Quality Management

Refers to the standard of the goods produced

Whether something is quality depends on whether it is:

• meeting customer needs and customer expectation
• a good design
• durable
• reliable
• functions well
• consistent
• value for money
  • if something is good value for money the customer will be satisfied that the price reflects the quality

• Fewer returns = lower costs
• increases customer loyalty
• demand from retailers and distributors will increase
• strong brand reputation concerning quality 
• better value for money = the product will be bought even when prices change

• a matter of personal opinion 
• always evolving due to improvement in:
  • technology
  • materials
  • manufacturing techniques
  • competitors
• controlling quality benefits the business but can be costly.
  • the benefits need to outweigh the costs in the long term

Quality is measured in two ways: tangible and intangible 

Tangible

• appearance
• reliability
• durability
• cost of ownership e.g. repair/maintenance

Intangible 

• image/brand
• reputation
• exclusiveness

Poor Quality = Additional Costs

• replacement costs and refunds
• loss of customers
• material wastage 

Poor Quality includes:

• product delivered late 
• doesn't perform as promised
• poor instruction making the product difficult to use
• product fails 
• break downs
• general wear & tear
• unresponsive customer service

ensures that an organisation, product or service is consistent

Total Quality Management

• aiming to develop quality culture throughout the business = zero defects 
  
• all staff members involved
• right approach 1st time 
• concentrates on the systems and staff
• continuous improvement
• can't have quality control without first having quality management and quality assurance
• staff are encouraged to put forward ideas, this is known as continuous improvement. Commitment to quality assurance rather than quality control

Quality Assurance

• production process
• all workers involved in checking quality
• makes sure the product reaches customer standards
• prevent faulty products
• faulty products identified early
  • reduces waste 
    • saves the company money
• improves worker motivation as they gain recognition 

Quality Control

• product orientated
• prevents faulty products reaching customers 
• products checked by inspectors to meet the company's standards
• products not meeting standards will be discarded or sent for rework
  • rejected products = expensive = materials wasted = very costly
• products inspected at the start and end of the production process 

• 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

• competitiveness 
• improved image and reputation
• higher selling price and reputation 
  • high selling price = high profit
  • high demand = low costs
• fewer complaints 

• the objective of benchmarking is to identify internal opportunities for improvement
• process of measuring the performance of a company's products, services or processes
• benchmarking can be split into 5 key stages:
  • planning 
  • analysis
  • integration
  • action
  • maturity 
• best practice in the industry is to copy your competitors and then add extra value or a USP to your product