are working well.
The impact of the TQM elements on large
businesses (advantages and disadvantages)
- Adequate financing and capacity
- Monitoring and evaluation of quality processes
Adequate financing and capacity
• Able to afford product research/market researchers to gather information.
• Can afford to purchase quality raw materials and equipment
• They can afford to have systems in place to prevent errors in processes/defects in raw materials/products
• Financial capital is wasted when incorrect financial planning/budgeting/ineffective financial management processes exist
Monitoring and evaluation of quality processes
• Improve performance and increase productivity/sales/profitability.
• Modify interventions that may improve the efficient use of resources.
• Large businesses are often divided and the departments work in silos.
• It is not viable/possible to check the quality of all the products.
The impact of the TQM elements on large
businesses (advantages and disadvantages)
Total client/customer satisfaction
• Continuously promote/foster a positive business image.
• Large businesses may be able to gain access to the global market.
• May lead to higher customer retention/loyalty and businesses may be able to charge
higher prices
• Not all employees may be involved/committed to total client satisfaction
Application of PDCA model/Steps to improve
the quality of products
Plan
• The business should identify the problem and develop a plan for improvement to processes and systems.
• Answer questions such as ‘What to do’/‘How to do it’.
Do
• The business should implement the change on a small scale.
• Implement the processes and systems as planned.
Check/ Analyse
• Use data to analyse the results of change.
• Determine whether it made a difference and what needs to be improved.
Act
• Implement the improvement to meet the needs of the business.
• Devise strategies on how to continually improve.
The role/importance of quality circles as part of continuous improvement to processes and systems
• Solve problems related to quality and implement improvements.
• Investigate/identify problems and suggest management solutions.
• Reduce costs of redundancy in the long run.
• Discuss ways of improving the quality of work/workmanship.
The impact of TQM if poorly implemented by businesses
• Setting unrealistic deadlines that may not be achieved.
• The decline in productivity, because of stoppages/delays.
• The reputation of the business may suffer because of faulty products.
• Bad publicity due to poor quality products supplied.
• High staff turnover because of poor skills development/training.
Ways in which TQM can reduce the cost of quality
• Schedule activities to eliminate duplication of tasks.
• Share responsibility for quality output amongst management and workers
• Work closely with suppliers to improve the quality of raw materials/inputs.
• Develop work systems that empower employees to find new ways of improving quality.
