1. IGCSE Business Studies
4.3 Achieving Quality Production

2. Learning Outcomes
What quality means; why it is important for all businesses
Concept of quality control and how businesses implement quality control
The concept of quality assurance

3. What is quality and WhY is it Important?

4. What is Quality?
Quality is achieving a standard for a product or service which meets or exceeds customers expectations

5. Task Think of a good/service that you consider to be good quality.
What about it makes you think it is good quality?
What attributes do we associate with good quality?

6. Key aspects of Quality Good design – looks and style
Good functionality
Reliable
Consistency
Durable
Good after sales service
Value for money
Can you add any more?

7. Why is good quality important? What benefits will it bring?

8. Benefits of a Quality Reputation
Customer loyalty – they return, make repeat purchases and recommend the product or service to others.
Retailers want to stock the product – achieve distribution
As the product is perceived to be better value for money, it may command a premium price and will become more price inelastic
Fewer complaints - returns and replacements lead to reduced costs

9. Managing Quality

10. Task – Look at the following companies…..
How can these businesses measure the level of quality of their goods/services? (Key Performance Indicators)
What could these businesses do to check that its goods/services are good quality

12. How is Quality 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

13. Managing Quality

14. Quality Control Vs Quality Assurance
This is the traditional method used by firms to make sure goods are of the right quality
Quality inspectors test products or samples of products at the end of the production process
Aims to get the product ‘right first time’.
Every stage of the production process is examined for ways to improve quality
Documents are produced at each stage to outline the way to do tasks
Workers are responsible for ensuring quality at their stage of production

15. Advantages of Quality Control
Requires little staff training
Suitable when staff are unskilled or temporary
If all output is checked, faulty goods will not reach the consumer

16. Problems with Quality Control
Sometimes only a sample is taken
As faulty goods are often only detected at the end of the production process a lot of goods have to be scrapped or reworked
Staff can feel demotivated

17. Advantages of Quality Assurance
Costs are reduced because there is less wastage and re-working of faulty products as the product is checked at every stage.

18. Advantages of Quality Assurance
Workers will need to be better trained so they know how to check for quality

19. Quality of Services Quality of service is more difficult to measure:
Efficiency
Speed
Interaction with Staff
Cleanliness
How can quality of services be measured?

20. How can Quality be Improved?
Watch the video
‘Gordon Ramsay eats at Guiseppe’s’
What are the problems with Quality?
What suggestions would you make to Guiseppe’s on how they can improve quality?
How could they implement:
Quality Control
Quality Assurance