what is quality?
the ability of a product or service to meet customers’ expectations
how can the quality of goods be measured?
-function
-aesthetics
-time taken to make
-replaceability/ substitutes available
-efficiency
-durability
-augmented aspects e.g. warranty
how can the quality of services be measured?
-price
-kindness
-customer service and knowledge
-refundability
-efficiency of service
-appearance of environment
-cleanliness of facilities
benefits of good quality?
-improves competitiveness
-repeat customers
-positive reviews and word of mouth recommendations
-achieve lower unit costs - less waste
-lower repair and refund costs, saves money
-adds value to price- inelastic
-improves staff motivation
consequences of bad quality
-health or safety problems can lead to lawsuits, fines etc
-costs of repairs and fixing products
-costs of returning
-lower prices are expected
-poor brand image and reputational damage
-lower customer loyalty
-fewer repeat purchases
methods of improving quality
-training employees
-motivating employees
-technology
-working with suppliers
-understanding customers’ expectations
-quality systems (control and assurance)
what is quality control?
the checking of a good or service before it is delivered to a customer i.e. at the end of the process
advantages of quality control
-less time consuming
-cheaper- only need to hire a few specialists
-increases efficiency
-quality is monitored so faulty products do not reach the customer
-inspector takes responsibility for any faulty products reaching customers
disadvantages of quality control
-cannot identify the specific stage that the fault is created (only at the end)
-faults cannot be fixed at the end- passed down production line again
-wasted value is added onto faulty products as it completes the full production process
-in mass production industries only a sample may be checked on behalf of the batch
-requires additional personal/ specialist
what is quality assurance?
the checking of a product or service at each stage of its production e.g. as it travels along a production line
-relies upon self-checking
advantages of quality assurance
-identify the specific stage that the fault was made/ causation
-identify who is responsible for the fault
-competitive advantage in comparison to QC firms
-monitors quality- keeping strong reputation and brand loyalty
-higher staff motivation as they feel empowered and responsible
disadvantages of quality assurance
-time inefficient as workers have to spend more time checking than making
-costly (workers may want higher wages for extra responsibility and work)
-workers need to be trained and specialist enough to carry out the checks
what is TQM?
total quality management
-the responsibility of all employees
-pass the product on only if it is correct
a management approach which focuses on quality and aims to improve the efficiency and competitiveness of the business
name the main principles in TQM
prevention
zero defects- staff pressure or motivation?
getting things right the first time
quality involves everyone- all business departments
continuous improvement (kaizen)
employee involvement- spotting opportunities for quality improvements and identifying quality problems
what is a crucial part of TQM for employees?
empowerment
why is empowerment a crucial part of TQM?
management need to give employees a say in the production process they are involved in, ensure their are no barriers to involvement