MANAGEMENT OF OPERATIONS

MAINTAINING QUALITY

LEARNING INTENTIONS/SUCCESS CRITERIA

LEARNING INTENTIONS:

I understand the different ways that organisations cantry to ensure that they havea QUALITY PRODUCT or QUALITY SERVICE.

SUCCESS CRITERIA:

• I can explain what is meant by the term quality.

• I can explain the reasons why organisations should focus on ensuring quality.

• I can explain how QUALITY RESOURCES and QUALITY SYSTEMS can contribute to product quality.

WHAT IS IT ALL ABOUT?

The process issue of PRODUCT QUALITY deals with making sure that the products produced DO WHATCONSUMERS EXPECT and are RELIABLE (relative to thePRICE they are sold for).

Quality is an IMPORTANT ISSUE for businesses because if finished products do not meet the expectations ofCONSUMERS then they will STOP USING A BUSINESS.The business could also face COURT ACTION and FINESif they have broken any laws.

LEGISLATION WHICH MUST BE COMPLIED WITH

The following pieces of legislation must becomplied with to prevent court action and fines:

THE SALE OF GOODS ACT – this states that goods must be of MERCHANTABLE QUALITY.

TRADE DESCRIPTIONS ACT - this law prevents businesses advertising or DESCRIBING their products FALSELY.

LEGISLATION WHICH MUST BE COMPLIED WITH

WEIGHTS AND MEASURES ACT – this lawprevents businesses from selling products that are UNDERWEIGHT or SHORT MEASURED(ie weigh less than there should be).

FOOD AND DRUGS ACT - this law setsminimum standards for what must be contained infoods and makes it ILLEGAL TO SELL FOOD thatis “UNFIT FOR HUMAN CONSUMPTION”.

QUALITY CHECKS

When products are made, they should be checked

at regular intervals for defects and to ensure they

are meeting the relevant standards/legislation.

Let’s watch an example of how this is done:

http://www.bbc.co.uk/learningzone/clips/quality-control-in-bottled-drinks/5985.html

METHODS OF ENSURING QUALITY

There are actions which a business can taketo ensure they are producing good qualityand these are:USING HIGH QUALITY STOCK Businesses will want to use suitably high quality STOCKS for production because if they are not then finished goods will not be of a high enough standard. This is because “rubbish in will equal rubbish out”.

METHODS OF ENSURING QUALITY

USING HIGH QUALITY RESOURCESBusinesses must make sure that the FACTORSOF PRODUCTION that they use will be of a high enough standard to produce the finished product to a suitable standard. This can be achieved by• RECRUITING good quality staff with the right skills and

experience• Providing adequate TRAINING for staff• Repairing and MAINTAINING capital equipment and replacing it when necessary.

METHODS OF ENSURING QUALITY

QUALITY CONTROLQuality control is about checking at the END OF PRODUCTION thatproducts are of a high enough quality. Any poor quality products that are found are scrapped or sent back to be fixed.

QUALITY CONTROL HELPS IMPROVE QUALITY FOR THEFOLLOWING REASONS:• Poor quality products can be found and so are prevented from leaving the

business and causing problems.

HOWEVER, QUALITY CONTROL DOES HAVE THE FOLLOWINGDRAWBACKS:• Staff are only trying to find problems and not prevent them, so mistakes can

still happen and create problems• The system is expensive because there will be high levels of wastage.

METHODS OF ENSURING QUALITY

QUALITY ASSURANCE

Quality assurance is about setting expected quality

standards, making them clear to staff before they

start work and then checking that products meet

these standards at EACH STAGE OF

PRODUCTION. Any mistakes found at each stage

of production will be fixed before the product

moves on.

METHODS OF ENSURING QUALITY

QUALITY ASSURANCE MANAGEMENTBENEFITS:• Staff are trying to actively work to high quality standards

and so mistakes are less likely to happen• Staff are encouraged to work for each other and so

teamwork is improved• The system can cut costs because it aims to prevent

problems and minimise repair costs as errors can be fixed cheaply as they are found early

• Poor quality products are highly unlikely to leave the business and cause problems because of the standards set and the many checks that are done

METHODS OF ENSURING QUALITY

QUALITY ASSURANCE MANAGEMENTDRAWBACKS:• It is very expensive to set up the system

due to training staff to meet standards and the machinery and time needed for all the quality checks

• Quality policies and procedures must be written and strictly adhered to, which involves a lot of paperwork and time.

METHODS OF ENSURING QUALITY

TOTAL QUALITY MANAGEMENT:This involves the TOTAL COMMITMENT of all staff.This system aims for ZERO DEFECTS and CONTINUOUS IMPROVEMENT in quality.

METHODS OF ENSURING QUALITY

QUALITY CIRCLESThis involves groups of employees coming together with management at regularintervals in order to discuss issues of quality. They may come up with suggestions on improving quality, which, if successful, will give them jobsatisfaction and motivation in their jobs.

This goes hand-in-hand with TQM as continuousimprovement is being encouraged.

TASK

Complete Worksheet 35 in your jotters.