HOW DO FIRMS ENSURE QUALITY?
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Transcript of HOW DO FIRMS ENSURE QUALITY?
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HOW DO FIRMS ENSURE QUALITY?
Quality ControlTotal Quality Management
BenchmarkingQuality Circles
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What is Quality?
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Why is it important? Consumers are more aware Magazines publish reports Consumers have higher
expectations Legislation Competition forces improvement Part of Kaizen and lean production
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Quality ControlIn the Production Dept
Production Department ensures that products
Satisfy consumer needs Work under the conditions they will face Can be produced cost effectively Can be repaired easily Conforms to safety standards
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3 STAGES OF QUALITY CONTROL
1. Identify standards and set targets
2. Monitor standards – test products
3. Respond to findings
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1. Remove a sample of cereal every half hour
2. Test 50 samples twice a day3. Compare sample with the perfect product4. Grade given: 1-10 where 10 = perfect5. 7-10 = pass TRADITIONAL METHOD OF TESTIN G
THE COMPLETED PRODUCT = WASTE
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Facts about Quality 1/3 of all effort in British business
is wasted in correcting errors £4 billion is spent on this Obvious benefits of getting it right
first time and not after the fact
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THE MODERN APPROACH
TEST PRODUCT DURING PRODUCTION TO PREVENT
FAULTS AND POOR QUALITY
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TOTAL QUALITYMANAGEMENT
TQM
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What is TQM? A method designed to prevent errors and
poor quality products The business ensures that the
manufacturing process is investigated at every stage
Success of Japanese companies based on this
100% of the organisation must be involved It is a business philosophy…
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Quality Chains In order to produce quality goods you
must have
Quality suppliers and raw materials Quality administration systems Quality equipment
These elements make up a quality chain.
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Company Policy There will only be improvement if
there is a company wide policy TQM must start at the top and
spread through the business People must take pride in their job Everyone is accountable for their
own performance
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TQM AND MOTIVATION Teamwork is the most effective way of
solving problems ADVANTAGES ARE:-ADVANTAGES ARE:- Employee morale is often improved Problems are better dealt with A greater variety of problems can be
dealt with in teams Team ideas are more likely to be
accepted
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USING TQMTQM helps companies to Focus on the needs of the consumer Achieve quality n all aspects of the
business Analyse all processes and remove waste Develop a team approach to problem
solving Develop effective procedures for
communications
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QUALITY CIRCLES Small groups of staff, usually from the
same work area, who meet on a regular and voluntary basis
They attempt to solve problems No discussion of other issues –just
quality Must fulfil certain conditions Used in all Honda plants
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QUALITY CIRCLES A steering committee should be set
up to oversee the programme A senior manager should chair the
committee Team leaders should be properly
trained Workers from various levels should
be present
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Problems with TQM? Training and development It will only work with 100%
commitment Increased paperwork due to regular
audits Cost – design and development,
monitoring, cost or trying again if system fails.
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BENCHMARKING BPB – Best Practice Benchmarking
A technique used by some businesses to help them discover the ‘best’ methods of production and adopt them.
Fid the best company Analyse their methods Equal their standards
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The steps:-
What should be benchmarked?
Who should the company
benchmark against?
How is the information obtained?
How should the info be
analysed?
How will the infobe used?
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QUALITY STANDARDS BSI Kitemark Investors in people Scottish Tourist Board star system AA/RAC Lionmark Woolmark
Marks that show a product has met a certain standard
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Benefits Fewer complaints received Loyalty from customers The customer places trust in the
company Premium price can be charged
See notes