1. Managing Quality

2. What this topic is about

Meaning and importance of quality

Quality control compared with quality assurance

Approaches to monitoring and improving quality

3. The Business Need for Quality

Quality is one of the most important challenges facing a business

Markets are more competitive: customers are more

• Knowledgeable

• Demanding

• Prepared to complain about poor quality

• Able to share information about poor quality (e.g. via email & social networking)

If a business can develop a reputation for high quality, then it may be able to create an advantage over its competitors

4. What is Meant by Quality?

Quality is aboutmeeting the needs and expectations of customers

Customer needs & expectations: e.g.

• Performance (fit for purpose)

• Appearance

• Availability & delivery

• Reliability / durable

• Price / value for money

If a product or service meets all those needs - then it passes the quality test

If it doesn't, then it is sub-standard

5. Examples of Poor Quality

Product fails e.g. a breakdown or unexpected wear and tear

Product does not perform as promised

Product is delivered late

Poor instructions/directions for use

Unresponsive customer service

6. Costs of Poor Quality

Many costs of poor quality, including:

• Lost customers (expensive to replace and they may tell others about their bad experience)

• Cost of reworking or remaking product

• Costs of replacements or refunds

• Wasted materials

Poor quality is a source of competitive disadvantage

• If competitors are achieving higher quality, then a business will suffer

7. Quality Management

Achieving high quality does not happen by accident

The production process must be properly managed

Quality management:

• Concerned with controlling activities with the aim of ensuring that products and services are fit for their purpose and meet the specifications

Two main approaches

• Quality control

• Quality assurance

8. Quality Control - Definition The process of inspecting products to ensure that they meet the required quality standards 9. Quality control (1)

Traditional way of managing quality

Concerned with checking and reviewing production

Quality control is mainly about "detecting" defective output - rather than preventing it

Quality control can be a very expensive process

10. Quality control & Inspection

When raw materials are received prior to entering production

Whilst products are going through the production process

When products are finished - takes place before products are despatched to customers

Three main points in production when inspection is used in quality control 11. Problems with quality inspection

Costly

Often at the end of the production process i.e. too late

Inconsistent inspections

Often not compatible with modern production systems

Done by inspectors rather than workers themselves

12. Quality Assurance - Definition The processes that ensure production quality meets the requirements of customers 13. Quality Assurance (1)

How a business can design the way a product of service is produced or delivered to minimise the chances that output will be sub-standard

Focus of quality assurance is on the product design/development stage

• If the production process is well controlled - then quality will be "built-in

• If the production process is reliable - there is less need to inspect production output (quality control)

14. Quality Assurance v Quality Control Quality Assurance Quality Control Focus on processes Focus on outputs Achieved by improving production processes Achieved by sampling & checking (inspection) Targeted at the whole organisation Targeted at production activities Emphasises the customer Emphasises required standards Quality is built into the product Defect products are inspected out 15. TQM Approach to Quality Assurance A management philosophy committed to a focus oncontinuous improvementsof product and services with theinvolvement of the entire workforce 16. Total Quality Management (TQM)

TQM is essentially an attitude

Whole business understands need for quality and seeks to achieve it

Everyone in workforce is concerned with quality at every stage of production process

Quality is ensured by workers and not inspectors

17. Advantages of TQM

Puts customer at heart of production process

Motivational since workers feel more involved and are making decisions

Less wasteful than throwing out defective finished products

Eliminates cost of inspection

18. Disadvantages of TQM

Requires strong leadership often missing in a business

Substantial investment in training & support but return on investment not immediate

May become bureaucratic

Disruption and costs may outweigh benefits

19. Test Your Understanding http://www.tutor2u.net/business/quiz/quality/quiz.html 20. Managing Quality