Quality

Learning objectives

• Candidates should have an understanding of customer expectations of quality.

• Work in pairs today

Starter. What are the consequences?

Does quality matter?

In your pairsWrite a list of productsThat as a customerYou would like to be able to trust the quality.

Be ready to share your list with the group

I Hope this is a quality

product!

Does quality matter?

• List of items

What is quality?

• Write down a definition in your notes:• Quality management is where a

business produces what customers need and want within budget and on time.

Can you rank quality?

• How does a business know what level of quality to produce?

• Watch the video on next slide

What is poor quality?

Discuss this in your pair and get ready with your answer...

Poor quality is ....

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• Customer service is hard to find (e.g.

telephone not answered)• Business employees appear rude or

uninterested in the customer

• Poor quality is when a product does not meet customer expectations

What are the costs of poor quality?

• In your pair discuss what the costs to a business might be of producing a poor quality product or service.

Costs of poor quality

– Lost customers (expensive to replace – and they may tell other people about their bad experience)

– Cost of reworking or remaking product– Costs of replacements or refunds–Wasted materials

Customer expectations

• Think about your needs and expectations as a customer when you buy a product or service. These may include:– Performance– Appearance– Availability– Delivery– Reliability– Price

• In your pair give an example of each. E.g. Performance (car)

Performance

• Your need as a customer may be to have 220 BHP and travel from A to B fast in style. You are looking for a performance car.

Appearance

Your needs as a customer may be to have a watch that looks good, the appearance of quality is important to you

Availability

delivery

You order a product on ebay and want it delivered on time, a fancy dress outfit for red nose day for example. But it doesn’t arrive on time.

Reliability

You start a job and its important to get to work. You get in your car in the morning and the car doesn’t start. A reliable vehicle may be critical in the future.

Price

Demand for petrol does not change even if the price rises, so people will drive miles to get to a cheaper petrol station.

Quality

• Quality is one of the key decisions in operations in today’s highly competitive global market.

• Vital to increase profits, reduce costs and improve customer satisfaction.

• Difficult term to define as it can mean different things to different people.

Quality from a customer viewpoint

• Customers want a quality product right for the price paid

• Customers judge quality on the extent to which it satisfies their needs and wants

With a watch as well as wanting it to tell the time customers may want a status symbol

What do customers want?

• Discuss in your pair – what do customers want...• From a car?• From a smartphone?• From a pair of trainers

Quality from a business viewpoint

• Want to meet customers needs• Want to satisfy customers• Don’t want customer complaints• Why?

• Interflora complaint

How does a business achieve quality?

• Producing products of the required quality does not happen by accident

• There has to be a production process which is properly managed

• Ensuring satisfactory quality is a vital part of the production process.

• Quality management is concerned with controlling activities with the aim of ensuring that products and services are fit for their purpose and meet the specifications

• There are two main parts to quality management– Quality assurance– Quality control

Quality Assurance

• Quality assurance is about 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

• The focus of quality assurance is, therefore on the product design/development stage

• Why focus on these stages?– 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)

Quality control

• Quality control is the traditional way of managing quality• Quality control is concerned with checking and reviewing

work that has already been done• For example, quality control includes:

– Inspection– Testing– Sampling.

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

• Quality control can also be a very expensive process. Hence, in recent years, businesses have focused on quality management and quality assurance.

Quality control

• May involve sampling the product to see if quality is consistent

• May mean looking at data to see if quality is consistent

Total Quality Management (“TQM”)

• TQM is essentially an “attitude”• Whole business understands need for

quality and seeks to achieve it• Everyone in workforce s concerned

with quality at every stage of production process

• Quality is checked by workers and not inspectors

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=v_V4KXtzuDwFkM&tbnid=0E6IKrX2Nm_a_M:&ved=0CAUQjRw&url=http://www.kbmanage.com/concept/total-quality-management&ei=S4FFUf-jIIPy0gXWgYHgAw&bvm=bv.43828540,d.d2k&psig=AFQjCNGjfmQvtA6XFgnup0tDhkUH3XCjGw&ust=1363595966570791

Get ready

• Read through your notes and get ready for a 10 question quiz...

Quiz

• 1 Does quality matter and why?• 2 What is quality?• 3 What are the costs of poor quality• 4 What are the 6 customer expectations?• 5 What is quality from a customers viewpoint?• 6 What is quality from a business viewpoint?• 7 How does a business achieve quality?• 8 What is quality control?• 9 What is Quality Assurance?• 10 What is TQM?