QUALITYQUALITY

What is quality?What is quality?

Quality is all about the features of a product or Quality is all about the features of a product or service which will satisfy the requirements of service which will satisfy the requirements of the consumer.the consumer.

A quality product or service has the features A quality product or service has the features which a buyer looks for in a product.which a buyer looks for in a product.

The producer believes that a quality product is The producer believes that a quality product is one which meets the standards set by the one which meets the standards set by the organisationorganisation

Possible quality features Possible quality features of a car for exampleof a car for example

How It looks How It looks ImageImage How many miles to the gallonHow many miles to the gallon ReliabilityReliability SuitabilitySuitability Value for moneyValue for money ExtrasExtras warrantywarranty

Why is quality important? – Why is quality important? – If you provide a poor quality If you provide a poor quality product what might product what might happen?happen? Sales may decreaseSales may decrease

Profit decreasesProfit decreases Less competitiveLess competitive Future products or other existing Future products or other existing

products may be affectedproducts may be affected Can lead to failure of the businessCan lead to failure of the business

How do organisations How do organisations ensure qualityensure quality

Methods of Quality controlMethods of Quality control Traditional Quality ControlTraditional Quality Control Quality AssuranceQuality Assurance Total Quality Management (TQM)Total Quality Management (TQM) Quality CirclesQuality Circles

Traditional Quality Traditional Quality ControlControl

Quality Control is the basis of all quality methods – Quality Control is the basis of all quality methods – began to be introduced in the 1940’s when firms were began to be introduced in the 1940’s when firms were becoming more competitivebecoming more competitive

Quality Inspectors employed to check other peoples Quality Inspectors employed to check other peoples work work

The products are checked once they have been The products are checked once they have been completedcompleted

Defective products are binnedDefective products are binned Expensive way to do things are there is a lot of Expensive way to do things are there is a lot of

wastage due to finished products being scrappedwastage due to finished products being scrapped

QUALITY ASSURANCEQUALITY ASSURANCE

This is all about trying to prevent poor quality This is all about trying to prevent poor quality products being produced in the first placeproducts being produced in the first place

Every worker is responsible for their own Every worker is responsible for their own quality – they quality inspect their own workquality – they quality inspect their own work

This means that at every stage of the This means that at every stage of the production process quality is checked – then it production process quality is checked – then it is checked at the end too- so leads to less is checked at the end too- so leads to less wastage wastage

Each worker or team of workers must be Each worker or team of workers must be satisfied with their part of the job before they satisfied with their part of the job before they pass it onpass it on

TOTAL QUALITY TOTAL QUALITY MANAGEMENT (TQM)MANAGEMENT (TQM)

““Getting it right first time – every time”Getting it right first time – every time” Quality is inbuilt into every aspect of the organisation – Quality is inbuilt into every aspect of the organisation –

from the cleaners right up to the Managing Director – from the cleaners right up to the Managing Director – everybody thinks qualityeverybody thinks quality

Everybody is responsible for creating quality in what Everybody is responsible for creating quality in what ever they do – everybody is striving to look for ever they do – everybody is striving to look for improvements to qualityimprovements to quality

Each production operator must think of the next person Each production operator must think of the next person as their customer and so provide them with a quality as their customer and so provide them with a quality productproduct

Customers opinions are sought and used to help Customers opinions are sought and used to help improve the product/serviceimprove the product/service

QUALITY CIRCLESQUALITY CIRCLES

Quality circles are part of TQM – important part Quality circles are part of TQM – important part of TQMof TQM

Small groups of people, they meet to discuss Small groups of people, they meet to discuss their work – discussions aimed at solving their work – discussions aimed at solving problems and improving qualityproblems and improving quality

Motivational – as workers involved in decision Motivational – as workers involved in decision making – if you have motivated workers they making – if you have motivated workers they will work hard and provide a quality product.will work hard and provide a quality product.

