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Quality ManagementYou do not install quality; you begin to work at it." - W. Edwards Deming Quality is one of the highly significant principles of management. A company that maintains quality in every aspect will have customer loyalty, consistent cash flows, and an edge over its rivals. Let's take a look at the importance of quality management and the consequences of poor quality. Quality Management SystemsQuality management is overseeing all the activities that should be carried out to uphold a desired level of excellence. This may include the determination of policies for quality, the creation and implementation of quality plans, quality control, and improvement. Quality management is considered crucial for the performance and progression of any organisation. Therefore, quality should be upheld at all levels in order for the organisation to flourish. Organisations may introduce quality management systems that will guarantee the quality standards of their products are maintained, with the aim to boost customer satisfaction and increase growth. Let’s look at some of the reasons why quality systems are important.
Quality improvement in organisations can be done by assessing the methods implemented over a period of time. There are several quality management systems or models that can assist in the collection and analysis of data. Though it’s vital to select a reliable QI model for guidance, it's more significant that the organisation completely commits to using overall QI processes and practices. Two examples of quality improvement may be observed through Toyota and Unilever: Despite some setbacks in the previous years, Toyota’s rise to be the best in the auto industry may be attributed to one factor: quality. One of the main reasons for its unparalleled quality is because its front-line workers participate in the improvement process. Toyota does it through three components. Firstly through a culture that encourages and inspires its on-floor workers to recommend local improvements. Management has developed a relationship on the basis of joint trust, confidence, and respect for their workers. Secondly, Toyota has a clear management process that allows the suggestions made by workers to reach top management. It has defined a standard process to perform work as a reference point for improvement and to make sure the objectives of the organisation are embedded in the front line. Lastly, it is the role and skills of employees that allows Toyota to make improvements. On-floor workers know the actual worth and value of every standard process and they possess the skills and knowledge to solve problems. Unilever uses its internal quality business school to allow its employees to develop profound quality expertise and essential business skills and therefore, ensure to provide top-quality, reliable, and sustainable products to their customers. Unilever also takes into account the viewpoints of its customers be it positive or negative. It often asks its customers to give feedback on their brands via its customer engagement centres, reviews, and rating on social networking sites. Quality Management StrategiesLet's take a look at the different forms of quality management strategies. Quality ControlQuality control is a form of inspection that makes sure products are up to quality standards. Quality control is necessary for developing a business that offers products that meet or surpass the expectations of customers. It also builds the foundation of an efficient organisation that lowers waste and functions at a higher level of productivity. Traditionally, quality inspectors in a company used to assess the accuracy of finished work and also check the quality of materials sent by the suppliers. This approach was considered as it was believed that several employees would not be willing to take the responsibility for poor quality and expert employees were needed to identify the suitability of a good for consumers. Advantages of inspection
Disadvantages of inspection
Quality AssuranceQuality assurance is a systematic method to determine if the goods or services match precise requirements. Due to the above-mentioned disadvantages, businesses have moved from quality control to quality assurance. This includes a change from assessment by inspectors to self-assessment. While quality control is a product-based process, quality assurance is process-based. Quality assurance is important because it ensures that the production process of a product aligns with the quality requirements and standards. The significance of quality assurance is that it ensures that finished products fulfil quality requirements. Advantages of quality assurance
Total Quality Management DefinitionTotal quality management (TQM) is a form of quality assurance. Total quality management (TQM) can be defined as a management approach that engages all employees in constant improvement. TQM is almost embedded in organisational culture. It utilizes strategy, data, and efficient communication to incorporate quality discipline into the culture, values, and activities in an organisation. Some of the benefits of TQM include higher productivity, diminishing costs and improved cost management, greater profitability, growing customer satisfaction, loyalty, and retention. KaizenSimilarly, Kaizen is another form of quality assurance. Kaizen is a method that creates constant improvement, centred on the notion that continuous and small alterations can eventually lead to noteworthy improvements. It is central to lean manufacturing and is greatly used in Toyota. It was established in the manufacturing sector to decrease defects, reduce waste, improve productivity, motivate worker purpose and responsibility and encourage innovation. Some of the benefits of Kaizen include: it promotes teamwork as employees work beyond their departments, fewer errors which lead to less supervision and inspection, it promotes scrutiny of processes with the aim of lowering mistakes and waste. Benefits and Difficulties of Improving QualityQuality management comes with its own set of benefits and limitations. Benefits of Improving QualityImproving the quality of a product/service a business can lead to the following benefits:
