24: Developing effective operations: quality

Question 1

Quality product:

Answer 1

A product or service that meets cutovers expectations and is therefore ‘fit for purpose’.

Question 2

Quality standards:

Answer 2

The expectations of customers expressed in terms of the minimum acceptable production or service standards.

Question 3

Quality control:

Answer 3

This is based on inspection of the product or a sample of products.
E.g. An IPod player being tested at the end of production for battery charging capability.

Question 4

Quality assurance:

Answer 4

This is a system of agreeing and meeting quality standards at each stage of production to ensure consumer satisfaction.

Question 5

Quality assurance has the following claimed advantages over quality control systems based on final inspection:

Answer 5

• It makes everyone responsible for quality. This can be a form of job enrichment.
• Self-checking and making efforts to improve quality increases motivation.
• The system can e used to ‘trace back’ quality problems to the stage of the production process where a problem mightt have been occurring.
• It reduces the need for expensive final inspection and correction or reworking of faulty products.

Question 6

Why is it important for businesses to establish quality assurance systems?

Answer 6

• To involve all staff and this can promote teamwork and a sense of belonging which aids motivation.
• All checked before its ‘too late’.
• To reduce cost of final inspection as this should become less necessary as all stages and sub-sections of the process have been judged against quality standards.
• To reduce total quality costs. By instilling in the whole organisation a culture of quality, it is possible for quality assurance to lead to reduced cost of wastage and faulty products.

Question 7

ISO 9000:

Answer 7

An internationally recognised certificate that acknowledges the existence of a quality procedure that meets certain conditions.
To achieve ISO 9000 a business must have:
- clear and appropriate quality targets.
- A system in place to assure that targets are being met.
- A measuring system to record actual results and resources available to correct the problem should one arise.

Question 8

Total Quality Management:

Answer 8

An approach to quality that aims to involve all employees in the quality improvement process.

Question 9

How can the competitiveness of a business be improved by managing quality effectively?

Answer 9

1. Consistent high quality can clear to such a well known brand image that high prices can be justified for this USP.
2. Achieving consistent quality if often a more effect method of competing rather than lowering prices.
3. As consumer incomes rise with world economic growth the average consumer buying decision will become more influenced by quality and fitness for purpose.
   It is increasingly vital for businesses to differentiate themselves with a quality brand image and, remember, this does not mean ‘quality at any price’ but regularly and consistently meeting consumers (rising) expectations.
   Cost factors involved in improving quality must always be weighed up against the expected gains in competitiveness.