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Managing Quality
What this topic is about

• Meaning and
  importance of quality
• Quality control
  compared with quality
  assurance
• Approaches to
  monitoring and
  improving quality
The Business Need for Quality
• Quality is one of the most important
  challenges facing a business
• Markets are more competitive: customers
  are more
  –   Knowledgeable
  –   Demanding
  –   Prepared to complain about poor quality
  –   Able to share information about poor quality (e.g.
      via email & social networking)
• If a business can develop a reputation for
  high quality, then it may be able to create
  an advantage over its competitors
What is Meant by Quality?
• Quality is about meeting the needs and
  expectations of customers
• Customer needs & expectations: e.g.
  –   Performance (fit for purpose)
  –   Appearance
  –   Availability & delivery
  –   Reliability / durable
  –   Price / value for money
• If a product or service meets all those
  needs - then it passes the quality test
• If it doesn't, then it is sub-standard
Examples of Poor Quality

• Product fails – e.g. a breakdown or
  unexpected wear and tear
• Product does not perform as
  promised
• Product is delivered late
• Poor instructions/directions for use
• Unresponsive customer service
Costs of Poor Quality
• Many costs of poor quality, including:
  – Lost customers (expensive to replace – and
    they may tell others about their bad experience)
  – Cost of reworking or remaking product
  – Costs of replacements or refunds
  – Wasted materials
• Poor quality is a source of competitive
  disadvantage
  – If competitors are achieving higher quality, then
    a business will suffer
Quality Management
• Achieving high quality does not happen
  by accident
• The production process must be
  properly managed
• Quality management:
  – Concerned with controlling activities with the
    aim of ensuring that products and services are
    fit for their purpose and meet the specifications
• Two main approaches
  – Quality control
  – Quality assurance
Quality Control - Definition


    The process of
inspecting products to
 ensure that they meet
  the required quality
       standards
Quality control (1)

• Traditional way of managing quality
• Concerned with checking and
  reviewing production
• Quality control is mainly about
  "detecting" defective output - rather
  than preventing it
• Quality control can be a very
  expensive process
Quality control & Inspection
  Three main points in production when inspection is used in quality
                               control
• When raw materials are
  received prior to entering
  production
• Whilst products are going
  through the production
  process
• When products are finished -
  takes place before products
  are despatched to
  customers
Problems with quality inspection

• Costly
• Often at the end of the production
  process – i.e. too late
• Inconsistent inspections
• Often not compatible with modern
  production systems
• Done by inspectors rather than
  workers themselves
Quality Assurance - Definition


   The processes that
   ensure production
    quality meets the
    requirements of
       customers
Quality Assurance (1)
• How a business can design the way a
  product of service is produced or
  delivered to minimise the chances that
  output will be sub-standard
• Focus of quality assurance is on the
  product design/development stage
  – If the production process is well controlled -
    then quality will be "built-in“
  – If the production process is reliable - there is
    less need to inspect production output (quality
    control)
Quality Assurance v Quality Control
 Quality Assurance                   Quality Control

 Focus on processes                  Focus on outputs

 Achieved by improving               Achieved by sampling &
 production processes                checking (inspection)

 Targeted at the whole               Targeted at production
 organisation                        activities
 Emphasises the customer             Emphasises required standards

 Quality is built into the product   Defect products are inspected
                                     out
TQM – Approach to Quality Assurance


   A management philosophy
     committed to a focus on
  continuous improvements of
  product and services with the
    involvement of the entire
           workforce
Total Quality Management (“TQM”)

• TQM is essentially an “attitude”
• Whole business understands need
  for quality and seeks to achieve it
• Everyone in workforce is concerned
  with quality at every stage of
  production process
• Quality is ensured by workers and
  not inspectors
Advantages of TQM

• Puts customer at heart of
  production process
• Motivational since workers feel
  more involved and are making
  decisions
• Less wasteful than throwing out
  defective finished products
• Eliminates cost of inspection
Disadvantages of TQM

