1. 4.3 Achieving Quality Production
IGCSE Business Studies
4.3 Achieving Quality Production

2. LEARNING OBJECTIVES
To understand what ‘Quality’ means and why it is important
To understand the concept of ‘quality control and how businesses implement quality control
To understand the concept of quality assurance

3. Starter – What is quality? 5 mins
In pairs, consider an example of something you purchased that you considered to be ‘good quality’. Why did you consider the quality to be good?
Then, consider an example of something you purchased that you considered to be ‘bad quality’. Why did you consider the quality to be bad?

4. So… How could we define the term ‘quality’?

5. Quality is about satisfying customers’ needs and expectations.
What is Quality?
Quality is about satisfying customers’ needs and expectations.
Quality is ‘fitness for purpose’

6. 3 Aspects to Quality
Quality
Quality Control
Quality Assurance

7. Why is Quality a Concern?
Gives competitive advantage
Encourages return purchases
Provides customer with information and builds consumer confidence in the brand
Reduces costs incurred in solving post sales problems
Helps improve efficiency
If quality control breaks down the cost can be severe.
Title: Cumbrians Continue to Cope With UK's Foot and Mouth Epidemic.
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8. Quality Control
Process of identifying faults and errors to eliminate them.
The responsibility of every member of the workforce for the quality of products and services provided by the business.
Emphasis on reducing defects, etc. before it gets to the final stage of production and certainly to the consumer.

9. Quality Assurance Setting standards
Applying the standards across a business’ activities
Guaranteeing that these standards will be met

10. Quality Assurance
The process whereby quality is at the forefront of every stage of the development, design, marketing, manufacturing and selling process.
‘Quality’ is influenced by the internal philosophy of the business and the external influences…?

11. Quality Assurance Focuses more on prevention rather than inspection.
Employees checking their own work – Self checking
Employees held responsible for their own work.

12. What are the benefits of quality assurance/control?
Customer confidence
Reputation
Cost – return to base
Motivation of employees
Pricing
Warranty on costs
Customer loyalty and repeat purchasing.
Any disadvantages?
WHAT ARE THE DIFFERENCES BETWEEN QUALITY ASSURANCE & QUALITY CONTROL?

13. National and International Standards
Bodies that exist to promote quality:
International Standards Organisation (ISO) issues global standards, including ISO 9000
British Standards Institution (BSI) sets quality standards for British industry
British Toy and Hobby Association (for example, covering a trade or set of markets)

14. ISO 9000 Benefits
Businesses, can base their activities (products and services offered) on requirements that are accepted widely across the globe
As these standards have a worldwide acceptance, consumers are served with an increasingly wide choice of products and services
Technology becomes compatible across most business organisations

15. Total Quality Management (TQM)
TQM is a management approach which seeks to involve all employees in the process of improving quality.

16. TQM (Total Quality Management)
Name given to quality control
Features of TQM:
Quality Circles – meetings of relevant workers to discuss issues relating to maintenance and improvement of quality in the business – may also double as a form of empowerment and motivation.
Statistical Process Control – statistical data generated to inform the evaluation of processes within the business.
Zero defects – systems in place to ensure that no product leaves the business with a defect – important in building supplier relationships, image, reputation.

17. Quiz time
Quiz 1 Grab the white boards!