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What are the key aspects of improving quality in a business?
Efficiency, reducing unit cost, and product improvement.
Name two reasons why setting operational objectives is important.
To increase productivity and to improve quality, allowing the business to meet deadlines and take on new orders.
What is excess capacity?
Excess capacity is when a business has production capacity that is not being utilized.
What are some benefits of implementing Just-In-Time (JIT) inventory management?
Stock is less likely to perish, and there are no warehouse costs.
What are some drawbacks of Just-In-Time (JIT) inventory management?
No buffer stock, inability to meet sudden increases in demand, heavy reliance on suppliers, and higher delivery costs since businesses can't benefit from economies of scale.
What factors determine the optimal mix of resources (labour, capital, enterprise) for a business?
The type of industry (labour or capital intensive), the type of product, the size of the business, and the finance available.
How can investment in technology improve efficiency in a business?
By enabling machinery on the production line to produce more in a shorter time, leading to cost reductions and increased flexibility.
What are some tangible measures of product quality?
Reliability, functions and features, support levels and standards, and the cost of ownership (e.g., repairs, buying process).
What are some intangible measures of product quality?
Brand image, exclusiveness, market reputation, and after-sales service.
What is the comprehensive definition of 'quality' for a business?
Quality is not just about the product; it includes the whole customer experience, meeting the needs and expectations of customers, and providing a product or service that is fit for purpose.
Name one direct benefit businesses can gain from achieving greater quality.
Businesses are able to charge higher prices.
How do marketing costs relate to higher quality products or services?
Higher quality leads to lower marketing costs due to increased customer loyalty and recommendations.
What is a significant outcome of higher customer satisfaction driven by quality?
Customer satisfaction provides a competitive advantage, leading to repeat purchases and customer recommendations.
What does quality aim to achieve regarding customer needs?
Quality aims to meet the needs and expectations of customers.
What is Quality Control (QC)?
A system that uses inspection as a way of finding any faults in a product or service at the end of the production process.
What are some features of Quality Control?
It's a traditional method, involves checking and reviewing output, often costly, detects rather than prevents issues, and assumes workers won't take responsibility.
What is a benefit of using Quality Control?
It can increase customer satisfaction because output is inspected, is useful when staff are low-skilled or new (as inspectors are needed), and ensures a smoother production line because trained inspectors can easily identify faults.
What is a drawback of using Quality Control?
It can be costly due to wasted resources, may demotivate employees, is reliant on a specific group of people rather than being everyone's responsibility, and can be time-consuming with more chances of defects reaching customers.
What is Quality Assurance (QA)?
A system that aims to improve quality at every stage of the production process to get the product 'right first time' and prevent mistakes from ever happening.
What are some features of Quality Assurance?
Quality is 'built in', the production process is designed to be reliable, and there is less need to inspect output.
What is a benefit of using Quality Assurance?
It ensures fewer defects and less waste, employees may feel motivated, and it promotes teamwork, breaking down 'them vs. us' culture, leading to greater efficiency.
What is a drawback of using Quality Assurance?
There is a higher chance of defective products being sold if the system isn't robust, it may distract employees (increased workload), production levels may initially fall as workers need training, and it can be costly to train all employees while assuming they want responsibility.
What is Total Quality Management (TQM)?
A management philosophy focused on continuous improvements of products and services with the involvement of the entire workforce.
What target do workers adopt in Total Quality Management (TQM)?
The target of getting it 'right first time'.
In TQM, who is responsible for quality?
The whole workforce, not just an inspector.
What is an advantage of TQM regarding customer focus?
It puts customers at the heart of the production process.
How does TQM benefit worker morale?
Workers feel more involved and are making decisions, which is motivational.
How does TQM reduce waste?
It is less wasteful than throwing out defective finished products because issues are addressed earlier.
What is a major organizational requirement for successful TQM implementation?
It requires strong leadership, which is often missing in a business.
What kind of investment does TQM require, and what is a challenge regarding its return?
Substantial investment in training and support is needed, but the return on investment is not immediate.
What is Kaizen primarily focused on in the context of quality assurance?
Focuses on 'continuous improvement'.
How does Kaizen achieve better quality and/or greater efficiency?
By making incremental (small) changes.
What role do workers play in the Kaizen method?
Workers are encouraged to identify possible ways of improving the operation of the business.