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Copy of Developing effective operations: quality

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by

Mr. Cuttle

on 24 February 2014

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Transcript of Copy of Developing effective operations: quality

Developing effective operations: quality
Why is quality important?
If a business can develop a reputation for QUALITY it can give it an advantage over its rivals:
Able to charge a higher price
Achieve loyalty from customers
Achieve repeat purchases
Obtain ‘free’ promotion e.g. word-of-mouth recommendations
USP?
Examples of poor quality
Product failure e.g.
breakdown
unexpected wear and tear
Product does not perform as promised
Product is delivered late
Poor instructions/directions for use
Unresponsive customer service
Conclusion
Lesson Objectives:
By the end of this lesson you should be able to:

Explain the meaning and appreciate the importance of quality;
Understand and Compare quality control and quality assurance;


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Quality control
Definition:
the process of inspecting products to ensure that they meet the required quality standards.
It involves the following:
Inspecting a sample of products at the start (raw materials), during and at the end of the process.
Done by ‘inspectors’ not workers, often at the end of the process (too late to change).

Quality Assurance
Definition: (throughout entire organisation)
the processes that ensure that production quality meets the requirements of customers.
The aim is to minimise the possibility of sub-standard production by building-in control
All employees are responsible for the quality of what they produce
The costs to the business of poor quality
Lost customers – expensive to replace, a lot of reassurance required
Cost of reworking or remaking the product
Cost of refunds or replacements
Wasted materials/products

Ultimately a business may lose market share which is very difficult to regain in a competitive market.

What is quality?
Definition:
meeting the needs and expectations of customers

These needs may include:
Performance (fit for purpose)
Appearance
Availability & delivery
Reliability/durability
Price
Quality Management
Definition:
controlling activities with the aim of ensuring that goods and services are ‘fit-for-purpose’ and meet customer specifications and expectations.
There are two main approaches:
1. Quality Control
2. Quality Assurance

What might the choice between quality control and quality assurance depend on?
Look at page 251 in book :
Costs involved in introducing QA?
Potential benefits?
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Full transcript