Quality Management (Edexcel A Level Business) : Revision Note

Quality management methods

• Quality considers the characteristics and features of a product that satisfy the needs of customers

• Businesses need to maintain a level of quality that continues to attract and retain customers

• There are a number of approaches to managing quality in the production process

Methods of quality management

Continuous improvement (Kaizen)

• 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 rather than significant one-off’s and are constantly reviewed to ensure that the desired positive impact on productivity is achieved

Comparison of kaizen and one-off improvements

• Elements of Kaizen commonly include

  • 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

• Kaizen requires a long-term management commitment to change 

Competitive advantage from quality management

• The quality of a businesses products can provide a competitive advantage

  • Unit costs are likely to be low if a business takes a preventative approach through the use of quality assurance or TQM

    • Low costs may allow a business to reduce its selling price to better compete with or undercut its rivals

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

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

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