HOW DO WE DECIDE?

Product QUALITY is

judged on...

Good Function

Durability

Reliability

Image

After-sales service

Value for money

What is Quality?

• Can be defined as “ability to satisfy the expectations of consumers”

• How do you measure customer satisfaction??

• Actual Vs Perceived quality

Airbus

• Airbus produces around half of the world’s jet airliners and employs around 57,000 people at 16 sites in 4 European countries.

• Airbus’ customers expect quality in the aircraft they buy.

Answer all the questions (10 mins)

Quality Control

ADVANTAGES OF PRODUCING QUALITY GOODS

Higher prices Reduction in waste Less need to advertise Reduction in customer

complaints Increased guarantee

periods

IMPORTANCE OF THE WORKFORCE

• Enhance the effectiveness of staff by achieving quality

A mechanism for ensuring than an output conforms to a predetermined specification.

INSPECTION

Efficient quality control depends on efficient random sampling of

manufactured items

Quality Assurance

• Inspection during the production rather than after production had taken place.

• Problems and poor quality products can be prevented before final production

PREVENTION

“is a commitment by a business to maintain quality throughout the organisation.”

Quality Circles

ADVANTAGES• Increase motivation of staff

• Improve communication

• Unlock worker potential

• Put quality on the agenda

DISADVANTAGES• Cost and time

• Resentment among staff not involved

• Potential mismatch of staff involved

“meetings of groups of workers from different levels and sections of an organisation to seek improvements in quality”

15 mins

• Explain why it is important to have the support of the workers when trying to improve quality

• Discuss the advantages and disadvantages of trying to use quality circles at a local restaurant

Quality

MotivationTraining

Training

• The aim of training is to change or reinforce behaviour and/or to increase skills.

• In the area of quality, workers need to be made aware of the improvements they can make in their performance and the positive impact these can have on sales, profit and, ultimately, return for the worker.

• Should be continuous and adapt to the business environment.

5 mins

• Using the example of fast food restaurant, explain why it is important to train staff carefully when trying to increase quality.

Quality Standards• ISO 9000 is an international standard

which businesses seek to achieve.

• The British Standards Institution (BSI) is an independent organisation that attempts to set quality standards in industry. http://www.bsi-global.com

• Firms seeking certification have to show that their methods and procedures meet the recognised standards and comply with requirements.

• They are inspected on a regular basis to make sure that standards are being maintained.

• An ISO 9000 certification can help businesses to:– Examine and improve systems,

methods and procedures to lower costs

– Motivate staff and encourage them to get things right first time

– Define key roles and responsibilities

– Ensure orders are delivered on time

– Highlight problems and improvements

– Give a clear signal to customers that it is taking measures to improve quality

The British Electrotechnical Approvals Board (BEAB)

• A global leader in testing, inspection and certification of domestic electrical equipment.

The Association of British Travel Agents (ABTA)

• Code of practise for membersThe Wool Marketing Board

The British Toy and Hobby Association (BTHA)

• Measures a firm’s production against the most competitive industry performance standards: it seeks out better or best practice from other organisations, and managers compare this practice to that of the firm.

Benchmarking can be traced back to the 1980s in the USA: the Xerox Corporation sent a team to Japan to study why Canon could sell its photocopiers at a lower price than Xerox was managing to make it own copiers for.

Benchmarking

Benchmarking may operate at various levels, it:• Provides basic ‘market intelligence’

information for the firm

• Keeps management abreast of developments

• Encourages the firm to adopt ‘best practice’.

Learning Summary

How and why would a business seek to improve quality?