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Business > Unit 4-Decision making to improve operational performance (4.4) > Flashcards

Unit 4-Decision making to improve operational performance (4.4) Flashcards

1
Q

What is quality all about?

A

Customer satisfaction

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2
Q

Why is quality important?

A

Affects customer’s perception of the business, therefore it can affect present and future sales.

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3
Q

What are the 2 ways through which businesses can ensure quality is achieved?

A
  1. Quality control systems
  2. Quality assurance systems
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4
Q

Define quality.

A

A measure of excellence which is free from defects or significant variations.

A product or service whose features consistently allow it to satisfy (or delight) customers

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5
Q

Is quality objective or subjective?

A

Subjective

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6
Q

Define subjective.

A

based on or influenced by personal feelings, tastes, or opinions.

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7
Q

Why is quality subjective?

A

It is a matter of personal opinion.

Can vary from one customer to another.

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8
Q

What does the quality of a product depend on?

A

Its ability to meet customer requirements consistently.

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9
Q

What does the quality of a product depend on?

A

Its ability to meet customer requirements consistently.

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10
Q

What will a products ability to meet customer requirements depend on?

A

How well the needs have been defined

How well firm has designed the manufacturing process

How well designed the product is

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11
Q

What are the 2 key features of quality?

A

Intangible
Tangible

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12
Q

What is intangible quality?

A

Not able to be touched or measured, and difficult to describe or explain.

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13
Q

Define tangible.

A

Something real; perceptible by touch

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14
Q

Give tangible quality examples.

A

Appearance
Reliability
Durability
Functions (added extras)
After-sales service
Repair and maintenance needs

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15
Q

Give intangible quality examples.

A

Image and brand
Reputation
Exclusiveness

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16
Q

Give a business example of intangible quality.

A

Brand name such as iPhone

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17
Q

Give a business who has a reputation for quality in all the tangible qualities.

A

VW-Volkswagen

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18
Q

List the first 4 benefits of quality.

A
  1. Impact on sales
  2. Creating a USP
  3. Impact on selling price
  4. Pricing flexibility
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19
Q

List the last 4 benefits of quality.

A
  1. Cost reductions
  2. Firm’s reputation
  3. Gaining a competitive advantage
  4. Brand loyalty
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20
Q

Why is quality beneficial to sales?

A

If products meet customer’s demands then demand should rise.

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21
Q

Why are USP’s benefits of quality?

A

They can increase demand.

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22
Q

How does quality benefit selling price?

A

USP means higher prices will be charged because of ‘perceived quality’.

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23
Q

What is perceived quality?

A

The quality that customers recognize via the look, touch and feel of a product.

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24
Q

Why does quality benefit pricing flexibility?

A

Can charge higher prices or have a range of products for different target customers enabling business to have a range of quality products.

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25
Q

How does quality benefit cost?

A

Less waste and therefore reduced costs.

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26
Q

How does quality influence a firm’s reputation?

A

Not having a quality system in place can damage reputation.

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27
Q

How does quality help a business gain a competitive advantage?

A

Occurs when products that have unique qualities that cannot be easily replicated by competitors.

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28
Q

How does quality benefit brand loyalty?

A

High quality will encourage stronger brand loyalty.

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29
Q

What are the 2 quality management systems?

A

Quality control
Quality assurance

30
Q

What are the issues with any quality system?

A

Costs
Training
Disruption to production

31
Q

Why are costs an issue with any quality system?

A

It is costly, especially admin costs.

32
Q

What are administrative/admin costs/expenses?

A

Indirect expense as they are related to operating and maintaining a business overall e.g., rent, utilities

Expenses that an organisation occurs which are not directly tied to a specific core function such as manufacturing, production or sales.

33
Q

Why is training an issue with any quality system?

A

The whole workforce may have to have a change of culture and training.

34
Q

Why is disruption to production an issue with any quality system?

A

Can cause major disruption when being implemented.

35
Q

Define quality control

A

A system that uses inspections to check the quality of work at stages of the manufacturing process

36
Q

3 pros of quality control.

A
  1. Quality checks at the end can stop faulty goods reaching customers​
  2. Inspectors can spot common problems and put them right​
  3. More secure system than one that trusts every individual to do his or her job properly
37
Q

3 cons of quality control.

A
  1. Does not encourage team responsibility​
  2. Expensive to operate​
  3. Responsibility rests with inspectors, therefore staff take no responsibility, which could reduce motivation
38
Q

Define quality assurance.