Difficulties of improving quality
The Consequences of Poor QualityPoor quality products and services might reflect negatively on a company. As a result, it may lead to various consequences including: The Reputation of a CompanyPoor quality products can ruin the reputation of a company. This will be damaging as customers are more likely to remember negative rather than positive news. A company that has no rivals might not suffer severely as customers do not have any other alternatives. However, in a competitive situation, poor quality can have drastic effects, particularly if the company’s reputation is based on quality. Decreased salesIf a product is not able to match the standards of the customers, then there will be a decrease in the demand for the product. For certain people, quality is considered a significant factor. So, poor quality will negatively impact future sales. Decreased pricePeople will only consider buying low-quality products if they provide appropriate value for money, thus the company will be compelled to reduce its prices to maintain sales. Consequently, reducing profit margins. Waste of resourcesPoor quality signifies waste, as products will be rejected if poor quality is detected at later stages. Increased CostsThere will be costs associated with poor quality such as costs for replacing material, wages paid to workers reworking products, cost of time spent transporting and checking recalled products, time for dealing with customer complaints, money wasted on products that will be discarded, and loss of reputation and goodwill of the company. Improving QualityHere are some of the ways in which organisations can further improve quality: A Comprehensive Quality Inspection ProgramQuality inspection is crucial in the process of manufacturing as it ensures a precise product design. It is generally the last opportunity for the manufacturer to detect any faults in design before the product is shipped, thus a detailed inspection process is important. Tracking ErrorsIf an organisation is dedicated to quality, it first needs a clear definition of what quality is. Once that is determined and standards are set, a comparison can be made between current practices and the quality standard. If there are a lot of differences then changes need to be made to produce the product up to the accepted standards in the organisation. Investment in TrainingIt is vital that workers are shown the history of the organisation via the lens of quality. Workers should be able to understand the problems faced by the organisation in the past, how they were resolved, and the significance of quality for the organisation today. The definition of quality and its measurement needs to be explained in detail. It is also essential to show the connection of an individual’s actions to the overall performance of the organisation. Arrange Quality CirclesOrganizing and arranging employees into quality circles can be an efficient approach to recognizing and tackling problems. In quality circles, a set of employees are motivated to evaluate processes and suggest improvements, with the aim to promote quality, proficiency, and productivity. Quality Management TechniquesThe main quality management techniques include: BenchmarkingBenchmarking is the process of taking performance metrics from the organisation and comparing it with those of industry leaders. This may lead to issues being identified more accurately and as a result targets for performance enhancements can be developed and applied. Identifying Quality IssuesBoth employees and management should consider quality issues as an opportunity for improvement. The organisation should view identifying issues that exist in the processes as a positive thing. Continuous Improvement ProcessThe continuous improvement process involves the ongoing enhancement of products, services, and processes. Rather than implementing large changes all at once, businesses should focus on implementing smaller changes continuously. Over the decades quality management has become a vital part of organisations as they have realized its importance and the benefits it brings. Nowadays, organisations are searching for advanced approaches and methods that will improve the quality of their products/services. This will eventually increase sales, increase customer satisfaction and customer retention, and growth and development for the organisation. Improving Quality - Key Takeaways
Frequently Asked Questions about Quality ManagementQuality management is overseeing all the activities that should be carried out to uphold a desired level of excellence. Total quality management (TQM) is a management approach that engages all employees in constant improvement. Quality management is important because it ensures:
The definition of quality is "the ability of a business to consistently meet the customers' requirements". The 7 quality management principles are: Final Quality Management Quiz
Question Which key factors customers keep in mind when buying a product based on the following factors: Show answer
Question Why is quality important for an organization? Show answer Answer Among the many factors, some of them include: to meet customer expectations, boost brand value and reputation, meet industry standards, reduce risk and cost. Show question
Question How does quality improve the reputation and value of a business? Show answer Answer With the increasing use of social media, customers can share their positive and negative feedback of a product/service.