• Requires strong leadership – often
  missing in a business
• Substantial investment in training &
  support – but return on investment
  not immediate
• May become bureaucratic
• Disruption and costs may outweigh
  benefits
Test Your Understanding




 http://www.tutor2u.net/business/quiz/quality/quiz.html
Managing Quality

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Operations - Managing Quality

  • 2. What this topic is about • Meaning and importance of quality • Quality control compared with quality assurance • Approaches to monitoring and improving quality
  • 3. The Business Need for Quality • Quality is one of the most important challenges facing a business • Markets are more competitive: customers are more – Knowledgeable – Demanding – Prepared to complain about poor quality – Able to share information about poor quality (e.g. via email & social networking) • If a business can develop a reputation for high quality, then it may be able to create an advantage over its competitors
  • 4. What is Meant by Quality? • Quality is about meeting the needs and expectations of customers • Customer needs & expectations: e.g. – Performance (fit for purpose) – Appearance – Availability & delivery – Reliability / durable – Price / value for money • If a product or service meets all those needs - then it passes the quality test • If it doesn't, then it is sub-standard
  • 5. Examples of Poor Quality • Product fails – e.g. a breakdown or unexpected wear and tear • Product does not perform as promised • Product is delivered late • Poor instructions/directions for use • Unresponsive customer service
  • 6. Costs of Poor Quality • Many costs of poor quality, including: – Lost customers (expensive to replace – and they may tell others about their bad experience) – Cost of reworking or remaking product – Costs of replacements or refunds – Wasted materials • Poor quality is a source of competitive disadvantage – If competitors are achieving higher quality, then a business will suffer
  • 7. Quality Management • Achieving high quality does not happen by accident • The production process must be properly managed • Quality management: – Concerned with controlling activities with the aim of ensuring that products and services are fit for their purpose and meet the specifications • Two main approaches – Quality control – Quality assurance
  • 8. Quality Control - Definition The process of inspecting products to ensure that they meet the required quality standards
  • 9. Quality control (1) • Traditional way of managing quality • Concerned with checking and reviewing production • Quality control is mainly about "detecting" defective output - rather than preventing it • Quality control can be a very expensive process
  • 10. Quality control & Inspection Three main points in production when inspection is used in quality control • When raw materials are received prior to entering production • Whilst products are going through the production process • When products are finished - takes place before products are despatched to customers
  • 11. Problems with quality inspection • Costly • Often at the end of the production process – i.e. too late • Inconsistent inspections • Often not compatible with modern production systems • Done by inspectors rather than workers themselves
  • 12. Quality Assurance - Definition The processes that ensure production quality meets the requirements of customers
  • 13. Quality Assurance (1) • How a business can design the way a product of service is produced or delivered to minimise the chances that output will be sub-standard • Focus of quality assurance is on the product design/development stage – If the production process is well controlled - then quality will be "built-in“ – If the production process is reliable - there is less need to inspect production output (quality control)
  • 14. Quality Assurance v Quality Control Quality Assurance Quality Control Focus on processes Focus on outputs Achieved by improving Achieved by sampling & production processes checking (inspection) Targeted at the whole Targeted at production organisation activities Emphasises the customer Emphasises required standards Quality is built into the product Defect products are inspected out
  • 15. TQM – Approach to Quality Assurance A management philosophy committed to a focus on continuous improvements of product and services with the involvement of the entire workforce
  • 16. Total Quality Management (“TQM”) • TQM is essentially an “attitude” • Whole business understands need for quality and seeks to achieve it • Everyone in workforce is concerned with quality at every stage of production process • Quality is ensured by workers and not inspectors
  • 17. Advantages of TQM • Puts customer at heart of production process • Motivational since workers feel more involved and are making decisions • Less wasteful than throwing out defective finished products • Eliminates cost of inspection
  • 18. Disadvantages of TQM • Requires strong leadership – often missing in a business • Substantial investment in training & support – but return on investment not immediate • May become bureaucratic • Disruption and costs may outweigh benefits
  • 19. Test Your Understanding http://www.tutor2u.net/business/quiz/quality/quiz.html