2-4-4-quality-management

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Quality management methods

Quality considers the characteristics and features of a product that satisfy the needs of customers
Businesses need to maintain a level of quality that continues to attract and retain customers
There are several approaches to managing quality in the production process

Methods of quality management

Method	Explanation
Quality control	Inspecting the quality of output at the end of the production process Benefits Quality specialists are employed to check standards An inexpensive and simple way to check that the output is fit for purpose Drawbacks The rejection of finished goods is a significant waste of resources There is little focus on the cause of defects
Quality assurance	Inspecting the quality of production throughout the production process Benefits Quality issues are identified early, so products may be reworked rather than rejected The cause of defects is the focus, so future quality issues may be prevented Drawbacks Staff training and a skilled workforce are required, so labour costs may be increased Reworking may lengthen the production process
Quality circles	Groups of workers meet regularly to solve quality problems identified in the production process Benefits Workers may be motivated, as they are involved in decision-making Relevant and focused solutions are likely, as workers are familiar with processes Drawbacks Management needs to have trust in workers’ views and solutions Meetings must be organised regularly
Total quality management	Organisation of the business with quality at its core and with every worker responsible for quality Benefits Quality in all aspects of the business improves efficiency A culture of constant improvement exists within the business Drawbacks All workers must be committed and receive significant, continuous training Careful monitoring and control are required

Continuous improvement (kaizen)

Kaizen involves a business taking continuous steps to improve productivity through the elimination of all types of waste in the production process
- Changes are small and ongoing rather than significant one-offs, and they are constantly reviewed to ensure that the desired positive impact on productivity is achieved

Comparison of kaizen and one-off improvements

Graph showing productivity over time. The dotted line indicates continuous improvements; the solid, stepped line shows one-off improvements. On the y-axis is productivity, and on the x-axis is time. — **Continuous improvement is likely to lead to higher output per worker over time**

Elements of kaizen commonly include:
- Total quality management
- Just-in-time stock management
- Teamwork and quality circles
- Zero defects in manufacturing
- High levels of automation
- High levels of cooperation between workers and management
Kaizen requires a long-term management commitment to change

Competitive advantage from quality management

The quality of a business’s products can provide a competitive advantage
- Unit costs are likely to be low if a business takes a preventative approach through the use of quality assurance or total quality management
  - Low costs may allow a business to reduce its selling price to better compete with or undercut its rivals
- Increased finance may be available to fund marketing activity to improve brand recognition and attract new customers
- High levels of quality can be used in promotional activity and provide a unique selling point for businesses in competitive markets
- Successfully developing a unique selling point for quality can ease expansion into new markets as a result of the positive reputation it creates

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2-4-4-quality-management

Quality management methods

Methods of quality management

Continuous improvement (kaizen)

Comparison of kaizen and one-off improvements

Competitive advantage from quality management

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