Aqa bus2-managingquality
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Aqa bus2-managingquality Presentation Transcript

  • 1. 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
    • 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
    Three main points in production when inspection is used in quality control
  • 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 production processes Achieved by sampling & checking (inspection) Targeted at the whole organisation Targeted at production 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
  • 20. Managing Quality