Business - Quality Management
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- Created by: Becky_Berry
- Created on: 05-03-21 15:59
What is quality?
- Refers to a standard of excellence
- meeting the needs and expectation of customers
- good design
- durable
- reliable
- good functionality
- consistency
- value for money
- customer has to be satisfied that the price reflects the quality
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Importance of Quality
- fewer returns = fewer costs
- customer loyalty
- makes repeat purchases and recommends products to others
- retailers and distributers will want to stock your product
- strong brand reputation for quality
- better value for money = will be bought even when prices change
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Quality
- is subjective and a matter of personal opinion
- what constitutes an acceptable level will vary from one individual to another
- is always evolving
- due to improvements in technology, better materials, new manufacturing techniques, and fresh competitors
- whilst controlling quality has benefits to a business, it can also be costly to do so. The benefits must outweigh the costs in the long term.
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Measuring Quality
- quality is measured in two ways
- tangible
- intangible
- tangible
- appearance: function and features
- reliability
- durability
- cost of ownership e.g., repair/maintenance
- intangible
- image/brand
- reputation
- exclusiveness
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Cost of Quality
- poor quality = additional costs
- replacement and refund costs
- loss of customers
- wasted materials
- poor quality includes:
- product delivered late
- doesn't perform as promised
- poor instruction making product difficult to use
- product fails
- break downs
- general wear and tear
- unresponsive customer service
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Quality Management
- ensures that an organisation, product or service is consistent
- Total quality management:
- aiming to develop quality culture throughout the business = zero defects
- involves all members of staff
- right approach 1st time
- concentrates on the systems and staff
- continuous improvement
- you can't have quality control without first having quality management and quality assurance
- staff are encouraged to put forward ideas on how to improve the process, this is known as continuous improvement. There will be commitment to quality assurance rather than quality control.
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Quality Assurance
- production process
- all workers are involved with checking quality of product at each stage of production
- makes sure the product reaches the customers standards
- aims to prevent faulty products from being produced
- faulty products are identified early in the production process. This will reduce waste, in turn saving the company money.
- improves workers motivation as they gain recognition
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Quality Control
- product orientated
- prevents faulty products reaching customers
- products checked by inspectors to see if they meet the quality standards set by the company
- products not meeting standards of quality will be discarded or sent for rework
- rejected product = expensive = materials wasted = very costly
- product inspected at the start and end of the production process
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Quality Circles
- small groups of workers who come together to discuss and solve problems
- employees who are doing the job often have a better idea on how to improve processes
- 4 key stages:
- planning
- identify what the business needs to do
- analysis
- implement quality improvement
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Benefits of Improved Quality
- key to competitiveness
- similar price but higher quality = likely win
- improved image and reputation
- higher selling price = higher profits
- higher demand = lower costs
- fewer complaints
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Benchmarking
- the objective of benchmarking is to identify internal opportunities for improvement
- is a process of measuring the performance of a company's products, services, or processes against those of another business
- benchmarking can be split into 5 key stages
- planning phase
- analysis phase
- integration phase
- action phase
- maturity phase
- best practice in industry and then copy your competitor by adding extra value or unique selling points (USP) to the product
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