Quality management

Quality control

Inspecting the quality of output at the end of the production process

Benefits of Quality Control

• Quality specialists are employed to check standards

• An inexpensive and simple way to check that output is fit for purpose

Drawbacks of Quality Control

• The rejection of finished goods is a significant waste of resources 

• There is little focus on the cause of defects

Quality assurance

Inspecting the quality of production throughout the production process

Benefits of Quality assurance

• Quality issues are identified early so products may be reworked rather than rejected- less wasteful

• The cause of defects is the focus so future quality issues may be prevented

Drawbacks of Quality assurance

• Staff training and a skilled workforce is required so labour costs may be increased

• Reworking may lengthen the production process

Quality Circles

Groups of workers meet regularly to solve quality problems identified in the production process

Benefits of Quality Circles

• Workers may be motivated as they are involved in decision making

• Relevant and focused solutions are likely as workers are familiar with processes

Drawbacks of Quality Circles

• Management need to have trust in workers’ views and solutions 

• Meetings and structures must be organised regularly

Total Quality Management (TQM)

Organisation of the business with quality at its core and with every worker responsible for quality

Benefits of Total Quality Management

• Quality in all aspects of the business improves efficiency

• A culture of constant improvement exists within the business

Drawbacks of Total Quality Management

• All workers must be committed and receive significant continued training

• Careful monitoring and control is required

Kaizen

Involves a business taking continuous steps to improve productivity through the elimination of all types of waste in the production process- changes are small and ongoing

Elements of Kaizen

• Total Quality Management

• Just in Time stock management

• Teamwork and quality circles

• Zero defects in manufacturing

• High levels of automation

• High levels of cooperation between workers and management

Competitive Advantage from Quality Management

• Low unit costs likely if business takes preventative approach through use of quality assurance or TQM → can charge lower prices → more competitve

• High levels of quality can be used in promotional activity and provide a USP for businesses in competitive markets

• USP for good quality can ease expansion into new markets as a result of the positive reputation it creates

• Increased finance may be available to fund marketing activity to improve brand recognition and attract new customers