Operations Management - Quality

Operations Management Quality Control & Assurance

Learning Outcomes

  • I6: Analyse the importance of quality

  • I7: Explain the difference between quality control and quality assurance as methods for achieving quality.

  • I8: Evaluate the costs and benefits of Total Quality Management (TQM) on business.

Objectives

  • Define Quality.

  • Examine the importance of quality.

  • Explain the difference between quality control and quality assurance.

  • Define TQM.

  • Evaluate costs and benefits of TQM on business.

What is Quality?

  • Quality refers to features of a good or service that meet customers’ expectations and thus are considered ‘fit for purpose’.

  • A quality product is not necessarily the 'best' but aligns with customer expectations, which can vary by price and item type.

Increasing Importance of Quality

  • The importance of quality has surged due to:

    • Wider product range available to consumers.

    • Increased disposable income leading to higher consumer expectations.

    • Legislative measures and competition forcing companies to enhance product quality.

Key Business Concerns

  • Businesses are focused on improving quality due to:

    • Design: Ideas and plans behind products/services.

    • Production processes: Methods of manufacturing goods or delivering services.

    • Costs associated with poor design or faulty products can be substantial, necessitating time-intensive redesigns.

Approaches to Achieving Quality

  • Quality Control vs. Quality Assurance:

    • Two distinct approaches for ensuring quality output in businesses.

Quality Control

  • Definition: Quality control emphasizes inspection/checking of completed goods/services during production.

  • Example: Testing a mobile phone's battery at the production line's end.

Techniques in Quality Control

  • Three Stages:

    1. Prevention: Most effective in improving quality.

    2. Inspection: Traditionally important but incurs high costs.

    3. Correction and Improvement: Focus on correcting the process, not just faulty products.

Limitations of Quality Control

  • Takes quality responsibility away from workers, causing demotivation and the perception that quality isn't part of their task.

  • Overemphasis on inspection can result in decreased quality overall.

Quality Assurance

  • Definition: Ensures agreed quality standards throughout production, focusing on customer satisfaction.

  • Emphasizes preventing problems rather than finding defects post-production.

Key Components of Quality Assurance

  • Systems: Involve all staff, enhance teamwork, and set quality standards at all production stages.

  • Benefits: Reduces final inspection costs and promotes motivation among workers.

  • Accreditations: Businesses can gain significant recognition by adhering to quality assurance practices.

Total Quality Management (TQM)

  • Concept: TQM is a philosophy asserting that quality is everyone's responsibility across the organization.

TQM Principles

  • Promotes a culture of continuous quality improvement.

  • Workers at all levels must see the quality of their work as important to empower improvement efforts.

Implications of TQM

  • Approximately one-third of efforts in British businesses involve error correction, showcasing TQM's potential impact in reducing waste.

  • Requires cultural change within the organization for effective implementation.

Advantages of TQM

  • Encourages a zero-defects approach, reducing costs associated with faulty products.

  • Strengthens competitive position through improved product quality, leading to customer loyalty.

  • Enhances productivity and market image while minimizing wastage and operational costs.

Disadvantages of TQM

  • Requires cultural change, which might be challenging.

  • Time-consuming implementation process, requiring careful evaluation and quality improvement.

  • Training and adaptation can be costly and take years to show results.

TQM Conclusion

  • Effective implementation of TQM hinges on organization-wide commitment.

  • Requires senior management's support for empowerment; cannot succeed in overly rigid structures.

Distinction Between QC, QA, and TQM

  • Quality Control: Focused on defect identification at the end of production.

  • Quality Assurance: Prevention-focused, ensuring quality standards before defects arise.

  • Total Quality Management: Holistic approach, embedding quality in every facet of organizational culture and process.