Booklet 6: Quality Management & Approaches to and Measures of Quality

Question 1

What is Quality?

Answer 1

Quality may be thought of as a standard that meets the needds and expectations of customers.

Question 2

What is the importance of Quality Management to a Business?

Answer 2

1. Performance- Competitive advantage.
2. Reliability.
3. Cost effectiveness.
4. Retaining customers.
5. Attracts good staff.
6. Imporves brand image.

Question 3

How is Quality measured?

Answer 3

1. Value of sales
2. Number of complaints
3. Price- customers will be more willing to pay a higher price.

Question 4

Advantages of a Quality Policy.

Answer 4

1. Allows premium pricing.
2. Gives a USP.- competitive advantage.
3. May attract good staff.
4. Avoids costly complaints.
5. Greater customer loyalty.
6. Reduce costs if the quality of its product is high.

Question 5

Disadvantages of a Quality Policy.

Answer 5

1. Business under scrutiny to continue the high quality expected.
2. Takes focus away from their day-to-day running.
3. It can put a lot of pressure onto workers and as a result de-motivate the workers.

Question 6

Advantages of ISO 9000.

Answer 6

1. Source of competitive advantage.
2. Should enable savings and also fewer returns of faulty products.
3. Indicates high quality increasing sales.

Question 7

Disadvantages of ISO 9000.

Answer 7

1. May slow production process as more procedures have to be followed and data analysed.
2. Expensive and time consuming to achieve.
3. Can be demotivating for employees especially with more paperwork.

Question 8

What is Total Quality Management (TQM)?

Answer 8

TQM is a form of lean production- whereby firms reduce costs and improve efficiency.
Consist of ‘quality chains’ in which each person or team target for zero defects.

Question 9

Advantages for Total Quality Management (TQM)?

Answer 9

1. Customer satisfaction.
2. Cost reduction (fewer defects & fewer returns).
3. Helps increase staff morale as it develops a team approach.

Question 10

Disadvantages for Total Quality Management (TQM)?

Answer 10

1. It can be costly and time consuming.
2. Requires a significant training period.
3. Requires commitment from everyone within the business.

Question 11

What is Quality Assurance?

Answer 11

This is an approach that aims to achieve quality by organising every process to get the product ‘right the first time and prevent mistakes from ever happening.

Question 12

Advantages of Quality Assurance?

Answer 12

1. Costs are reduced. (less wastage)
2. Customer loyalty
3. Attracts good staff
4. Improves the brand image.

Question 13

Disadvantages of Quality Assurance?

Answer 13

1. Costly and time consuming.
2. Business under scrutiny to continue the high qualtiy expected.
3. Customers tend to over-estimate the level of quality actually provided.

Question 14

What is Quality Control?

Answer 14

QC involves inspection and testing during/ after production.

Question 15

Advantages of Quality Control.

Answer 15

1. Quick and cost effective.

2. It should reduce the chance of faulty products reaching the final consumer.

Question 16

Disadvantages of Quality Control.

Answer 16

1. No guarantee that customers receive the best quality porduct or service.
2. Workers not responsible for assessing their own work. Problems with staff motivation.
3. If products are rejected at the end of the production cycle it can be costly.