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AS Business Studies
Unit 2:
Business Functions
(Operation Management)…read more

Slide 2

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Quality Standards and Quality
· While controlling and monitoring quality is important, first
of all we need to set a measure by which we will measure
the quality of our products. These quality standards are
vitally important ­ too high a standard will result in extra
unnecessary costs while too low a standard will put off
customers. The key is getting the balance exactly right.
· Remember, quality control is monitoring and preventing
poor quality. Here, we are talking about QUALITY
STANDARDS rather than monitoring them. This is the
minimum quality you would expect your products to be
when they come off the production line.
· As a business, we need to decide what measure of quality
we will use i.e. what definition of quality we are going to
use. Once we've decided this, we can then implement a
system of QUALITY ASSURANCE. This is a commitment
by the organisation to maintain quality throughout its
business, the aim being that they will stop problems
before they occur. It is PREVENTATIVE rather than
· They can also use codes of practice to set their quality
assurance standards.…read more

Slide 3

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ISO 9000
· One code of practice businesses can measure their quality against
is ISO 9000. If a business achieves this award then it means that
their product and production processes meet the standards set by
the British Standards Institute.
· This means that customers can be reassured that the products that
the business sells are safe and of the quality required by industry
· ISO 9000 certification can help a business to:
­ Examine and improve systems, methods and procedures.
­ Motivate staff
­ Ensure consistency in production
­ Give clear signals to customers that they are taking measures to ensure
good quality…read more

Slide 4

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· This is when you select the market leader in your
particular industry and then benchmark your product
standards against them. John Lewis for example states
that they are "never knowingly undersold" ­ i.e. they
benchmark their prices against competitors to make sure
that they give you best value for money.
· It also means benchmarking internally. In other words,
employees should look at the best process and then
benchmark against it to ensure maximum efficiency and
a consistent product quality.…read more

Slide 5

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EU/UK Legislation
· One final area of importance is abiding by
legislation. Businesses must all abide by a
range of laws that will ensure the
customers will receive a minimum
standard of "quality".
· Health and Safety
· Consumer Protection…read more

Slide 6

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· Total Quality Management
· Quality Control
· Quality Assurance
(write a definition and consider pros and
cons of each)…read more

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