Topic 40 -> Quality Management

Question 1

How customers judge quality

Answer 1

1. Design and aesthetic
2. Reliability/durability
3. Special features
4. Profitability
5. After sales service speed
6. Brand image and reputation

Question 2

Why does quality matter to firm

Answer 2

. Higher disposable incomes + better information makes buyers less tolerant of faults
. Legislation, media reviews and intense competition forces firms to raise quality
. Poor quality = redesigns costs, waste, refunds

Question 3

Quality control

Answer 3

Inspect finished goods against standards
Advanatge -> stops defects reaching customers
Disadvantages-> wasteful - faults found after value + responsibility seats with inspectors, not markers

Question 4

Quality assurance

Answer 4

Procedures & checkpoints built into every stage of production
Advantage -> prevents waste by catching problems early + builds quality
Disadvantage -> requires training and continuous monitoring

Question 5

Quality circles

Answer 5

Small teams form same area meet regularly to study and solve quality problems
Advantage -> motivates staff through involvement
Disadvantage -> needs management support

Question 6

Total quality management (TQM)

Answer 6

Company wide philosophy “quality is everyone’s job, all the time”
Advantage -> defect prevention not detection + improves costs and processes and customer satisfaction
Disadvantage -> long learning curve and training costs

Question 7

Kaizen

Answer 7

Ongoing, incremental changes driven mainly by employees
Advantage -> cultivates team spirit & problem solving habit + reduces waste
Disadvantage-> can feel slow, needs commitment and good communication

Question 8

Zero defects goal

Answer 8

Make it right, first time, every time via rigorous processes and empowerment
Advantage -> reputation for reliability
Disadvantage-> high initial investment in process and design training

Question 9

Supporting TQM tools and concepts

Answer 9

1. Quality chains
2. Company wide policy
3. Statistical process control
4. PDCA (plan-do-check-act)
5. Eliminating waste

Question 10

People and culture factors -> initiative and why it helps

Answer 10

1. Teamwork across departments -> speeds problem solving
2. Training and empowerment -> staff can spot defects early and fix root
3. Consumer feedback -> surveys and complaint data reveal design flaws
4. Recognition and rewards -> celebrating team’s quality ideas secures long term commitment

Question 11

Benefits of higher quality management

Answer 11

1. Higher sales
2. Cost savings
3. Pricing power
4. Flexibility in markets
5. Competitive Advanatge and profit growth