Learning objectives Candidates should have an understanding of customer expectations of quality. Work in pairs today
Starter Read the case study and answer the questions
Does quality matter? In your pairs Write a list of products That as a customer You would like to be able to trust the quality. Be ready to share your list with the group I Hope this is a quality product !
What is quality? Write down a definition in your notes: Quality management is where a business produces what customers need and want within budget and on time.
Can you rank quality? How does a business know what level of quality to produce? Watch the video on next slide
Video on the link between quality and customer expectations
What is poor quality? Discuss this in your pair and get ready with your answer... Poor quality is....
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 Customer service is hard to find (e.g. telephone not answered) Business employees appear rude or uninterested in the customer Poor quality is when a product does not meet customer expectations
What are the costs of poor quality? In your pair discuss what the costs to a business might be of producing a poor quality product or service.
Costs of poor quality – Lost customers (expensive to replace – and they may tell other people about their bad experience) – Cost of reworking or remaking product – Costs of replacements or refunds – Wasted materials
Customer expectations Think about your needs and expectations as a customer when you buy a product or service. These may include: – Performance – Appearance – Availability – Delivery – Reliability – Price In your pair give an example of each. E.g. Performance (car)
Performance Your need as a customer may be to have 220 BHP and travel from A to B fast in style. You are looking for a performance car.
Appearance Your needs as a customer may be to have a watch that looks good, the appearance of quality is important to you
delivery You order a product on ebay and want it delivered on time, a fancy dress outfit for red nose day for example. But it doesn’t arrive on time.
Reliability You start a job and its important to get to work. You get in your car in the morning and the car doesn’t start. A reliable vehicle may be critical in the future.
Price Demand for petrol does not change even if the price rises, so people will drive miles to get to a cheaper petrol station.
Quality Quality is one of the key decisions in operations in today’s highly competitive global market. Vital to increase profits, reduce costs and improve customer satisfaction. Difficult term to define as it can mean different things to different people.
Quality from a customer viewpoint Customers want a quality product right for the price paid Customers judge quality on the extent to which it satisfies their needs and wants With a watch as well as wanting it to tell the time customers may want a status symbol
What do customers want? Discuss in your pair – what do customers want... From a car? From a smartphone? From a pair of trainers
How does a business achieve quality? Producing products of the required quality does not happen by accident There has to be a production process which is properly managed Ensuring satisfactory quality is a vital part of the production process. Quality management is concerned with controlling activities with the aim of ensuring that products and services are fit for their purpose and meet the specifications There are two main parts to quality management – Quality assurance – Quality control
Quality Assurance Quality assurance is about 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 The focus of quality assurance is, therefore on the product design/development stage Why focus on these stages? – 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 control Quality control is the traditional way of managing quality Quality control is concerned with checking and reviewing work that has already been done For example, quality control includes: – Inspection – Testing – Sampling. Quality control is mainly about "detecting" defective output - rather than preventing it Quality control can also be a very expensive process. Hence, in recent years, businesses have focused on quality management and quality assurance.
Quality control May involve sampling the product to see if quality is consistent May mean looking at data to see if quality is consistent
Total Quality Management (“TQM”) TQM is essentially an “attitude” Whole business understands need for quality and seeks to achieve it Everyone in workforce s concerned with quality at every stage of production process Quality is checked by workers and not inspectors
Get ready Read through your notes and get ready for a 10 question quiz...
Quiz 1 Does quality matter and why? 2 What is quality? 3 What are the costs of poor quality 4 What are the 6 customer expectations? 5 What is quality from a customers viewpoint? 6 What is quality from a business viewpoint? 7 How does a business achieve quality? 8 What is quality control? 9 What is Quality Assurance? 10 What is TQM?