Transcript 5. Maintaining quality

MANAGEMENT OF
OPERATIONS
MAINTAINING QUALITY
LEARNING INTENTIONS/SUCCESS CRITERIA
LEARNING INTENTIONS:
SUCCESS CRITERIA:
I understand the different
ways that organisations can
try to ensure that they have
a QUALITY PRODUCT or
QUALITY SERVICE.
• 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 WHAT
CONSUMERS EXPECT and are RELIABLE (relative to the
PRICE they are sold for).
Quality is an IMPORTANT ISSUE for businesses because
if finished products do not meet the expectations of
CONSUMERS then they will STOP USING A BUSINESS.
The business could also face COURT ACTION and FINES
if they have broken any laws.
LEGISLATION WHICH MUST BE
COMPLIED WITH
The following pieces of legislation must be
complied 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 law
prevents businesses from selling products that are
UNDERWEIGHT or SHORT MEASURED
(ie weigh less than there should be).
FOOD AND DRUGS ACT - this law sets
minimum standards for what must be contained in
foods and makes it ILLEGAL TO SELL FOOD that
is “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/qualitycontrol-in-bottled-drinks/5985.html
METHODS OF ENSURING QUALITY
There are actions which a business can take
to ensure they are producing good quality
and 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 RESOURCES
Businesses must make sure that the FACTORS
OF 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 CONTROL
Quality control is about checking at the END OF PRODUCTION that
products 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 THE
FOLLOWING REASONS:
• Poor quality products can be found and so are prevented from leaving the
business and causing problems.
HOWEVER, QUALITY CONTROL DOES HAVE THE FOLLOWING
DRAWBACKS:
• 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 MANAGEMENT
BENEFITS:
• 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 MANAGEMENT
DRAWBACKS:
• 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 CIRCLES
This involves groups of employees coming
together with management at regular
intervals in order to discuss issues of quality.
They may come up with suggestions on improving
quality, which, if successful, will give them job
satisfaction and motivation in their jobs.
This goes hand-in-hand with TQM as continuous
improvement is being encouraged.
TASK
Complete Worksheet 35 in your jotters.