SL/HL OPERATIONS MANAGEMENT QUALITY ASSURANCE IB BUSINESS & MANAGEMENT – A COURSE COMPANION, 2009:

Approaches to Quality There have been two major approaches to quality: Quality Control Quality Assurance

QUALITY CONTROL Resources are put into the inspection of finished goods to “weed out” any defective items, so that customers only receive items of the required quality. Assumptions There is an expectation of some defects and their eventual elimination allows the employees to be sloppy in their attitude towards their work. It can be expensive in that final inspection only deals with the symptoms rather than the causes of the defects: the faulty unit will be either discarded or totally reworked.

QUALITY ASSURANCE The emphasis is on building quality into the process from the start, prevention is better than (expensive) cure. Deming, suggested that quality was needed in four areas:  production process design.  production process implementation.  product design  product. ** The task is to “build quality in”.

QUALITY ASSURANCE Assumptions The approach relies on employees being willing to take responsibility for the quality of their own output through a system of self-checking. Workers must be sure of the quality of the inputs they use and thus have the right to reject materials produced by earlier stations along the production line. In the early stages of its introduction, the approach can be expensive, but it leads to long term savings.

TOTAL QUALITY MANAGEMENT (TQM) TQM takes as its starting point that every employee of the firm has a contribution to the satisfaction of the end customer, and thus to the success of the business; furthermore, they have a duty to ensure the quality of the final product.

TOTAL QUALITY MANAGEMENT (TQM) Examples – Everyone is responsible for quality: Receptionists They could be the first point of contact that any visitor to the firm has; a smiling face and a cheery hello can make a big difference. Delivery Drivers A badly driven truck can offend other road users who might remember the company name and develop a bad impression of the firm overall.

TQM & Quality Assurance To encourage all groups to participate in a quality assurance environment, employees are asked to consider not only:  External Customers: the buyers of the business end product.  Internal Customers: people within the firm who need goods or services from each other.

TQM & the role of Employees TQM requires each employee to consider the needs of their customer (internal or external) and to see if any improvements, however small, are possible in the way they supply down the chain. They are encouraged to undertake self- checking to ensure that Deming’s concept of building quality into production at every stage is fulfilled.

Approaches to Quality Improvement There are many different possible approaches that have been used to improve quality. Within the general TQM framework, there is plenty of scope for introducing some of the most popular tools which are set out below:

Ishikawa-Fishbone Diagram The original Ishikawa diagram was designed to show the cause and effects of qualitative problems. It was designed with the 4 Ms (to be used with manufacturing) but has been followed by the Ps (for service based industries) and Ss (for administration) and of course there are much more loose combinations of all of them. The general idea, though, is to provide a tool to help brainstorm the cause and the effects of a quality problem. It is particularly useful when running a quality circle.

ISHIKAWA FISHBONE DIAGRAM – CALL CENTRE EXAMPLE This diagram is for a call centre in Bangalore India. The problem is a very high labour turnover. The diagram is to help the business work out why this might be so.

Brainstorming & Ishikawa Diagram Call Centre Example After identifying the areas of concern, a brainstorming session may reveal that the constant interference by management, long hours worked and poor quality sound proofing may be the main causes of the high labour turnover in at the call centre.

BENCHMARKING Benchmarking is a tool that many businesses use and with collaborate benchmarking many competing businesses can act together to use it help themselves keep up to date. The idea is very simple – businesses take the best players or the market leader in their industry and follow those organizations “best practices”.

BENCHMARKING The idea is surprisingly open and it not so much about copying the rivals products but instead management practice and production processes of competitors should be examined in order to improve quality. Benchmarking can be used as part of the SPC process. In fact, open benchmarking can have advantages for both parties – the company that acts as the benchmark benefits because with the recognition comes a good PR opportunity and acceptance, often by other stakeholders, that it is an innovator.

Processes Involved in Benchmarking Formally, benchmarking should involve the following: 1.Identify the area that has quality problems 2.Find other businesses in the industry that have similar processes. 3.Work out who the leading businesses are in the industry. 4.Conduct market research on those business practices. 5.Visit the businesses. 6.Implement measures and practices learned from the business researched.

What determines the success of benchmarking? The success of benchmarking relies on the business wishing to solve its problem having the ability to “think outside the box” – trying to introduce something new and not to carry on as always has. Also what works for one organization may not necessarily work for another.

KAIZEN The concept of KAIZEN is central to TQM and lean production in particular The term means in effect “continuous improvement”. The idea was developed by Toyota and the emphasis is on continuous change, not one time changes. The process may involve suggestion boxes or competitions to find suitable areas of improvements in the simplest form.

Key Principles of Kaizen It must be inclusive of all levels of the hierarchy There should be no blame attached to any problem issued raised. Systemic thinking is needed to think of the whole population process not a small part of it. It focuses on the process and not the end product.

The difficulty of maintaining Kaizen in the long term: Kaizen is a great idea, but the reality is that is it very difficult to maintain over a long period of time the momentum and focus that Kaizen needs. To do so would require high levels of commitment and a sense of loyalty by the employees and so this is closely tied to human relation or behaviouralist motivational theorists. It would not work under an autocratic leadership or bureaucratic corporate culture.

National & International Safety Standards An excellent way for businesses to assure the consumer of the quality of their product is by gaining certification for recognized safety standards. At local, national or even better, international level a safety certificate is a mark of assurance that the product has met certain minimum requirements. The problem of certification is quite a complex one.

National & International Safety Standards Conflict between National & International Standards In 2007 a Chinese producer manufacturing toothpaste for an international brand satisfied both local and national regulations, but failed international safety standards as the toothpaste was found to contain elements of anti-freeze.

Benefits of Meeting International Safety Standards: Meeting recognized safety standards and so assuring the consumer the product is safe can be very favourable to a business because it can: Give a competitive edge Save on the cost of withdrawing products Act as an insurance Bring better profit margins.