Quality Management Strategies: TQM, Quality Assurance, and Quality Control

Quality Management Strategies: TQM, Quality Assurance, and Quality Control

Key Concepts

  • Knowledge: Strategies to improve efficiency and effectiveness of operations related to quality.

    • Quality control.

    • Quality assurance.

    • Total Quality Management.

  • Skills:

    • Compare and evaluate strategies used in operations management.

    • Propose and justify strategies for improving the efficiency and effectiveness of operations.

Quality Definition

  • Quality refers to the “excellence” of a product and the degree to which it meets customer needs and expectations.

  • Quality is a good or service’s ability to satisfy a customer’s needs and achieve its designed purpose.

Measuring Quality

  • Measured by:

    • Reliability

    • Durability

    • Delivery time

    • Consistency of the product

  • Businesses aim to improve the quality of their goods or services.

Link to Efficiency and Effectiveness

  • Output quality reflects input and process quality.

  • Improved reputation and competitiveness lead to effectiveness.

  • Correct procedures improve quality; fewer inputs are needed per output, reducing waste and increasing efficiency.

Importance of Quality Management

  • Businesses must abide by laws protecting customers from faulty products/services (e.g., Australian Consumer Law).

  • Consumer groups (e.g., Choice) highlight businesses with low-quality products/services.

1. Quality Control

  • Definition: The use of physical checks at different stages of the production process to ensure that products and services consistently meet designated standards.

  • This strategy is reactive, detecting or eliminating defects after they occur.

How is it Performed?

  • On the production line: A station tests every product for a characteristic (e.g., worker inspecting Yakult bottles).

  • In the lab: A sample of the product is tested (e.g., inspectors check the level of bacteria in a bottle of Yakult).

Quality Control Process Steps

  • Benchmarks set

  • Inspections conducted

  • Comparisons made against benchmark

  • Correction action taken

  • Cause of error is fixed

Steps in Detail

  1. Standards or benchmarks are set for quality (e.g., bottle screwed on properly, bottle filled up to a certain level).

  2. Actual performance is measured through regular inspections being conducted (e.g., physical checks made at Yakult for quality of bottle, bottles correctly sealed).

  3. Comparisons of actual performance are made to set standards, with faulty products rejected.

  4. Corrective action taken removal of products that don’t meet standards.

  5. The cause of the error fixed to prevent future errors from happening.

Quality Technicians/Specialists

  • Quality control requires employing and training technicians or specialists expert at meeting quality standards (e.g., specialists working on the production line, specialists that assess the level of bacteria in Yakult).

Real World Example - Quality Control - Yakult

  • Yakult implements quality control at its Victorian factory, where employees inspect the drink, bottles, and packaging.

  • Tests include examining microbiological quality, composition, and taste.

  • Individual bottles are randomly inspected for incorrect printing, undesirable markings, and seals on the lid.

  • Between 100 and 200 bottles are inspected daily.

Examples of Quality Control

  • Manufacturing: Yakult examines the product at various stages along the production process to ensure Yakult is standardized and hygiene standards are met.

  • Service: A retailer may use a mystery shopper to check the quality of customer service (e.g., cleanliness of store, wait times, sales skills).

The Effect of Quality Control

  • Efficiency:

    • Identifying and fixing the cause of an error prevents it from reoccurring, reducing waste.

    • Reducing the number of potential errors that could halt production enables continuous flow.

  • Effectiveness:

    • Eliminating errors prevents customers from receiving faulty products, satisfying them and increasing sales.

Quality Control - Advantages and Disadvantages

  • Advantages:

    • Inspectors are specialists well-trained to identify defects (or technology has a high accuracy rate).

    • Less likelihood of defective products reaching consumers, improving reputation, sales & market share.

    • Very suitable for manufacturing businesses.

  • Disadvantages:

    • A reactive approach to improving quality can be costly due to waste.

    • Time-consuming to carry out inspections.

