HOW DO FIRMS ENSURE QUALITY

What is Quality?
Reliability
Durability
Special
Features
Reputation
Suitability
After Sales
Service

Why is it important?
Consumers are more aware
Magazines publish reports
Consumers have higher expectations
Legislation
Competition forces improvement
Part of Kaizen and lean production

Quality Control
In the Production Dept
Production Department ensures that products
Satisfy consumer needs
Work under the conditions they will face
Can be produced cost effectively
Can be repaired easily
Conforms to safety standards

3 STAGES OF QUALITY CONTROL
Identify standards and set targets
Monitor standards – test products
Respond to findings

Remove a sample of cereal every half hour
Test 50 samples twice a day
Compare sample with the perfect product
Grade given: 1-10 where 10 = perfect
7-10 = pass
TRADITIONAL METHOD OF TESTIN G THE COMPLETED PRODUCT = WASTE

Facts about Quality
1/3 of all effort in British business is wasted in correcting errors
£4 billion is spent on this
Obvious benefits of getting it right first time and not after the fact

THE MODERN APPROACH
TEST PRODUCT DURING PRODUCTION TO PREVENT FAULTS AND POOR QUALITY

TOTAL QUALITY
MANAGEMENT
TQM

What is TQM?
A method designed to prevent errors and poor quality products
The business ensures that the manufacturing process is investigated at every stage
Success of Japanese companies based on this
100% of the organisation must be involved
It is a business philosophy…

Quality Chains
In order to produce quality goods you must have
Quality suppliers and raw materials
Quality administration systems
Quality equipment
These elements make up a quality chain.

Company Policy
There will only be improvement if there is a company wide policy
TQM must start at the top and spread through the business
People must take pride in their job
Everyone is accountable for their own performance

TQM AND MOTIVATION
Teamwork is the most effective way of solving problems
ADVANTAGES ARE:-
Employee morale is often improved
Problems are better dealt with
A greater variety of problems can be dealt with in teams
Team ideas are more likely to be accepted

USING TQM
TQM helps companies to
Focus on the needs of the consumer
Achieve quality n all aspects of the business
Analyse all processes and remove waste
Develop a team approach to problem solving
Develop effective procedures for communications

QUALITY CIRCLES
Small groups of staff, usually from the same work area, who meet on a regular and voluntary basis
They attempt to solve problems
No discussion of other issues –just quality
Must fulfil certain conditions
Used in all Honda plants

QUALITY CIRCLES
A steering committee should be set up to oversee the programme
A senior manager should chair the committee
Team leaders should be properly trained
Workers from various levels should be present

Problems with TQM?
Training and development
It will only work with 100% commitment
Increased paperwork due to regular audits
Cost – design and development, monitoring, cost or trying again if system fails.

BENCHMARKING
BPB – Best Practice Benchmarking
A technique used by some businesses to help them discover the ‘best’ methods of production and adopt them.
Fid the best company
Analyse their methods
Equal their standards

The steps:-
What should be benchmarked?
Who should the company benchmark against?
How is the information obtained?
How should the info be analysed?
How will the info
be used?

QUALITY STANDARDS
BSI Kitemark
Investors in people
Scottish Tourist Board star system
AA/RAC
Lionmark
Woolmark
Marks that show a product has met a certain standard