A

A system that improves quality by arranging every process to get products right first time

39
Q

4 pros of quality assurance.

A
  1. Workers take responsibility​
  2. Motivates workforce
  3. Reduced costs because of less waste​
  4. Greater consistency of quality products because responsibility is spread throughout workforce
40
Q

3 cons of quality assurance.

A
  1. Needs a change in the culture of the organisation
  2. Can take time to embed the system because of cultural change​
  3. Could increase costs in the short term
41
Q

How could improved quality influence price of products?

A

Higher prices can be charged; costs are reduced therefore high profit margin and lower unit cost

42
Q

How could quality influence the workforce?

A

Workforce is better motivated because producing quality product; appreciated; higher wages

43
Q

How could quality influence reputation?

A

Great marketing tool – if quality is there it helps to build and maintain brand image

44
Q

How does quality create resistance to economic conditions?

A

Quality businesses are bucking trend and still making money – possibly quality products are recognised and we will pay the prices.

45
Q

What is TQM?

A

Total quality management.

46
Q

Define TGM.

A

An approach to long-term success that aims for improvement continually throughout every functional area of a business.

47
Q

Is TQM short-term or long-term?

A

Long-term

48
Q

What could TQM transform if done correctly?

A

The organisation through changes in attitudes, practices, structures and systems

49
Q

Who does TQM involve?

A

All employees in a firm.

50
Q

What is the key for TQM?

A

‘Getting it right first time’

51
Q

How does TQM reduce costs?

A

Reduces wastage costs

52
Q

What does TQM allow for?

A

A consistent and flexible approach to quality.

53
Q

How does consistent quality in the TQM system affect price?

A

If products have a reputation for quality, then businesses can charge higher prices for them.

54
Q

List the quality assurance systems.

A

Kaizen
Total quality management (TQM)
Quality standards- BS5750 and ISO9001

55
Q

Define kaizen.

A

Japanese philosophy-A policy of implementing small, incremental changes in order to achieve better quality and greater efficiency

56
Q

Kaizen is a corporate culture. What does it encourage?

A

Employees to identify possible ways of improving the operations.

57
Q

What is corporate culture/company culture?

A

A set of beliefs and behaviours that guide how a company’s management and employees interact and handle external business transactions.

58
Q

Name some objectives/targets of Kaizen.

A

Improve productivity/quality
Faster product turnover
More rapid return on investment
Reduce waste
Eliminate unnecessary hard work
Improve the workplace

59
Q

What is product turnover?

A

A measurement for the speed a company sells the products or inventory it has on hand

60
Q

What are the quality standards?

A

This is a set of criteria used to establish quality systems which are accredited (British Standards and International Standards).

61
Q

What does achieving the quality standards mean for a business?

A

Business can gain marketing advantage

Customer assurance is guaranteed

62
Q

What are the 2 quality standards?

A

BS5750 (British Standards)

ISO9001 (International Standards-International Standard of Organisation)

63
Q

6 consequences of poor quality.

A
  1. Productivity problems
  2. Reduced profitability
  3. Low/No customer satisfaction
  4. Increased costs
  5. Negative reputation
  6. Lower sales volume
64
Q

What is quality assurance linked with in regards to employees and why?

A

Employee motivation because it gives employees responsibilities

65
Q

Where is quality checked in quality control and assurance?

A

Quality assurance = Everybody responsible for quality throughout the process

Quality control = Products quality checked at stages

66
Q

How does poor quality influence productivity?

A

Poor quality costs money because of productivity problems.

67
Q

What types of productivity problems could poor quality lead to?

A

Low-quality parts used
Breakdowns
Slow-downs in production and even stoppages

68
Q

How does poor quality influence profitability?

A

If quality increases profitability, then poor quality reduces profitability, especially in terms of a negative working environment for employees.

69
Q

How does poor quality influence customer satisfaction?

A

Quality is directly related to customer satisfaction; dissatisfied customers are more vocal.

It is now easier to complain and reach a large audience with websites and reviews.

70
Q

How does poor quality influence costs?

A

Using poor quality, cheaper parts may be better in the short term, but the long-term effects might be far more expensive.

71
Q

How does poor quality influence reputation?

A

Can damage a business’s reputation

72
Q

How does poor quality influence sales volume?

A

If a product fails to meet the standards expected by customers, the demand will decrease.

Business (16 decks)

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