Chapter 7 Flashcards
(34 cards)
Quality
● Quality is the ability of a product/service to satisfy the specific needs of consumers.
● It is measured against specific criteria such as physical
appearance/reliability/durability/sustainability/after-sales services.
● The efficiency of services and the ability to provide an effective outcome without too many
delays.
Quality control
● A system that ensures the desired quality is met by inspecting the final product to ensure that it
meets the required standards.
● Includes setting targets/measuring performance and taking corrective measures.
● Checking raw materials/employees/machinery/workmanship/production/processes to ensure that high quality standards are maintained.
Quality Assurance
● Checks are carried out during and after the production process.
● Ensure that required standards have been met at every stage of the process.
● Ensure that every process is aimed at getting the product ‘right the first time’ and purposefully/actively preventing mistakes from happening.
Quality management
● The process of managing all activities needed to ensure a business produces
products/services of consistently high standards.
● Refer to techniques/tools used to design/improve the quality of a product.
● Can be used for accountability within each of the business functions.
Aims to ensure that the quality of products/services is consistent.
Quality management systems
● A quality management system is a framework that a business uses to manage key organisational processes.
● It is a formalised system that documents
procedures/processes/responsibilities for achieving quality policies/objectives.
● Coordinates/directs organisational activities to meet customer/regulatory requirements/improve
its effectiveness/efficiency/accuracy on a continuous basis.
Quality Performance
● The total performance of each department is measured against the specified standards.
● Can be obtained if all departments work together towards the same quality standards.
● Quality is measured through physical product/statistical output of processes/surveys of the
users and/or buyers/consumers of products/services.
Differences between Quality Control and Quality Assurance
Quality Control:
● System that ensures the desired quality is met by inspecting the final product.
● Ensures that finished products meet the required standards.
●Includes setting targets/measuring
performance and taking corrective measures.
Quality Assurance:
Checks carried out during and after the production process.
Ensures that required standards have been met at every stage of the process.
The ‘building in’ of quality as opposed to ‘checking for’ quality.
Differences between Quality Management and Quality Performance
Quality Management:
Techniques/tools used to design/ improve the quality of a product.
Can be used for accountability within each of the business functions.
Aims to ensure that the quality of
products/services is consistent.
Quality Performance:
● Total performance of each department measured
against the specified standards.
● Can be obtained if all departments work together towards the same quality standards.
● Quality is measured through physical product/statistical output of processes/surveys of the
users and/ or buyers of products/services.
Benefits/Advantages of a good Quality Management System (QMS)
● Increased market share/more customers improve profitability.
● Improves business image as there are fewer defects/returns.
● Improves the financial sustainability of the business as customers are retained.
● Enhances the ability of the business to achieve its vision/mission/goals.
● The business has improved its competitive advantage over its competitors.
Quality of performance/Quality indicators of each business function
The quality of performance in each business function directly influences the extent to which the
business can achieve quality throughout the business.
The contribution of each business function to the success of the business is also known as quality indicators.
The contribution of the general management function to the success of a business /
Quality indicators of the general management function
● Effectively communicate a shared vision, mission, and values.
● Set direction and establish priorities for their business.
● Ensure that all departments/the business meet(s) their deadlines/targets/achieve goals.
●Develop/Implement/Monitor/Maintain effective strategic plans.
● Lead by example. / Set an example of the behaviour that is expected from employees regarding
ethics/professionalism/productivity/work ethic.
The contribution of the production function to the success of a business / Quality
indicators of the production function
● Products meet customers’ requirements by being safe/reliable/durable.
● Monitor processes and find/determine the root causes of production problems.
● The production manager should aim to produce products at the lowest possible cost to ensure
profit maximisation.
● The production manager should communicate the roles and responsibilities to the production
workers.
The contribution of the purchasing function to the success of a business / Quality
indicators of the purchasing function
● Buying raw materials in bulk at lower prices.
● Ensures required quantities are delivered at the right time and place.
● Selecting reliable suppliers that render the best quality raw materials/capital goods at
reasonable prices.
● Placing orders timeously and ensuring regular follow-ups so that goods are delivered on time.
The contribution of the marketing function to the success of a business / Quality
indicators of the marketing function
● Acquire a greater market share through good/effective/efficient customer service.
● Adhere to ethical advertising practices when promoting products/services.
● Identify competitive edge/gaps in the market and conduct regular market research.
● Use aggressive advertising campaigns to sustain the market share.
The contribution of the financial function to the success of a business / Quality
indicators of the financial function
● Analyse/Apply/Devise/Implement strategies to increase profitability.
● Obtain/Acquire capital from the most suitable/available/reliable sources.
● Negotiate better interest rates to keep the financial cost down/reduce financial costs.
● Update financial records regularly to ensure timely/accurate tax payments.
● Implement financial control measures/systems/processes to prevent fraud.
The contribution of the public relations function to the success of a business / Quality
indicators of the public relations function
● Address negative publicity quickly/instantly to ensure less/little/no incidents regarding negative publicity.
● Provide regular/positive press releases.
● Implement sustainable Corporate Social Investment (CSI) programmes.
● Provide good results of/Positive feedback from public surveys on the business image.
● High standards of internal publicity/appearance of buildings/professional telephone etiquette, and so on.
The contribution of the administration function to the success of a business / Quality
indicators of the administration function
● Use modern/updated technology efficiently/effectively.
● All documentation is kept neatly and orderly in a safe place.
● Easy to recall/find information/documentation.
● Financial documents are kept up to date and recorded accurately.
● Fast and reliable data capturing and processing systems.
The contribution of the human resources function to the success of a business /
Quality indicators of the human resources function
● Offer performance incentives for staff to enhance productivity.
● Sound/positive relationships with employees improve employee morale.
● Low staff turnover/low employee attrition rates in the business.
● Fair remuneration packages aligned to the industry.
