Quality Management (Edexcel A Level Business)

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 Control

Quality control

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

  • Benefits

    • Quality specialists are employed to check standards

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

  • Drawbacks

    • 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

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

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

  • Drawbacks

    • 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

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

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

  • Drawbacks

    • 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

    • Quality in all aspects of the business improves efficiency

    • A culture of constant improvement exists within the business

  • Drawbacks

    • All workers must be committed and receive significant continued training

    • Careful monitoring and control is required

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

Kaizen Versus 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