QUALITY OF PERFORMANCE Flashcards
(29 cards)
QUALITY
Use the DFN of Quality as part of your Intro in the essay question
QUALITY is the ability of a good or service to satisfy a specific need of consumers. It is
measured on specific criteria such as
- QUALITY CONTROL
QC VS QA
- System that ensures that the
desired quality is achieved by
inspecting the final product. - Ensure that finished products
meet the required standards.
Includes the: - setting of targets
- measurement of performance
- to take corrective measures.
- QUALITY ASSURANCE
QA VS QC
- Controls that are carried out during
and after the production process. - Ensure that at every stage of the
process requirement standards
has been met. - ‘Building in’ quality as opposed to
‘checking for’ quality.
- QUALITY MANAGEMENT
QM VS QP
- Techniques used to determine the
quality of a product to determine
whether to improve it. - Can be used for accountability
within each of the business
functions. - Aim to ensure that the quality of
goods or services is consistent.
- QUALITY PERFORMANCE
QP VS QM
- The total performance of each
section is measured against the
specified standards. - Can be obtained if all departments
work together towards the same
quality standards. - Quality is measured through
surveys of the buyers of goods or services.
QUALITY MANAGEMENT SYSTEM
Is a framework that a business use to manage key organizational
processes. It is a formal system that documents procedures, processes and responsibilities for the achievement of
quality policy and goals.
BENEFITS OF A GOOD QUALITY MANAGEMENT SYSTEM
- Effective customer service
are rendered, which leads to
increased customer
satisfaction - Increased market share and
more customers improve
profitability. - Time and organizational
resources such as finance,
raw materials and labour are
used efficiently. - Businesses improve their
competitive advantage over
their competitors. - Improve business image
since there are less defects
and returns.
QUALITY INDICATORS OF EACH BUSINESS FUNCTION
7 BUSINESS FUNCTION
What EVERY business function
must do to achieve quality.
Public relations
Financial function
Human Resource
General Management
Marketing
Administration
Production
Purchasing
Human Resource
QUALITY INDICATORS
What EVERY business function
must do to achieve quality.
Human Resource function
* Low staff turnover and higher
employee retention rates in the
business.
* Reasonable remuneration packages in
line with the industry.
* Offer performance incentives for staff
to improve productivity.
QUALITY INDICATORS
What EVERY business function
must do to achieve quality.
Public relations
QUALITY INDICATORS
What EVERY business function
must do to achieve quality.
Public relations function
* Providing regular or positive press
releases.
* Implement sustainable programs for
Corporate Social Investment (CSI).
* Dealing quickly with negative publicity
or no incidents of negative publicity.
Financial function
QUALITY INDICATORS
What EVERY business function
must do to achieve quality.
Financial function
* Implement strategies for profitability
too increase e.g. negotiation of better
interest rates.
* Obtain capital from the most suitable
and reliable sources.
* Keep financial records regularly up to
date to ensure timely and accurate tax
payments.
Marketing function
QUALITY INDICATORS
What EVERY business function
must do to achieve quality.
Marketing function
* Increasing market share by good,
effective and efficient customer
service.
* Adhere to ethical advertising
practices when promoting products /
services
* Use aggressive advertising
campaigns to keep market share.
Purchasing function
QUALITY INDICATORS
What EVERY business function
must do to achieve quality.
- Buy raw materials in bulk at lower
prices. - Ensure required quantities should be
delivered at the right time and place. - Select reliable suppliers that render the
best quality raw materials or capital
goods at reasonable prices.
Production function
QUALITY INDICATORS
What EVERY business function
must do to achieve quality.
Production function
* The production manager must provide
quality products or services of high
quality according to specifications.
* Products and services should be
produced at the lowest possible cost to
allow for maximum profit.
* Monitor processes and find the causes
of production problems.
Public relations function
QUALITY INDICATORS
What EVERY business function
must do to achieve quality.
Public relations function
* Providing regular or positive press
releases.
* Implement sustainable programs for
Corporate Social Investment (CSI).
* Dealing quickly with negative publicity
or no incidents of negative publicity.
Purchasing function
QUALITY INDICATORS
What EVERY business function
must do to achieve quality.
Purchasing function
* Buy raw materials in bulk at lower
prices.
* Ensure required quantities should be
delivered at the right time and place.
* Select reliable suppliers that render the
best quality raw materials or capital
goods at reasonable prices.
General Management function
QUALITY INDICATORS
What EVERY business function
must do to achieve quality.
General Management
* Effectively communicate shared vision,
mission and values.
* Set direction and set priorities for their
business.
* Efficient organization and allocation of
business resources.
Production function
QUALITY INDICATORS
What EVERY business function
must do to achieve quality.
Production function
* The production manager must provide
quality products or services of high
quality according to specifications.
* Products and services should be
produced at the lowest possible cost to
allow for maximum profit.
* Monitor processes and find the causes
of production problems.
TOTAL QUALITY MANAGEMENT
(TQM)
5 ELEMENTS
- Continuous skills development
- Continuous improvement of processes and systems
- Adequate financing and capacity
- Monitoring and evaluating of quality processes
- Total customer satisfaction
Continuous skills development
Impact
ADVANTAGES
1. Large businesses have a
human resource department
dedicated to skills training and
development.
2. Ability to afford specialized or
skilled employees.
DISADVANTAGES
1. De-motivates employees, if
they do not receive
recognition for training.
2. Trained employees may leave
for better jobs after they
gained more skills.
Continuous improvement of processes and systems
IMPACT
ADVANTAGES
1. Enough capital is available for
new equipment required for
processes and systems.
2. They can afford to use the
services of quality circles to
stay ahead of their competitors.
DISADVANTAGES
1. Large scale manufacturing
can complicate quality control.
2. Risk of changing parts of the
business that are actually
working well.
Adequate financing and capacity
IMPACT
Advantages:
1. Large businesses have sufficient financing to test everything before implementation.
2. Can afford to purchase quality raw materials and equipment.
Disadvantages:
1. Rapidly growing companies can consume large amounts of capital as they try to balance normal expansion.
2. Financial capital is wasted with wrong financial planning.
Monitoring and Evaluation of Quality Processes
IMPACT
Advantages:
Good quality control and procedures reduce the regular breakdown of equipment.
Large businesses might be better equipped to do things right the first time.
Disadvantages:
Large businesses are often divided, and the departments work in silos.
It is not always possible to check quality of all the products.
Total Customer Satisfaction
IMPACT
Advantages:
1. Large businesses may be able to gain access to the global market.
2. Continuously promote a positive business image.
Disadvantages:
1. Monopolist businesses have an increased bargaining power, so they do not necessarily have to listen to customers.
2. Not all employees may be involved or committed to total customer satisfaction.
