1. 5.3 – 5.4 (Quality Assurance and Location)

2. William Edwards Deming – A US statistician and college professor that improved production in the US during WW II – Best known for his work in, where he taught how to improve design/product quality – He was the well-known for launching the movement

3. TQM TQM stands for Two advantages of TQM: – It can Two disadvantages of TQM: – It can

4. Quality control and assurance What are two differences between quality control and quality assurance?... – Quality is in quality control and quality is in quality assurance. – Certain is set in quality control and zero in quality assurance. – Production is in quality control and production is in quality assurance. – Quality is responsibility of person/people in quality control and quality is reasonable by person/people

5. Consumer perception and Kaizen Consumer perception can determine the of a product and whether or not it meets the standard. Kaizen =

6. William Edwards Deming – A US statistician and college professor that improved production in the US during WW II – Best known for his work in Japan, where he taught how to improve design/product quality – He was the well-known for launching the TQM movement

7. TQM TQM stands for Total Quality Management Two advantages of TQM: – It can Motivate workers – It can reduce long-term costs – It can improve recognition of quality products – It can create closer working relationships with stakeholders Two disadvantages of TQM: – It can be costly – Staff may need training – It can create stress on formal relationships in business – May take time to change a corporate culture – It is difficult to maintain for long period

8. Quality control and assurance What are two differences between quality control and quality assurance?... – Quality is “controlled” by one person in quality control and quality is “assured” no one leader in quality assurance. – Certain % rejects is set in quality control and zero rejects in quality assurance. – Production is rarely stopped (flow/line production) in quality control and production is expected to be stopped to fix errors in quality assurance. – Quality is responsibility of one person/people in quality control and quality is reasonable by teams of person/people

9. Consumer perception and Kaizen Consumer perception can determine the quality of a product and whether or not it meets the standard. Kaizen = Continuous improvement

10. Location Factors determining location: – Costs,, Inertia,,, Infrastructure, Labor pool,, government Pull factors: – Improved communications – Dismantling of trade barriers – Deregulation of the world’s financial markets – Increasing and power of multinational companies

11. Globalization Push factors: – Reduce – Increase share – Put extension strategies into place – Use operating overseas as defensive strategy – Increase awareness of business Impact of globalization on business functions: – Production, Marketing,,

12. Location vocab Offshoring: Relocation of some of a company’s production, services or jobs overseas to reduce costs Inshoring: “opposite” of offshoring, moving a business from overseas to the local country Outsourcing (): a process, such as product design or manufacturing to a third-party company E-Commerce: Business on the Distribution system: The method a business distributes its products/services Demographic change: Change in demographics (effects labor pool)

13. Location Factors determining location: – Costs, government, Inertia, type of land, suppliers, Infrastructure, Labor pool, markets, government Pull factors: – Improved communications – Dismantling of trade barriers – Deregulation of the world’s financial markets – Increasing economic and political power of multinational companies

14. Globalization Push factors: – Reduce costs – Increase market share – Put extension strategies into place – Use operating overseas as defensive strategy – Increase awareness of business Impact of globalization on business functions: – Production, Marketing, HR, Finance

15. Location vocab Offshoring: Relocation of some of a company’s production, services or jobs overseas to reduce costs Inshoring: Outsourcing (subcontracting): subcontracting a process, such as product design or manufacturing to a third-party company E-Commerce: Business on the internet Distribution system: The method a business distributes its products/services Demographic change: Change in demographics (effects labor pool)