Achieving quality

production
Chapter 20
Objectives

● Understand what quality means and why it is important for all businesses
● Explain the concept of quality control and how businesses implement quality
control
● Understand the concept of quality assurance and how this can be
implemented
Key terms

● Quality
● Quality control
● Quality assurance
● Total quality management (TQM)
What quality means and why it is
important for all businesses
● Must match:
○ Customer expectations
○ Brand image
● Important as it:
○ Ensures satisfaction
○ Builds loyalty
○ Builds/maintains image
○ Improves reputation
○ Can lead to increased sales
○ Can charge higher prices
○ More competitive
○ Fewer customer complaints
Quality control

● Finished products must be checked

● Need to meet minimum standard
● Poor quality leads to:
○ Repair costs
○ Damage to reputation
Quality control

● Trained inspector tests every finished product or samples from each batch
● Faulty items are discarded or sent to repair
● Takes time and money
● Made at the end of the process
○ Could mean many faulty products
Quality control

Advantages Disadvantages

● Tries to eliminate faults before ● Inspectors are expensive

customers receive ● Identifies faults but doesn’t find
● Less training is required for where they occurred
workers ● High costs if products must be
scrapped or reworked
Quality assurance

● All employees encouraged to check constantly

● This should:
○ Prevent mistakes
○ Lower unit costs as there is less wastage
○ Improve motivation
● Drawbacks:
○ Slow process
○ Requires lots of training and support
Total quality management

● Creates culture of quality

● All employees encouraged to think of customer needs at all times
● Linked to Kaizen
● Makes use of quality circles
○ Groups of employees discuss quality of product
Total quality management

Advantages Disadvantages

● Quality built into every part of ● Expensive to train all employees

production ● Relies on employees following
● Eliminates all faults/errors before TQM and accepting responsibility
customer receives
● No customer complaints
● Improved brand image
● Waste removed
● Efficiency increases
How can a customer be assured of a
quality product or service
● Look for the quality mark
● Must follow certain rules to keep mark
● Internal Organization for Standardization (ISO) is one example
● Also important for services even though no product quality mark
○ Tripadvisor, Google reviews, etc.
Progress check I

Raj owns a successful restaurant in the city center. He employs 8 cooks and 16
servers. Last year, revenue increased by $30,000. Raj believes providing a quality
service is important to remain competitive.

1. Define quality control.

2. Explain two reasons why quality might be important to Raj’s business.
3. Explain two ways in which Raj can try to ensure that the restaurant provides a
quality service.
Progress check II

1. What does quality mean to you?

2. What is the difference between quality control and quality assurance?
3. Identify two problems that poor quality can cause.
4. When does quality assurance happen?