BUSS2 Operations: developing effective operations - quality

Developing effective operations: quality Candidates should be able to: Define quality and TQM Distinguish between quality control and assurance Analyse the issues involved (costs, training, possible disruption to production) and the possible benefits (impact on sales, use as a USP, flexibility in pricing decision and costs) of quality systems and quality standards Assess systems of quality assurance Evaluate quality standards

Definition - quality What is a ‘quality’ product?

Definition – quality standards What are quality standards? It depends on the product –

Definition – quality standards Why might a restaurant that buys the best ingredients still fail to meet its customers’ expectations of quality?

Selecting the level of quality (business) What criteria will a business use to select its level of quality?

Assessing the level of quality (customer) What criteria will a customer use to assess quality?

Costs of poor quality What costs might a business incur as a result of poor quality?

Quality control and quality assurance What is quality control? What is quality assurance?

Quality control versus quality assurance Quality control means that products are c_______ to ensure they meet require standards whereas Quality assurance means that quality is a________ at each s_______ of production.

Issues involved with quality systems Benefits: Drawbacks:

Advantages of quality assurance

ISO 9000 This is an international award given to firms who have a quality assurance system that meets certain conditions. It doesn’t prove that every product produced is of good q_________. To achieve ISO 9000 a business must have: clear and appropriate quality t________ a s_______ in place to check targets are being met a system to record actual results and r___________ available to correct any problems

Total quality management (TQM) TQM is an approach that aims to involve all staff in the q_______ i_____________ p_______. TQM often involves a culture change - quality is everyone’s responsibility – other staff are internal customers. What are internal customers? TQM will require staff training and all staff must think about the customers. It needs suppliers to be part of the approach too.

Improving competitiveness through quality Businesses may be unable to compete on p_____ but may be able to compete on q________. Consistent high quality can be a ____ and hence h________ p________ can be charged. As consumer incomes r_____ people are more interested in q________