Economic growth in country X has created many opportunities for new businesses such as TGH. TGH manufacture a range of personalised mobile (cell) phone cases using job production. Quality assurance is important to all 8 employees. TGH operate in a niche market. The Marketing Manager uses e-commerce as TGH’s channel of distribution. She is considering ways to build customer relationships.
Define ‘quality assurance’.
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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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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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State two factors that affect customer perceptions of quality.
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Identify two disadvantages of using a system of quality assurance.
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Define 'Total Quality Management (TQM)'.
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Identify two risks to a business of failing to maintain quality.
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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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Explain four reasons why quality is important to a business.
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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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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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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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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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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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