1. UNIT 5 OPERATIONS MANAGEMENT Quality Assurance

2. Learning Objectives To be able to explain the concept of quality To understand the difference between quality control and quality assurance – total quality management HL – Explain the role of local and national standards in assuring quality for consumers

3. 10 DISGUSTING OBJECTS ALLEGEDLY FOUND IN FAST FOOD Read the following alleged findings and in groups of 2 – 3, using a fishbone diagram, write down all the possible justifications for 1 – 2 of these mishaps. http://theweek.com/article/index/228033/10nbspdisgusting-things-allegedly-found-in-fast- food

4. The concept of quality Customer expectations vary Expectations will be different for goods and services sold at different prices A quality product does not HAVE to be made with the highest quality materials – but it MUST meet consumer requirements In some cases a product MUST meet the highest quality standards are the costs are not significant – jet engine parts

5. The concept of quality A quality product does not have to be expensive A cheap good can be considered of good quality if it performs as expected Quality depends on the products price and the expectations of the consumer

6. Quality Standards The expectations of customers expressed in terms of the minimum acceptable production or service standards Quality standards are crucial for both products and services

7. Advantages of producing quality products and services Easier to create customer loyalty Costs saved in relation to customer complaints Longer life cycles Less advertising A premium price could be charged

8. QUALITY CONTROL AND QUALITY ASSURANCE

9. Quality Quality control – based on inspection of the product or a sample of products Quality assurance – system of agreeing and meeting quality standards at each stage of production to ensure consumer satisfaction – 2 very different approaches to managing and achieving quality in any business

10. Quality Control Traditional approach to achieving quality based on inspection or checking, usually of the completed product or of the service as it is being provided to a consumer – EG MP3 player being tested at the end of the production line for battery charging capability Bank customer service advisors having their calls recorded and checked

11. Quality Control Techniques 3 stages to effective quality control 1.Prevention – most effective way of improving quality, if the design of the product follows customer requirements then there will be accurate production 2.Inspection – high costs, these could be reduced by ‘zero-defect’ manufacturing that is the aim of total quality management (TQM) 3.Correction & Improvement – not just about correcting faulty products but also the procedures which caused the faulty products ‘Zero-defect’ – the aim of achieving perfect products every time

12. Inspecting for quality Traditionally inspection was completed at the end of the production process Some checking takes place during the process Expensive – qualified engineers have to be used and sometimes a company may need to damage a product in order to see if it meets its product specification Sampling may be done in stead but this cannot guarantee every product is of the appropriate quality Qualified engineers test a product

13. Weaknesses of inspecting for quality Looking for problems so has a negative culture Job of inspection can be tedious – demotivation If checking only takes place a certain parts then faulty products may pass through the process Takes away the responsibility and authority from workers – demotivation Because of the many weaknesses, there has been a move away from this approach in recent years

14. Quality Assurance Based on setting agreed quality standards at all stages in the production of a good / service in order to achieve consumer satisfaction Doesn’t just focus on finished product Often involves self checking against the agreed standards

15. Quality Assurance Key differences between the two methods are that quality assurance – Puts more emphasis on prevention of poor quality by designing products for easy fault free manufacturing (in stead of poor quality inspection) – Stresses the need for workers to get it right first time – Establishes quality standards and targets for each stage – Checks components, materials and services bought into the business at the point of arrival or delivery

16. Quality Assurance Department Need to consider all areas of the business Agreed standards must be established at all stages – Product design – Quality of inputs – Production quality – Delivery systems – Customer service including after sales

17. Quality Assurance Advantages – Makes everyone responsible for quality – this could be a form of job enrichment – Self checking and making efforts to improve quality increases motivation – This system can be used to ‘trace back’ quality problems – Reduces the need for expensive final inspection and correction or reworking of faulty products

18. Importance of quality assurance systems To involve all staff and this can promote team work and a sense of belonging which aids motivation To set quality standards for all stages of production so that all materials and production is checked before it is ‘too late’ Reduce costs of final inspection Gain accreditation for quality awards – most widely recognised award within the EU is ISO 9000

19. Internationally recognised certificate that acknowledges the existence of a quality procedure that meets certain conditions Award is given to firms that can demonstrate that they have a quality assurance system in place BUT…ISO 9000 is not a guarantee of good quality

20. Total Quality Management (TQM) An approach to quality assurance which requires the involvement of all employees in an organisation Based on the principle that everyone in a business has a contribution to make to the overall quality of the finished product / service Reducing waste and costs

21. TQM – an approach to quality that aims to involve all employees in the quality improvement process Lean Production – producing goods and services with the minimum of wasted resources whilst maintaining high quality

22. TQM Often involves a significant change in culture Employees can no longer think that quality is someone else's responsibility Employees should now consider the ‘internal customer’ – that is, other employees who depend upon the quality of work being done by others To be effective TQM concept must be fully explained and training given to all staff TQM is NOT a technique, it is a philosophy Aim is to make workers at every level accept responsibility for quality Should be empowered – Herzberg Aims to cut costs TQM will not operate well in an authoritarian structure To be effective TQM concept must be fully explained and training given to all staff TQM is NOT a technique, it is a philosophy Aim is to make workers at every level accept responsibility for quality Should be empowered – Herzberg Aims to cut costs TQM will not operate well in an authoritarian structure