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A good management system includes the quality control and quality assurance of products - NSC Business Studies - Question 6 - 2021 - Paper 1
Question 6
A good management system includes the quality control and quality assurance of products. Businesses need to manage the purchasing and marketing functions so that the... show full transcript
Worked Solution & Example Answer:A good management system includes the quality control and quality assurance of products - NSC Business Studies - Question 6 - 2021 - Paper 1
Step 1
Outline the differences between quality control and quality assurance.
Answer
Quality control (QC) and quality assurance (QA) are both vital components of a good management system, yet they serve different purposes:
- Quality Control (QC): Focuses on the inspection of finished products to identify defects. It occurs during or after the production process and employs various techniques like testing and measuring. QC ensures that products meet the required standards prior to reaching the customer.
- Quality Assurance (QA): Involves the processes set in place to assure that defects are prevented. This is a proactive approach that occurs before the product is made, focusing on improving and maintaining quality standards across production.
By differentiating these concepts, businesses can better understand how to reduce defects and maintain quality.
Step 2
Explain the quality indicators for the following business functions: - Purchasing
Answer
Quality indicators for the purchasing function include:
- Supplier Reliability: Ensuring that suppliers consistently provide raw materials/products in bulk and at competitive prices.
- Stock Management: Maintaining adequate stock levels to avoid production delays and ensuring that the quality of stock meets the required standards.
- Supplier Relationships: Establishing strong relationships with suppliers to align them with the business's needs, enhancing communication and ensuring quality.
- Cost Efficiency: Continually assessing supplier performance and seeking ways to reduce costs without sacrificing quality.
Step 3
Explain the quality indicators for the following business functions: - Marketing
Answer
Quality indicators for the marketing function include:
- Customer Satisfaction: Assessing customer feedback through surveys to determine satisfaction levels after engaging with products/services.
- Advertising Effectiveness: Measuring the success of advertising campaigns in conveying the product's value and attracting customers.
- Market Research: Conducting thorough market research to understand consumer needs and ensuring that marketing strategies address those needs effectively.
- Customer Retention Rates: Tracking the rate of repeat customers can reveal how successfully products meet consumer expectations.
Step 4
Evaluate the impact of continuous improvement to processes and systems as a TQM element on large businesses.
Answer
Continuous improvement, as a TQM element, significantly impacts large businesses:
- Enhanced Efficiency: By continually refining processes, businesses can eliminate waste, reduce costs, and streamline operations.
- Increased Innovation: Regularly assessing and adapting processes encourages innovation among employees. This can lead to new ideas for products or improved service delivery.
- Employee Engagement: Involvement in continuous improvement initiatives can boost employee morale and productivity as they feel their contributions are valued.
- Long-term Sustainability: Implementing continuous improvement fosters a culture of quality, ensuring long-term success by regularly adapting to market changes.
Step 5
Suggest ways in which TQM can reduce the cost of quality.
Answer
TQM can reduce the cost of quality through several strategies:
- Training and Development: Providing comprehensive training helps ensure all employees understand quality standards and practices, reducing errors.
- Process Standardization: Streamlining procedures minimizes variations that could lead to defects, ultimately saving costs associated with rework or returns.
- Preventive Maintenance Programs: Implementing maintenance schedules can help avoid equipment failures that impact production quality and efficiency.
- Quality Circles: Encouraging employee participation in quality circles can lead to practical suggestions for improvement, fostering a collaborative approach to quality management.