1. IB Business and Management
5.4 Quality Assurance Higher Level

2. Kaizen
Is a system of continuous improvement in
Quality
Technology
Process
Company
Culture
Productivity
Safety
Leadership
Reducing waste
The aim is to establish small improvements rather than larger scale changes

3. 改 ("kai") "change" or "to correct“
The word Kaizen means "continuous improvement".
It comes from the Japanese words 改善
改 ("kai") "change" or "to correct“
善 ("zen") "good“

4. Western philosophy may be summarized as
"if it is not broken, don't fix it.“
The Kaizen philosophy is to
"do it better, make it better, improve it even if it isn't broken, because if we don't, we can't compete with those who do."

5. Kaizen assumptions….. Suggestions are not limited
Making changes anywhere
Making little changes on a regular basis
Never-ending efforts for improvement
Changes involve every employee

6. Why Kaizen?
Watch the video ‘THME Toyotas way Kaizen’

7. Putting Kaizen into Practice
Long term approach
Investment required in training
Quality Circles
Culture of ‘Openness’ required
Kaizen systems
Incentive schemes

8. Quality Circles
Are small group of workers (5-20) from across the business
Meet regularly to study and discuss issues
Feedback on their ideas .

9. Advantages The company keep abreast of change.
Can empower and motivate staff
The focus for improvement is returned to the needs for the customer.
It eliminates the need for inspection.
It is easier to do only small continuous improvements than big ones that disrupt the organisation.

10. Difficulties The difficulties in getting started Can be exhausting!
Getting people to think in the long term.
Convincing people that quality is not costly, but actually saves money, time and effort.
Getting away from 'inspection' culture
A lot of involvement needed from management

11. National and International Quality Standards

12. What is National and International Quality Standards
Use National and International Quality Awards to prove that standards have been met.
Permitted to include the quality award symbols or logos on their products.
Use National and International Quality Awards to prove that standards have been met. If the business meets/exceeds these standard they are therefore permitted to include the quality award symbols or logos on their products. Which helps to assure customers that their products are of a high quality.

13. How do Quality Awards Help?
Promote Quality awareness
Improve organizational performance
Recognise quality achievements
Attract High Calibre employees
Competitive Advantage
Costs:
Expensive
Disrupt business activity
Skilled Workers
Promote quality awareness: this is within the organisation and encourages internal stakeholders to maintain high quality standards.
Improve Organisational achievements: This can act as incentives for employee motivation because it provides an organisation with an objective.
Recognise Quality Achievements: This can also have motivational effects on the workforce which could increase productivity.
Attract high calibre employees: Businesses always look/ want the best possible employees and high calibre employees are those which have an outstanding reputation and may help a business to grow and succeed.
Competitive Advantage: An organisation with quality awards increases market share as competitors may not have the same quality awards therefore the organisation can improve brand image and achieve brand loyalty.
Costs associated with the quality standards include expenses (it costs money to keep up high quality manufacturing – higher wages to high-skilled workers, maintenance costs). Disrupt business activity as a business can’t completely focus on the manufacturing process-therefore productivity may be affected.

14. How to obtain a quality awards
Autonomous bodies
Government Funded
Example: Subway
Regular Testing
Numerous organisations that promote product and service quality which are independent of organisations wanting the quality award and also the government. Government funded by grants. They operate in order to maintain high quality standards and safety amongst products.
Take subway the food restaurant, on their wall you will usually see health and safety certificate, this certificate was given by an autonomous body (also known as investigators). Subway has passed the inspection and it shows customers that they are producing high quality and clean food.
For a business to achieve a quality standard award its product must undergo regular testing by independent agents (autonomous bodies) only if the product/ business meets the requirements will they obtain an award.

15. Examples of National and International Quality Awards
The CE Marking
The ASQ Award
The BSI “Kitemark”
The Lion Mark
CE: EU’s award for products that meet mandatory health and safety standards.
ASQ: American Society for Quality. Promotion of advancement of quality in the USA. Administers the Malcolm Baldridge (US presidential award) award-performance excellence. V
BSI: British Standards Institutions responsible for setting quality standards in UK. Products with BSI inform customers that they have been manufactured to a high level of quality.
Lion: British Toy and Hobby Association. Meeting strict regulations on the toy safety – also ensures product authenticity (i.e. not a fake!)

16. The International Standards Organisation (ISO)
Founded: 1947, based: Geneva, Switzerland. Has around 160 national quality standards bodies e.g. ASQ, BSI etc.
Goal
NGO
Goal: facilitate international trade by providing a single set of quality standards that customers and businesses throughout the world would recognise and respect.
NGO: It’s a non-government organisation (one of the most powerful – because its influential in affecting government legislation surrounding quality assurance).

17. How do the ISO keep track?
Proper recordkeeping
Monitored Operations and processes
Checked products for defects
Regular Reviews
Total Quality Management and Quality Assurance.
Monitored: ensures that quality products are being produced
Checked: before they are distributed and has carried out corrective measures when necessary.
Regular Reviews: sustains and improves efficiency.
TQM + QA: this is basically what the ISO does, QA is achieved as customers are guaranteed high quality by the ISO awards. TQM is achieved as the business is regularly processed in order to manage quality.

18. Typical Exam Questions
Examine the effectiveness of international and national quality awards in achieving competitive advantage. (6 marks)
Examine the role of a regulatory body (one of the examples of National and International Quality Awards e.g the BSI Kitemark) in ensuring quality standards of businesses. (6marks)