2.4.4 Quality Management

Quality control

🔗 Quality inspectors check the standard of a product and the requirements of customers once it has been

• Inspectors are external, with no bias from workers towards their own products. Also, specialists, ensure all quality standards are met with full accuracy
• Unlike quality assurance, prevents time from being wasted during operations
• External inspectors may have a large fee, opportunity cost if workers are able to check for the same faults at no extra cost

Quality assurance

🔗 The process of constantly self-checking the standard of a product meets the requirements of customers

• Aim of zero defect
• Makes workers feel valued and responsible for their product, job enrichment, higher motivation, more commitment, less mistakes, checks are likely to be accurate
• No requirement for inspectors who charge a fee, money can be invested in kaizen to improve product quality gradually
• Constant self-checking delays the production process, reduces the output a business can produce, higher cost per unit from lower output with the same inputs, less cost competitive, lower profit margins
• Worker checks may not be as thorough as an inspector's, may miss a fault, lower customer satisfaction, weakens brand loyalty

Quality circles

🔗Small groups of employees meet regularly and look at how quality can be improved, recommendations are passed to management

• Empowers employees by making them feel valued, job enrichment, higher motivation, more commitment
• Need the support and encouragement of management

Quality benchmarking

🔗A process which identifies where the business falls short of current best practice and helps them to determine what action is needed to match or exceed best practice

Total Quality Management (TQM)

All employees take responsibility for the quality of their and their team's work

• Empowers employees by making them feel valued, job enrichment, higher motivation, more commitment
• Develops worker skillset, less wasteful and more productive, ensures quality standards are met, higher customer satisfaction, higher market share
• Stakeholders may not wish to be involved, could be met with resistance, reduced motivation, not committed, detrimental to quality
• Requires large-scale investment, e.g., costs of worker training and kaizen, opportunity cost (money better spent on product development or marketing)

Kaizen

A system of continuous small improvements in order to improve efficiency and quality

• Small changes make it easier for staff to adjust to, develops quality of operations, lower cost per unit from increased efficiency
• Constant changes to improve quality ensure business does not stagnate, maintains a cost competitive advantage, reduces the need for a drastic change
• Small changes may not make significant improvements to efficiency, opportunity cost
• Staff may not be able to keep up with quick changes, demotivating, less commitment, stagnates business progress helping them to catch up

Competitive advantage from quality management

• Enhances reputation and competitive advantage
• Creates customer loyalty and attracts new ones
• Premium pricing is possible, leading to increased revenue and profitability
• Reduces costs due to less wastage of raw materials and labour
• Less time spent on replacing faulty goods and customer care, more productive