Topic 19 - Quality

Question 1

Importance of Quality

Answer 1

• Poor quality products can result in high returns, decreasing sales
• Poor quality products may not meet safety standards, causing bad PR
• High quality goods can result in a good reputation
• High quality production can attract high quality staff
• High quality products can be sold for high prices

Question 2

Quality Control

Answer 2

Inspecting raw materials or finished goods to check if they are an acceptable standard of quality.

Advantages:
- Faulty goods are not sent to customers
- Limits potential for a bad reputation due to faulty products

Disadvantages:
- Can create a lot of waste
- Products have to be reworked from scratch

Question 3

Quality Assurance

Answer 3

Products are checked for quality at different stages in the development and production process.

Advantages:
- Less waste
- Easy to identify faults in the production process

Disadvantages:
- Can slow production as many processes are inspected
- Increases costs of production

Question 4

Continual Improvement

Answer 4

The business looks to constantly improve its quality processes.

Advantages:
- Business stays ahead of competition
- Can react quickly to changing external factors

Disadvantages:
- High staff development costs
- Employees may feel under pressure to constantly keep improving

Question 5

Quality Circles

Answer 5

Employees meet with a manager and discuss problems in the production process.

Advantages:
- Employees are motivated as they get a say in decision making
- Management get well informed suggestions from those that actually make the product

Disadvantages:
- Production time is lost
- Employees are often trained

Question 6

Quality Standards and Symbols

Answer 6

Proves that a product has met an agreed industry standard.

Advantages:
- Awards proves that a product has met an agreed standard of quality
- Symbols can be used as a promotional tool
- Customers will have confidence in the product and may repeat purchase
- Higher prices can be charged

Disadvantages:
- Time consuming processes need to be completed to achieve the award
- Agreed standards need to be maintained at all times
- Bad reputation if an award is removed
- Annual checks and audits may halt production

Question 7

Quality Management

Answer 7

Using a variety of methods to ensure quality.

Advantages:
- Should result is zero errors which reduces waste
- Staff are motivated as they are constantly consulted on improving quality
- Products are high quality, increases customer confidence and market share
- A culture of teamwork is established

Disadvantages:
- Staff need trained
- Strict selection process is needed
- Processes need to be continually monitored and compared to policies and procedures

Question 8

Mystery Shoppers

Answer 8

People are employed to purchase products, ask questions, register complaints or behave in a certain way, and then provide feedback to the business.

Advantages:
- No bias is shown as mystery shopper is not connected to the business
- Mystery shopper can suggest improvements
- Mystery shoppers cannot share their experiences with others
- Valuable feedback can be gathered if a product is below standard

Disadvantages:
- Staff may dislike a mystery shopper evaluating them
- Feedback may not be fully representative of the whole business
- Human error in judgement may occur
- Expensive

Question 9

Benchmarking

Answer 9

Copying the quality processes of the market leader.

Advantages:
- Product can be as good as the best on the market
- Saves time in coming up with own approach to quality

Disadvantages:
- Difficult to gain information about other business’s quality methods
- Cannot be better than the market leader, can only ever be as good