STOCK – BENEFITS TO STOCK – BENEFITS TO HOLDING STOCKHOLDING STOCK

GOODS ARE THERE WHEN THEY ARE GOODS ARE THERE WHEN THEY ARE NEEDEDNEEDED

IF YOU BUY IN BULK (LARGE IF YOU BUY IN BULK (LARGE AMOUNTS AT A TIME) – THEN YOU AMOUNTS AT A TIME) – THEN YOU MAY RECEIVE A DISCOUNT FROM MAY RECEIVE A DISCOUNT FROM YOUR SUPPLIER – this allows your YOUR SUPPLIER – this allows your company to be more profitable and company to be more profitable and competitivecompetitive

DRAWBACKS TO HOLDING DRAWBACKS TO HOLDING STOCKSTOCK

Stock may deteriorate – if you have stock for a Stock may deteriorate – if you have stock for a long period of time it may go off and not be as long period of time it may go off and not be as good quality – so your product may not be of good quality – so your product may not be of good qualitygood quality

Money tied up in stock – if you are holding Money tied up in stock – if you are holding more stock than you need then you are tying more stock than you need then you are tying up money that could be used elsewhere – even up money that could be used elsewhere – even keeping the money in the bank where it will keeping the money in the bank where it will gain interestgain interest

The costs of holding stock – insurance in case The costs of holding stock – insurance in case of fire or theft etc, warehousing, the more stock of fire or theft etc, warehousing, the more stock you keep the bigger warehouse, the bigger the you keep the bigger warehouse, the bigger the rent and security costs paying security firms rent and security costs paying security firms etc to protect the stock.etc to protect the stock.

STOCK CONTROLSTOCK CONTROL

Stock control is very important to Stock control is very important to successful production. It tries to ensure successful production. It tries to ensure that the right amount of stock is held – that the right amount of stock is held – NOT TOO LOW which could cause NOT TOO LOW which could cause production to stop, NOT TOO HIGH production to stop, NOT TOO HIGH which could cause a business to pay which could cause a business to pay unnecessary costs or see stock unnecessary costs or see stock deterioratedeteriorate

DECIDE HOW MUCH DECIDE HOW MUCH STOCK TO HOLDSTOCK TO HOLD

How quickly the stock is used – how How quickly the stock is used – how much is usedmuch is used

How long it takes for stock to be How long it takes for stock to be delivered by suppliers – lead timedelivered by suppliers – lead time

The shelf life of the stock – short shelf life The shelf life of the stock – short shelf life keep enough to keep you going and keep enough to keep you going and make regular ordersmake regular orders

How much space there is to hold stockHow much space there is to hold stock

STOCK RECORD KEEPINGSTOCK RECORD KEEPING

Careful records must be kept – ensuring no Careful records must be kept – ensuring no wastage, no theft and no money being tied upwastage, no theft and no money being tied up

Can use a database to keep a record of each Can use a database to keep a record of each type of stock being stored – in the database type of stock being stored – in the database you will be able to find out how much is left in you will be able to find out how much is left in stock, how often it is used, when to re-order stock, how often it is used, when to re-order new stock etcnew stock etc

Records can also be kept manually but they Records can also be kept manually but they are not so quick or efficient.are not so quick or efficient.

Levels of stockLevels of stock

Minimum Stock level – stock should not go Minimum Stock level – stock should not go below this level – if it does it could stop below this level – if it does it could stop productionproduction

Maximum Stock level – stock should not go Maximum Stock level – stock should not go above this if it does you are holding too much above this if it does you are holding too much stock and it is costing you moneystock and it is costing you money

Re-order level – takes into account lead time Re-order level – takes into account lead time and stops you from going below your minimum and stops you from going below your minimum levellevel

Economic Level – this is the best stock level – Economic Level – this is the best stock level – not too much and not too little.not too much and not too little.

JUST IN TIME (JIT)JUST IN TIME (JIT)

Fits into TQM and is the stock control method Fits into TQM and is the stock control method used by many TQM companies.used by many TQM companies.

This is where stock arrives just in time to be This is where stock arrives just in time to be used in production – no need to hold any stock used in production – no need to hold any stock – supplier will deliver to point of production so – supplier will deliver to point of production so that it can be used straight away.that it can be used straight away.

Producers produce just in time for customers to Producers produce just in time for customers to buy and so the finished goods get sent to buy and so the finished goods get sent to customers straight away – so company doesn’t customers straight away – so company doesn’t hold stock of finished goodshold stock of finished goods

Advantages of JITAdvantages of JIT

Removes the need to hold stock which is Removes the need to hold stock which is expensiveexpensive

Suppliers give assurances to the quality Suppliers give assurances to the quality of stockof stock

No costs of moving stock from the No costs of moving stock from the warehouse to production linewarehouse to production line

More space available for productionMore space available for production

Disadvantages of JITDisadvantages of JIT

Totally dependent on supplier – on Totally dependent on supplier – on quality and on delivery timequality and on delivery time

If deliveries don’t arrive – production If deliveries don’t arrive – production stopsstops

Might lose out on discounts for bulk Might lose out on discounts for bulk buyingbuying