12 marks
Define ‘quality assurance’.
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Quality Management (Cambridge (CIE) IGCSE Business)
Exam Questions
1 hour14 questions21 mark
Case Study
SWB is in the secondary sector. It produces 150 000 wooden bookcases each week using batch production. SWB sells all its output to one customer. Quality control is important. SWB has 240 employees, of which 100 are part-time workers. SWB’s managers use noticeboards around the factory and meetings with employees every month to help reduce communication barriers. The Operations Manager is considering introducing just-in-time inventory control to reduce the amount of waste.
Outline one advantage and one disadvantage to SWB of using quality control.
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34 marks
Case Study
WLT manufactures carpets. It exports 40% of its products. Globalisation has created opportunities and threats for WLT. Its method of production allows WLT to use specialisation. All of its 60 employees understand that quality assurance is important. WLT’s directors are considering the best way to increase efficiency.
Outline two advantages to WLT of using quality assurance.
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42 marks
State two factors that affect customer perceptions of quality.
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52 marks
Identify two disadvantages of using a system of quality assurance.
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62 marks
Define 'Total Quality Management (TQM)'.
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72 marks
Identify two risks to a business of failing to maintain quality.
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16 marks
Case Study
SSG manufactures mobile (cell) phones using batch production. Quality control is important. SSG has 130 employees who all receive on-the-job training. The Marketing Manager is analysing cost and output data for product X. An extract is shown in the below table. As product X is in the maturity stage of the product life cycle SSG is considering possible extension strategies.
Extract from SSG’s cost and output data for product X | |
Rent and other expenses per month | $300 000 |
Variable cost per unit | $80 |
Output per month | 12 000 |
Explain one advantage and one disadvantage to SSG of using quality control.
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28 marks
Explain four reasons why quality is important to a business.
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36 marks
Do you think quality control is the best method for a manufacturing business to use to achieve quality production? Justify your answer.
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46 marks
Case Study
Izaak owns a small fish restaurant. He employs two chefs (cooks) and three workers who serve in the restaurant.
Izaak has been trying to increase added value to improve profits. Izaak has been looking at the financial performance of his business. An extract is shown in the below table Izaak has received a number of complaints about food and service. He knows he must improve quality but cannot decide on the best way to do this.
Extract from income statements ($000)
Last year | Current year | |
Revenue | X | 300 |
Cost of sales | 180 | 150 |
Gross profit | 120 | 150 |
Expenses | 90 | Y |
Profit | 30 | 15 |
Explain two problems that low quality might cause Izaak’s business.
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112 marks
Consider the following two ways PH could ensure quality production.
Quality control
Quality assurance
Which way should PH choose? Justify your answer.
Refer to the following insert when answering the question.
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212 marks
State the advantages and disadvantages of the following three ways to achieve good quality service at the health spa:
only employ highly trained workers
record all customer complaints
buy only the best quality materials to use in the health spa.
Which do you think is the most important way? Justify your answer.
Refer to the following insert when answering the question.
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312 marks
Explain the benefits and limitations of the following two ways of achieving quality production.
Quality control
Quality assurance
Which way should CC use? Justify your answer.
Refer to the following insert when answering the question.
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