Quality

Question 1

What is quality?

Answer 1

The process issue of PRODUCT QUALITY deals with making sure that the products produced do what consumers expect and are reliable (relative to the price they are sold for)

Question 2

What does quality deal with?

Answer 2

Making sure goods are up to suitable standards

Question 3

How can a business ensure quality?

Answer 3

by using quality inputs/methods such as: raw materials, employees, technology, quality control, and quality assurance

Question 4

what is the raw materials quality input/method?

Answer 4

a business should spend time finding a supplier that can consistently provide a high quality of raw materials. However, a supplier will charge a higher price for high quality materials

Question 5

describe the employees quality input/method.

Answer 5

a companys workers must have the correct level of skills and knowledge to make a product to a high standard

Question 6

what does staff training ensure for a business?

Answer 6

it ensures that the staff are adequately skilled

Question 7

what should a business have when recruiting employees?

Answer 7

a good, rigorous selection process to ensure it is employing the best people to do the job

Question 8

what is the downside to highering skilled workers?

Answer 8

they often expect a higher rate of pay

Question 9

what is the downside to highering non-skilled workers?

Answer 9

it is time consuming to train them

Question 10

what is the technology quality input/method?

Answer 10

it is when the machinery and technology used in the production of a companys products should be well maintained to ensure it is correctly functioning

Question 11

how might a business strive to keep machinery up to date?

Answer 11

by investing in the latest technology

Question 12

what is the downside to purchasing new technology?

Answer 12

it is expensive

Question 13

describe the quality control quality input/method.

Answer 13

it involves 2 types of quality inspections:
-the first involves a sample of the raw materials being checked before production to ensure that they are of the required standard.
-the second inspection happens at the end of production when the finished good is inspected to ensure that it meets all the required quality standards

Question 14

what are the pros and cons of the quality control quality input/method do?

Answer 14

pro-reduces the chance of a faulty or substandard product reaching customers.
con-it is likely to result in high amounts of waste as faults in the product are not usually detected until the very end of production.

Question 15

describe the quality assurance quality input/method.

Answer 15

it is when the quality of a product is checked at every stage of production, a product cannot continue along the production line unless it meets the standards required at each stage

Question 16

what are some benefits of introducing quality into a firm?

Answer 16

-the firm is able to charge a high price and so maximise profits
-the firm gets a good reputation for producing quality products which allow the firm to raise the price,
-it is easier to build up customer loyalty to quality products,
-mistakes are minimised which saves the firm money on getting rid of wastage,

Question 17

what are some downsides of introducing quality into a firm?

Answer 17

-expensive training to get workers familiar with systems such as JIT,
-costs a lot to design the system, installing checks of production lines
-better raw materials may cost extra,
-extra paperwork required to validate quality checks.

Question 18

what are the pros and cons of the quality assurance quality input/method?

Answer 18

pro-results in very little wastage as faults are identified and fixed quickly.
con-inspecting the product at every stage can result in production taking longer.

Question 19

what are the factors to consider when deciding which method of production to use?

Answer 19

-price
-size of premises
-availability of skilled labour
-nature of the product
-demand for the product

Question 20

describe the price factor for choosing a method of production:

Answer 20

if the firm wants to charge a high price for their product they are likely to consider the job and batch production methods as the firm will be able to tailor the product to the customer’s needs.

Question 21

describe the size of premises factor for choosing a method of production:

Answer 21

how much space the business has available must be considered as production systems for batch and flow production require a lot of space

Question 22

describe the availability of skilled labour factor for choosing a method of production:

Answer 22

the business will have to establish whether there is sufficient skilled labour available to allow it to use job production if it seems appropriate, if not then batch or flow production will have to be considered

Question 23

describe the nature of the product factor for choosing a method of production:

Answer 23

depending on what is being made one method may be more suitable than others, e.g. if a special, bespoke product is required, job production will be used

Question 24

describe the demand for the product factor for choosing a method of production:

Answer 24

the business will have to choose a method which will allow it to make enough products to fulfill customer demands

Question 25

what is ethical and environmental production?

Answer 25

the ethical and environmental production process ensures that the production process is fair and minimises negative impacts

Question 26

what can business ethics be defined as?

Answer 26

the moral values that influence how an organisation behaves

Question 27

why is it important that businesses are ethical?

Answer 27

because consumers expect businesses to do what is fair, honest and right

Question 28

what are some examples of ethical operations?

Answer 28

-paying employees a living wage which exceeds minimum wage rates,
-not using child labour or sweatshops in the production of goods,
-ensuring high farming standards,
-avoiding testing products on animals,
-supporting initiatives, e.g. fairtrade, by choosing appropriate suppliers

Question 29

what are the advantages of ethical operations?

Answer 29

-improved reputation and image,
-higher prices can often be charged for products which are viewed as ethical,
-gaining a competitive edge over rivals.

Question 30

what are the disadvantages of ethical operations?

Answer 30

-often more costly, meaning increased production costs,
-less profit will be made due to increased production costs.

Question 31

what are some environmentally friendly practices a business should consider following?

Answer 31

-reducing the amount of packaging used for their products,
-minimising the amount of waste created and disposing of it in a safe responsible manner,
-recycling as much as possible and making products and packaging recyclable where possible,
-using renewable energy sources, such as wind and solar energy, to reduce their energy consumption.

Question 32

what are the advantages of environmental operations?

Answer 32

-recycling more and cutting down on packaging can reduce production costs,
-winning awards for being environmentally friendly can be used as a marketing tool,
-higher sales and profits as customers are attracted to companies that help the environment,

Question 33

what are the disadvantages of environmental operations?

Answer 33

-recycling of materials can be a time consuming process.
-consumers might percieve the quality of products to be inferior if recycled products are used

Question 34

what are some examples of technology used in businesses?

Answer 34

-EPOS (electronic point of sale)
-databases
-Computer-aided manufacturing (CAM)
-Computer-aided design (CAD)
-Internet
-Global positioning system (GPS)

Question 35

what are EPOS systems used for in businesses?

Answer 35

they are used to:
-scan barcodes on materials and products,
-keep track of inventory levels in real time as inventory is added or removed,
-automatically place orders with suppliers when inventory reaches the re-order level.

Question 36

what are databases used for in a business?

Answer 36

to keep record of all the suppliers that a company uses, and to keep track of customers details

Question 37

what is computer aided manufacturing?

Answer 37

when computers control the operation of a machines. the computer will give the machine instructions and the machine will d exactly what the computer says

Question 38

what is computer aided design used for in a business?

Answer 38

to allow an operations department to design and create digital models of a product to see how it would look and to test its functionality without having to make prototypes

Question 39

what is internet used for in a business?

Answer 39

to find and compare possible suppliers to purchase raw materials from, and to place orders using the supplier’s website

Question 40

what is GPS used for in a business?

Answer 40

to track deliveries from suppliers and to track a company’s own delivery vehicles as they deliver orders to the customers