OM - Quality Flashcards
(22 cards)
Define quality
Quality could be described as those features of a product or service that allows it to satisfy customer wants.
How to ensure the Provision of Quality Goods and Services
- Use good quality raw materials that will ensure both reliability and durability.
- Keep up to date with any developments in the market in which they operate both in terms of the technical developments and production processes.
- Ensure that staff and sub-contractors are well trained
and capable of carrying out their tasks effectively. - Maintain effective after sales service in terms of delivery, speed of response and availability of parts, etc.
- To maintain the image of their retail outlets and
ensure that customers are impressed with the service
that they receive. - Adopt various quality initiatives – TQM, kaizen, zero
defects, quality circles, quality chains, benchmarking,
etc. - Undertake market research on a regular basis to gain customer feedback in relation to the quality of their service.
- Ensure that the workforce is well motivated in order
that they provide quality workmanship and good
customer service.
Outline several separate
functional departments within an organisation that work together to achieve quality
- Purchasing – ensuring that the right quantity and quality of raw materials or components are available for the production
process. - Operations – structuring and managing the manufacturing process.
- Finance – ensuring that capital is available for appropriate investment.
- Human resources – ensuring that the factor of production labour is available in the right quantities with the right skills.
- Marketing – providing market research information in order
that customer wants can be satisfied
Benefits of quality
- increased sales
- reduced costs
- reduced waste
- market orientation
- customer satisfaction.
Benefits bought by having one
purchasing department for a
whole organisation
- To ensure the purchase of quality and consistency of goods and materials that a business requires in order to maintain the reputation they have gained.
- Specialist purchasing managers
can be employed who have qualifications and experience in
sourcing materials. - The business is more likely to be able to purchase the goods and materials that the business requires at the most competitive prices.
- The business can take advantages of economies of scale – bulk purchasing, management economies.
- To ensure that they do not run out of any raw materials – this could result in being unable to fulfill orders or having disappointed customers.
- The business can build up close
relationships with suppliers to
ensure reliability. - To ensure that too much stock
is not purchased, reducing waste.
Quality assurance methods
- team working
- product design checking
- recognised Standards
- benchmarking
- production control.
Describe total quality management
An operations management system that creates structures within an organisation that satisfy internal and external customers and suppliers. It creates quality through continuous improvement, development of systems and products and by creating an organisational culture of quality. It is the view of world-class manufacturers that quality must be ‘built in’. This means that when the finished goods roll off the production line, management is confident that there is no need to check quality. Inspection is carried out during the production process. The emphasis is placed on preventing the production of poor-quality products, as opposed to checking quality at the end of the production line.
Define team working
A team is responsible for a production process, such as the installation of a conservatory.
Benefits of team working
- The team is empowered to check the quality of raw materials, interact during the installation process and check the quality of the finished product. This implies that responsibility lies with the team – we know exactly where the ‘buck stops’.
- Teamwork can build trust and morale, whilst improving communication between members. It is regarded as a key element in achieving quality
Define quality circles
A quality circle is a discussion group that meets regularly to identify quality problems, consider alternative solutions and recommend a suitable outcome to management. Members are
drawn from different parts of the business.
Benefits of quality circles
+ they may improve current practices within the business, making it more efficient
+ introduce ideas that will save the company money or improve sales
+ motivates employees by involving them directly in improving the nature of the work
they are doing
+ may reduce labour turnover.
Define product design checking
In addition to monitoring raw
materials and components, the total design of the product must also be checked for quality.
Define production control
This is the method of ensuring that
standards are set, and processes designed to meet these targets, are actually being used in the workplace
Production control involves
- monitoring of costs through use of budgeting and variance analysis
- control of operations through use of critical path analysis and monitoring of individual processes
- supervision of output (now largely replaced by cell
and teamwork) - feedback methods, involving the monitoring of customer satisfaction and the feedback of
problems to the relevant department.
Define the application of recognised standards
The use of recognised standards such as ISO 9000 is widespread amongst businesses. Achievement
of these standards by businesses is often an indication of achievement and maintenance of quality
* ISO 9000 is supposed to guarantee quality of management of the whole organisation. Achievement of this standard depends on proving that quality targets for all parts of the organisation have been met. However, critics often state that
if low target levels are set then there is no real guarantee of quality.
* Another failing of using recognised standards to achieve quality is that unless targets are related to external benchmarks then the quality process only results in increased product orientation – when often what is required is increased market orientation
Define benchmarking
- Imitating the standards of an established leader in quality and attempting to better them.
- Setting competitive performance standards against which performance can be measured
How to carry out a benchmarking activity
- Identify what the business intends to benchmark – for example, focuses on HRM issues.
- Choose a company (or companies) to set the benchmark against – ask customers or trade journalists, visit other similar businesses that are doing well.
- Gather information from a variety of sources – trade association reports, customers, suppliers, Internet – and analyse it.
- Use the information and implement the findings. This will require funding and monitoring.
- Monitor the impact of the implementation and evaluate the degree of success.
Arguments for the Production Department being the
Most Important Department
+ The production function is important because manufacturing food required consistent quality and cleanliness. Health regulations have to be strictly complied with, as any bad publicity in relation to the quality of the product would be disastrous for the business.
+ Producing the correct amount required by customers at the right time is vital as this is a very competitive market.
+ Keeping production costs at a minimum is very important in relation to the profitability of the business.
In a business where production is a key function, then arguably it is the most important department, but all functional areas need to
operate effectively. As to which is the most important, it is very difficult to say; this will depend upon the circumstances at the time.
Arguments against the Production Department being the
Most Important Department
However, the other functional departments have a crucial role to play in the operation of the business if it is to be successful.
For example:
* Marketing – promotion above and below the line, market research, raising awareness, etc.
* Human resources – people are a key asset, training, recruitment and selection, etc.
* Distribution – ensuring the product gets to the right place at the right time and in the right condition.
* Finance and accounting – ensuring that money is managed efficiently and that liquidity is maintained.
* R&D – ensuring that the product portfolio is developed to meet customer needs.
Define quality control
Quality control is a system of maintaining standards in manufacturing by testing a sample of the output against expected standards. The data collected from the sample is then used to make
judgements on action to be taken. The sample may indicate that quality is of the required standard, or the reverse may be found.
* If standards have not been achieved then appropriate steps to achieve standards must be made – for example, defective units must be repaired or rejected.
* If too many failures to achieve standards occur, a plan must be devised to improve the production process
Define methods of Total quality management
An attempt to establish a culture of quality affecting the attitudes and actions of every employee
Give methods of Total quality management
- Quality chains – trying to get every work group or department to think of those they work for as customers, even if they are fellow employees.
- A company-wide quality policy – this must start at the top with the chief executive and spread throughout the organisation to every employee.
- Quality audits – may help trace the source of problems leading to suggestions for improvements.
- Empowerment – giving employees control over tasks completed.
- Monitoring processes – using techniques such as SPC (statistical process control) to monitor performance and reduce variability in areas such as variations in products, delivery times, materials/ingredients, staff performance, etc.
- Consumer view – staying close to the customer and being responsive to changes in consumers’ needs and expectations. Helps to identify the strengths and weaknesses of a firm’s operations.
- Zero defects – ensuring that every product that is manufactured is free from defects, which enhances the reputation of the business.
- Training – improve quality of employee’s performance.
- Kaizen/continuous improvement – continually looking for ways to improve the performance of the business and the quality controls methods employed.
