‘Quality’ The term ‘Quality’ is written on large piece of sugar paper. In pairs, discuss the meaning of this term and feedback to the rest of the group. [5mins + 5mins feedback]

Learning Objectives TOPIC: Topic 5: Operations Management LESSON TITLE: Quality COMPETENCY FOCUS: Technological Impact (C4): students will develop their understanding of how technology has made an impact in the production process of products for a business. [IB Learner Profile Development: Balance] Learning Objectives By the end of the lesson, you should be able to… LO1) To describe what is meant by the term ‘quality’. LO2) To explain (using examples) the difference between quality control, quality assurance and total quality management (TQM) LO3) To analyse the move from traditional quality control methods to total quality management (TQM). SMSC: You will assess the organisational culture of businesses in terms of fundamental structure, purpose and strategy development. CRITICAL THINKING KEY: Knowledge Application Analysis Evaluation

Toyota’s approach to quality As a class, read the case study on pg. 342. Discuss the following questions: Why does Toyota take quality so seriously? How can it gain a competitive advantage from this approach? Why do you think it is important to involve all staff members in striving for higher quality? What do you understand by the term ‘quality’ product?

A ‘Quality’ Product A quality product/service is one that: Meets the needs and wants of customers Is ‘fit for purpose’ A quality product does not have to be expensive Performs as expected

Advantages of producing quality products Customer loyalty (trust in your product) Saves on costs (i.e. less returns, compensation, complaints) Longer life cycles Less advertising necessary as brand establishes itself through word of mouth You can charge a higher price

Quality Control & Quality Assurance QUALITY CONTROL: Based on inspecting a product or batch of products by a ‘Quality Inspector’. Therefore it will be his/her job to ensure a high standard of quality is maintained. QUALITY ASSURANCE: this is a system of agreeing and meeting quality standards before, during and after production to ensure customer satisfaction.

QUALITY CONTROL Quality Control Techniques 3 stages to effective quality control: Prevention – this is the most effective way of improving quality. Quality should be designed in to the product. Inspection Correction/Improvement

QUALITY ASSURANCE Quality Assurance is based on setting agreed quality standards at all stages in the production process including product design, product inputs (raw materials), production, delivery systems, customer service.

QUALITY STANDARDS ISO9000 This is an internationally recognized certificate that acknowledges that a quality procedure that meets certain conditions is in place at an organization.

QUALITY STANDARDS ISO9000 To obtain ISO9000 quality mark, a business must: demonstrate that it has: Staff training & appraisal methods Methods for checking on suppliers Quality standards in all areas of the business After-sales service Procedures for dealing with defective products

Total Quality Management (TQM) TQM: an approach to quality that aims to involve all employees in the quality improvement process. Lean Production: producing goods with a minimum amount of waste whilst maintaining good quality.

Mini-project Task Complete the mini-project using the worksheet provided. [30mins]

Case Study Read case study on Warburtons Ltd and respond to the questions. [30mins]

H/L Extension Research and make notes on: Kaizen (continuous improvement technique)