    • May be costly to hire and train specialists/technicians.

Quality Control - Business, Employee, Time, Money

  • Advantages:

    • Preventing customers from receiving a faulty good or service can improve a business's reputation.

    • Can reduce the number of refunds required for faulty goods or services.

    • The strategy is relatively inexpensive as it is internally controlled by the business.

  • Disadvantages:

    • Businesses can develop a poor reputation as environmentally harmful as this strategy does not actively attempt to reduce waste.

    • Unless every product is inspected, inferior goods may still reach a customer and lead to a reputation for poor quality.

    • It can be time-consuming to identify the causes of errors.

    • Errors are eliminated after they happen which can incur costs associated with waste.

2. Quality Assurance

  • Involves achieving a level of quality that is defined by an independent body.

  • These specified standards are set out for the industry and apply throughout the world.

  • Organizations that meet quality assurance standards obtain certification or endorsement.

  • QA is a proactive process.

  • Achievement of certification entitles an organization to display certification marks.

ISO - International Organisation for Standardization

  • An example of an independent body that sets quality standards

  • They have quality standards such as ISO9000 and ISO9001 that, if met, can enable the business to have a quality-endorsed logo on their product:

ISO standards

  • The most common standard is the ISO 9001 certification

  • The aim of this set of standards is for businesses to achieve conformity of goods and services while consistently meeting customer needs and expectations.

  • More than one million companies and organizations are certified to ISO 9001.

Real world example - Quality assurance - Yakult

  • Yakult has implemented quality assurance by gaining endorsement from 'Hazard Analysis and Critical Control Points' (HAACP).

  • HAACP is an internationally recognized certification for food and public health specifications.

  • The HAACP certification is a proactive approach to food safety as they check that Yakult's operations systems are safe from biological, chemical, and physical hazards.

  • To achieve and maintain HAACP certification, Yakult implemented procedures such as requiring all operations employees to wear hair nets and beard nets to enclose all hair.

Quality Assurance involves

  • A business must submit reports that detail the strategies they have used to meet the standards set out by the independent organization.

  • They may also be subject to regular audits (an official inspection of a business by an external body).

The effect of Quality Assurance

  • Efficiency:

    • Preventing errors before they occur reduces the number of faulty products produced, which reduces the amount of waste generated.

    • Preventing errors before they occur reduces the number of halts to production occurring due to finding and fixing causes of faulty products.

  • Effectiveness:

    • Customers are more likely to purchase a good or service with a certified standard of quality which can meet the objective of increasing a business's number of sales.

QUALITY ASSURANCE - advantages and disadvantages

  • Advantages:

    • The business obtains a certification which can be displayed on their products, improving their competitive advantage and market share

    • This is a proactive approach that aims to identify flaws in the production process before they occur, reducing wastage in the form of defects

  • Disadvantages:

    • There is a heavy emphasis on documentation which may make this process time-consuming and costly to maintain certification

    • External audits can also be time-consuming and disrupt productivity

Quality Assurance - Business, Employee, Time, Money

  • Advantages:

    • Quality assurance reduces waste from errors, which improves the environmental reputation of a business.

    • Receiving external certification from an external body can improve a business's competitiveness as customers are likely to have increased confidence in the business.

    • Workplace standards implemented to achieve external certification are likely to improve the safety of the workplace.

    • A reduced number of errors enables production to flow smoothly.

    • The proactive prevention of errors can reduce waste and its associated expenses.

    • Can be used as a marketing tool to increase sales.

  • Disadvantages:

    • Employees may have to be trained and comply with the new procedures.

    • Documenting the operations system for the external body to check could be time-consuming.

    • It can be expensive to organize an external body to assess an operations system.

Total Quality Management (TQM)

  • Definition: TQM is a whole organization commitment to improving quality.

  • TQM is a holistic approach where all employees are committed to continuously improving a business’s operations system to enhance the quality for its customers.

