Ensuring Consistent Quality (AQA GCSE Business)

Revision Note

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Total Quality Management (TQM)

  • Total quality management is a whole-business approach to ensuring quality, with the aim of eliminating problems before they occur

  • All employees are involved in ensuring quality is achieved in every business process

  • Inefficiency and waste are removed from every business activity or function, including those that are not directly related to production

  • Features of TQM include:

    • Teamwork as a key way to solve problems

    • Zero defects, the business culture of ‘getting it right first time’

    • Ongoing monitoring of quality standards using statistical measures

      • e.g. Defect rate, reject rate etc

    • A focus on meeting changing customer needs

    • Committed workers who receive ongoing training

Evaluation of TQM


Advantages


Disadvantages

  • Quality in all aspects of the business improves efficiency, which should lead to improved profitability

  • A positive culture of constant improvement and high standards exists throughout the business

  • Recruitment must be managed well to appoint workers who are committed and willing to engage in significant continued training

  • Careful monitoring and control are required by managers capable of setting a good example

Methods of Maintaining Consistent Quality

  • Consistent quality means that products always meet expected standards

    • Maintaining consistency as a business grows is particularly challenging, as it may franchise its brand or use subcontractors to complete tasks on its behalf

  • Businesses can take a range of steps to improve the consistency of quality

Diagram: Ways to Improve Quality Consistency

Consistency of quality can be improved by training and involving employees, working with suppliers and careful inspection

Inspection of work in progress and finished goods

  • Checking the quality of products during manufacturing processes and once products are finished

    • If quality problems are identified during the process, it may be possible to rework products to reduce waste

    • Quality checks play a significant roles in preventing defective products reaching customers

    • Specialist inspectors may be employed to carry out these tasks

Staff training

  • Training staff to improve their working practices and focus on expectations, as well as ways to correct errors, can reduce quality issues

  • Staff that feel valued are more likely to engage in efforts to improve quality

Working with suppliers

  • Developing close working relationships with trusted suppliers is likely to lead to better quality raw materials and components being delivered

  • Sharing quality standards with suppliers and raising quality issues promptly can reduce the instances of defective materials entering production processes

Using IT systems

  • Automation can speed up quality inspection and reduce the chance of human error

  • Very precise checks can be carried out using closely calibrated sensors, meaning defects undetectable by humans can be identified

Involving all workers

  • Making quality the responsibility of all staff embeds a culture of quality within a business

  • Kaizen and TQM teams can operate across business departments, sharing their knowledge of and solutions to quality issues

Zero tolerance for defects

  • Setting clear targets that focus on achieving excellent output, first time and every time

  • By refusing to accept any level of defects in materials, components or finished goods, employees focus on the causes of quality issues rather than managing the effects

Costs & Benefits of Maintaining Quality

  • Maintaining high quality can provide significant long-term benefits to a business

Benefits of Maintaining High Quality


Benefit


Explanation

Customer satisfaction and loyalty

  • High-quality products are likely to satisfy customers

  • This can result in repeat business, positive word-of-mouth promotion, and a loyal customer base

  • The business may gain a competitive advantage and be able to maintain or grow its market share

Higher profit margins

  • Businesses known for their quality can often charge high prices for their products

  • This can help them achieve increased revenue

  • Lower levels of wastage reduces business costs

  • These factors can lead to higher profit margins

Brand reputation and recognition

  • A reputation for quality can improve the brand image of a business, making it more recognisable and respected in the market

  • This can attract new customers as well as potential investors and high-quality employees

Employee pride and motivation

  • Employees take pride in being associated with a high-quality brand

  • This can boost their morale, improve their engagement, and increase productivity

  • However, improving systems to achieve greater quality consistency can be costly

Costs of Improving Quality


Cost


Explanation

Production costs

  • Better-quality output may be achieved by installing and maintaining expensive production equipment

  • Waste levels may rise in the short-term as previously undetected quality issues are identified

Supply costs

  • Maintaining high quality often requires the use of better raw materials and components, which are often more expensive

  • New suppliers may be identified and contracts negotiated

Inspection costs

  • Specialist inspection staff may be required to carry out quality checks

  • Staff are likely to need ongoing training to ensure they are capable of taking on responsibility for quality

Examiner Tip

Candidates often mix up quality control and TQM. Quality control usually involves inspection of finished goods at the end of the production process, while TQM is a whole-company approach that identifies quality concerns throughout the whole production process.

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