4 3 Achieving Quality Production

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Compiled By: Shubhanshi Gaudani 1

4. Operations Management
4.3 Achieving Quality Production

Business Studies, CIE IGCSE (0450)

4.3.1 Quality Importance and Achieving Quality Production


• Quality: Ensuring a good service that meets the needs and requirements of its
consumer.

• Quality Standards: The minimum acceptable standard of production or service


available to consumers.

• Design Standards: Help business create the best possible product, which
consumers find more valuable than other products in the market.

• Process Quality Standards: Help business produce goods at the lowest cost.

• IMPORTANCE OF QUALITY TO ALL BUSINESSES


• Develop a Strong Brand Image: Customers will know the reputation a business has
for quality products, and will assume that any knew product is of same quality.

• Keep Customers and attract new customers: Customer Loyalty, When a business
has quality production reputation it is easier to attract new customers, and keep their
existing customers.

• Reduce Costs, Customer Complaints, and Returns: If quality products are only sold,
more customers will be satisfied and there will be less returns, in the long run, it will
build healthy customer relationships and attract new customers.

• Charge a Premium Price: Many consumers are prepared to pay a higher price for
product that is seen of better quality, than similar products on market, this may
increase profitability.

• Encourage Wholesalers and Retailers to stock product: They will know that high
quality products won’t get spoilt, and they know customers will want to buy it. They will
stock more of this product and increase their revenue and profits.

• Lengthen Product Lifecycle: Products with good quality, will be continuously sold to
consumers, increasing its lifecycle, so it will stay in the most profitable stage of
maturity for longer.

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Compiled By: Shubhanshi Gaudani 2
• QUALITY CONTROL: Checking the quality of goods through inspection.
• Businesses employ trained quality inspectors to check products usually at the
end of the production process.

• Rarely possible to check every item produced as it is time taking and expensive.
• Inspectors may also have to dismantle product, or break it by force, this may be
expensive if every product is checked.

• Uses Sampling: Not every product is checked for quality; always a chance that
poor quality product reaches customer.
Problems of Quality Control

Work can be repetitive and boring this may demotivate inspectors, resulting in not performing tasks
efficiently.

Inspection only takes place at end of process,; problems of quality at beginning aren’t found soon
enough. Resources are wasted completing product which could have been rejected much earlier.

Quality inspectors, takes away responsibility of quality from workers, may not try to maintain quality
through whole process.

• QUALITY ASSURANCE: System of setting agreed quality standards for every stage
of production.

• Problems of Quality Control have forced many businesses to adopt quality


assurance. It makes sure that:

• Raw Materials and components are of required standard before they enter
production process.

• Quality standards are agreed for every stage.


• Products are designed by machines to minimise quality issues.
• Workers know they have responsibility for ensuring quality work.
• Benefits of Quality Assurance:
• Encourages teamwork; can act as a motivator.
• Reduces cost of wastage and faulty products
• Quality issues are found when they occur, not at end of production; resources
aren’t wasted unnecessarily

• Business’s inspection costs will be less; less time consuming.


• Find it easier towards obtaining industry quality awards like ISO 9000; awards
can bring marketing benefits.

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