  • This means that quality is a responsibility of every employee, not just the managers.

  • This is a proactive approach to improving quality.

Three features of TQM

  • Customer focus – a business considers the customers needs and wants, and aims to satisfy them. Customer satisfaction is an indicator of quality, as well as the success of TQM. The whole organization is committed to improving customer satisfaction.

  • A belief in continuous improvement - the process of constantly evaluating current methods and implementing better methods if needed. This belief is shared by all employees.

  • Employee empowerment or involvement in improving quality (this would be indicated by corporate culture). Quality circles are one way to achieve this – where employees/teams meet to solve quality-related problems. All employees would have an opportunity to participate

Yakult & TQM

  • Yakult doesn’t have an official TQM program but through meeting it is done informally.

  • Staff are given opportunities to share ideas and suggestions.

The effect of TQM

  • Efficiency:

    • Continuously improving the quality of the production system to prevent errors reduces the number of faulty products that go to waste.

    • Reducing waste is an optimal use of resources.

  • Effectiveness:

    • By determining the needs and wants of a customer, TQM can meet the objectives of improving customer satisfaction and increasing sales.

Total quality management - advantages and disadvantages

  • Advantages:

    • It is a proactive system that aims to remove all faults or errors before production occurs

    • Due to employee involvement and focus on continuous improvement, employees feel empowered to improve quality. Can also have positive impacts on corporate culture due to shared responsibility.

    • This is a proactive approach that aims to identify flaws in the production process before they occur, reducing wastage in the form of defects

  • Disadvantages:

    • May require a lot of meetings (e.g., quality circles) which can be time-consuming and decrease productivity

    • All staff will need to be trained in meeting quality standards which may be time-consuming and costly

    • There may be some resistance from employees who do not want to participate in a business-wide approach to improving quality

Total Quality Management - Business, Employee, Time, Money

  • Advantages:

    • A business can adapt TQM to suit their specific business requirements.

    • Improves a business's reputation by having a minimal impact on the environment. This reputation is achieved as TQM aims to prevent errors from occurring altogether which reduces the amount of waste from defects.

    • Employees may feel valued and satisfied by being empowered in the process of improving quality.

    • Being proactive prevents errors from occurring which reduces waste and its associated expenses.

  • Disadvantages:

    • Employees may feel confused about their role in improving quality if managers fail to communicate the TQM strategy clearly.

    • It can take a long time for a business to enjoy the benefits of TQM as it requires a shift in culture.

    • May incur costs as employees have to be trained to continuously identify methods to improve quality.

Comparing: similarities

  • All strategies are methods used to improve the quality and excellence of the products of a business

  • All strategies involve corrective action to try and improve the level of quality

  • All require employee involvement to improve quality

Comparing: differences

  • Reactive vs proactive

  • Whole organization approach vs targeted by a particular group of employees

  • Certification vs no certification

Comparing specific Quality Strategies

Similarities:

  • Shared Goal: All three (TQM, Quality Assurance, Quality Control) aim to improve product/service quality to meet or exceed standards and customer expectations.

  • Corrective Actions: Each strategy involves identifying and fixing errors to enhance quality continuously.

  • Employee Involvement: Employees play a crucial role in maintaining and improving quality across all strategies.

Differences:

  • Approach:

    • Quality Control: Reactive; detects defects after they occur.

    • Quality Assurance: Proactive; prevents defects by adhering to set standards.

    • TQM: Proactive; continuous improvement via organization-wide commitment.

  • Scope:

    • Quality Control: Targeted; performed by specific technicians/specialists.

    • Quality Assurance: Organization-wide; follows standards for certification.

    • TQM: Organization-wide; shared responsibility for continuous improvement.

  • Certification:

    • Quality Control: None; internally controlled.

    • Quality Assurance: External certification (e.g., ISO).

    • TQM: No formal certification; success measured by customer satisfaction.