This document discusses the concepts of quality, quality systems, and their importance for businesses. It explains that quality can be measured both tangibly, through factors like reliability and durability, and intangibly, through a brand's reputation. Total Quality Management and Kaizen approaches aim to build quality into production processes and continuously improve quality through small changes. Quality standards like ISO 9001, BS5750, and CE marking indicate that a business has systems to ensure a consistent level of quality, though they do not guarantee high quality itself. Managing quality systems involves costs but can provide benefits like increased sales, reputation, and price through a good quality reputation.

1. Quality
• Learning Aim- to understand quality
systems and the importance of quality
to a business.
• Success Criteria – To explain the effect
of good/bad quality on a business

2. Challenge
• Follow the instructions to create
your hat.

3. Step 1 – Fold
the paper in half
Step 2 - Fold down each
side to make trinagles
Step 3 - Fold the
bottom flaps up

4. Quality
• Check each-others hats
• Who has the best
• Which is the best quality?
• How could we improve quality?
• How could we ensure quality across the
classroom
• This is what we will learn today

5. Why is quality important?
Think of your mobile phone
You drop it
Open it
Close it
Use the buttons
Fiddle with it
Hundreds of times a day
If it wasn’t high quality it would break
You would not recommend it to your friends
The company would lose sales

6. The importance of Quality
• Click pic for video

7. What is Quality?
• Quality is subjective –a matter of
personal opinion –and views of it will
vary from individual to individual.
• Quality: Those features of a product or
service that allow it to satisfy (or delight)
customers.
• Think of 1 product that you think is high
quality

8. How to measure quality?
• Tangible measures of quality –appearance,
reliability, durability, functions (added extras),
After-sale service: cost, promptness and
effectiveness, repair and maintenance needs
• Intangible measures of quality –Image and brand
(e.g. Cadbury), reputation (e.g. The Times
newspaper), exclusiveness (e.g. Chanel)

9. Benefits of having a quality
system
• Impact on sales volume –a business is more
likely to retain customers who are happy
with the quality of their products - Waitrose
• Creating a unique selling point –businesses
can use the level of quality as a USP for their
product – The Ritz
• Impact on selling price –businesses can
charge a higher price if their goods and
services are of high quality – Hotel Chocolat

10. Why might
they be
introducing
special
deals???

11. Benefits of having a quality
system
• Cost reductions –a quality system can
reduce the amount of wastage and
therefore the business’s costs
• The firm’s reputation –A good
reputation is important for a firm’s
competitiveness/profitability. – Cadbury
Salmonella scare

13. Quality Control & Quality Assurance
Quality control where finished products are
checked by inspectors to see if they meet the
set standard.
Quality assurance where quality is built into
the production process. For example, all staff
check all items at all stages of the production
process for faults. In this way everyone takes
responsibility for delivering quality. Successful
quality assurance results in zero defect
production.

14. What’s the difference?
Quality Assurance Quality Control
A medium to long term process,
cannot be implemented quickly
Can be implemented at short notice
Focus on processes, how things are
made or delivered.
Focus on outputs work in progress
and finished goods
Achieved by improving production
processes
Achieved by sampling and checking
(inspection)
Targeted at the whole organisation Targeted by production activities
Emphasises the customer Emphasises required standards
Quality is built in to the product Defect products are inspected out.

15. Quality at VW (click pic for video)

18. Managing a Quality system
• Costs – Quality procedures are expensive to
set up. Continual monitoring of production
involves significant costs.
• Training – Any system of quality relies on a
well trained workforce. Training can be
costly.
• Disruption to production – Workers need to
be trained before new systems are
introduced

19. Value for money
• Some products and services are marketed
as ‘basic’, having none of the extra features
and benefits of more expensive
alternatives
• Even though it may be ‘low quality’ in
terms of style or features, these products
still give good value for money for their
overall level of quality.

20. Value for money
• Select one company that benefits from basic
quality products. How does this affect the
quality bullet points below?
• Improves sales?
• Creates a unique selling point?
• Impact on Price?
• Improves companies reputation?

22. Quality
• Learning Aim- to understand the
concepts of TQM, Kaizen, and quality
standards
• Success Criteria – To explain the
importance for businesses

23. Recap – Intangible Quality

24. Intangible Quality – can be subjective

25. Tangible Quality

26. But quality can be measured
Failure or reject rates
Level of product returns
Customer complaints
Customer satisfaction – usually measured by a
survey
Customer loyalty – evident from repeat
purchases, or renewal rates

27. Total Quality Management
• TQM is an example of a Quality Assurance
system.
• It is based on the principle that everyone
within a business has a contribution to
make to the overall quality of the finished
product or service.

28. Total Quality Management
Zero Defects
Continuous
Improvement
ConsistencyClear Goals
Committed
Staff

29. TQM - Issues
• TQM is not an easy concept to introduce into
businesses - In fact - many attempts to
introduce TQM fail!
• It requires that management give employees a
say in the production processes that they are
involved in.
• So "empowerment" is a crucial part of TQM.
The key to success is to identify the
management culture before attempting to
install TQM.

30. Kaizen

31. Kaizen
• Kaizen , or ‘Continuous Improvement’ is a
policy of constantly introducing small
incremental changes in a business in order to
improve quality and/or efficiency.
• This approach assumes that employees are the
best people to identify room for improvement,
since they see the processes in action all the
time.
• A firm that uses this approach therefore has to
have a culture that encourages and rewards
employees for their contribution to the process.

32. ISO 9001
• Awarded to Businesses in the EU
• The award does not prove that every
product produced or service provided by the
business is of good quality. It is an indication
that a business has a system of quality in
place that has relevant targets set and
activities ready to deal with a quality
problem.
Click for video hyperlink

33. BS5750
• BS5750 is a British Standard for quality assurance
and ISO 9000 is the EU equivalent.
• This approach was very common in the 1980s
and 1990s and many major organisations would
only buy products and services from firms that
possessed BS5750 accreditation.
• Furthermore, just because a firm holds BS5750
and is delivering a consistent service, it does not
guarantee that the service is better than a firm
that does not have the award.

34. CE Marking
• CE marking is a key indicator of a product’s
compliance with EU legislation and enables
the free movement of products within the
European market.
Click for video hyperlink

37. Royal Seal of Approval
• Royal Warrant - video
• Some British firms are fortunate to gain a ‘Royal
Warrant’, which allows them to state that they
are endorsed by Royal Appointment to Her
Majesty the Queen, to the Duke of Edinburgh or
to the Prince of Wales. This accreditation will be
proudly displayed on the product packaging
and on the firm’s correspondence and
marketing literature.
• List of companies with a royal warrant

41. Activity
• Choose a company from the list and research
how quality helps their business. Think about :
• Tangible/intangible quality
• Benefits of quality (increased sales,
reputation?)
• Quality control & assurance
• Quality standards
• TQM/Kaizen
• Are employees involved in quality?
• How do they manage quality?