Therefore, a sound reputation for quality could be an essential factor that can differentiate an organization in a market that is highly competitive. Show question
Question How does quality increase productivity? Show answer Answer Employees understand the importance of quality and they realize and comprehend that they are working on a product that is exceptional and
high on quality. Show question
Question Are customers willing to pay a higher price for a superior quality product? Show answer
Question Write an example of quality management? Show answer Answer Coca-Cola ensures to implement vigorous globally accepted methods and processes. The quality assurance and control at Coca-Cola
starts from the very beginning as the manufacturing plant site is approved and the source water and carbon dioxide are used only when it meets the company’s standards. It makes sure that the bottles are recycled and sterilized before usage. It tries to make a product that will meet the customer expectations and eventually result in loyal customers leading to increased revenues. Show question
Question An organization gives utmost importance to quality because of: Show answer
Question How can quality culture be attained? Show answer Answer Quality culture can be achieved through active engagement with customers and also through tracking quality performance with
not just the help of the marketing and sales department but also via all levels of the organization. Show question
Question What is the significance of quality culture? Show answer Answer Organizations that promote the development of quality culture generally undergo low employee turnover and employee disappointment, and
higher successful regulatory assessments. Show question
Question What is the importance of Quality control? Show answer Answer Quality control is necessary to develop a flourishing business that offers products that meet or surpass the
expectations of customers. It also builds the foundation of an efficient organization that lowers waste and functions at a higher level of productivity. Show question
Question What is quality assurance? Show answer Answer Quality assurance is a continuous effort to improve the quality practices. Show question
Question What is quality assurance? Show answer Answer Quality assurance is a continuous effort to improve the quality practices. Show question
Question What is the importance of quality assurance? Show answer Answer Quality assurance is important because it ensures that the production process of a product aligns with the quality standards. Show question
Question What are the indicators to identify quality? Show answer
Question What is the performance indicator in product quality? Show answer Answer Major operating characteristics of any product, are generally quantifiable, for example, consumption of fuel of a car, capacity of a hard-disk in a computer. Show question
Question Can quality be measured for intangibles as well? Show answer Answer Some intangibles can be measured, for example, customer complaints and others can't, such as reputation. Most intangibles are built on
attitudes and perceptions and therefore can be measured in different ways. Show question
Question Is quality the same for all people? Show answer Answer Quality is very general and denotes diverse things to different people. If two individuals describe a similar product as a good quality
product might not actually mean alike things. Show question
Question What does the term ‘serviceable’ denote in product quality? Show answer Answer It is the pace with which the product can be serviced when there is a breakdown. Show question
Question List the different factors that help to identify and measure the quality aspect of a product? Show answer Answer Performance, features, durability, dependability, durability, conformance,
etc. Show question
Question List the different factors that help to identify and measure the quality aspect of a service? Show answer Answer Tangible (equipment and infrastructure), dependability, receptiveness, competence,
courteousness, integrity, accessibility and communication. Show question
Question Is quality defined according to the perception of the customer? Show answer Answer Quality is a matter of an individual’s preferences and what comprises a satisfactory level of quality
will differ from person to person. Show question
Question Should the quality check be done during the process or once the product is finished? Show answer Answer The quality checks should be done during the process because if there are errors in the initial
stages in a process but they are not noticed until an advanced stage, the work done is wasted amid when the error occurred and when it is caught. It is essential to do the quality checks in between so that the process can be improved. Show question
Question What is the right way to test products? Show answer Answer Testing every product may be very expensive for the organization, therefore, it is much better to do sample testing in order to see if the
products are good enough. Show question
Question Why should the organization outline the characteristics associated with the customers? Show answer Answer Measurement can be beneficial both at a comprehensive level in the process and at an advanced
level linking precisely to the outcome of customers. Show question
Question Why should the standards correlate with the quality threshold? Show answer Answer Standards are ineffective if they are set higher than required without adding to the
quality. Show question
Question What quality components can an organization measure? Show answer Answer Organizations can measure quality components such as the number of products being returned, failure rate, complaints
by customers, customer satisfaction, customer loyalty and retention which is apparent from repeat buying. Show question
Answer It stands for Total quality management. Show question
Answer Total quality management is a process that makes sure that all the work targets a mutual objective to improve product/service quality. Show question
Question Is TQM used only for improving the product in an organization? Show answer Answer No, TQM is used for the improvement of not just the products but also for better delivery of services. Show question
Question How has TQM helped Apple Inc. to improve its product? Show answer Answer TQM has helped the leadership comprehend the requirements of the employees and satisfy their needs in the finest way. This makes them feel like an integral part of the organization so they are motivated to deliver their best. TQM also promotes training and Apple has developed several training programs for its employees. Show question
Question Why are customers one of the main focuses of TQM? Show answer Answer The primary focus is on the customers because they are the ones who buy the product/service and decide about the quality. If an
organization understands what its customers need then it will result in more sales, increasing revenues and market share. Show question
Question Why is the dedication of employees so essential for TQM? Show answer Answer It is important that the employees understand the objectives of the organization. The productivity, process, or even sales
cannot be increased without the dedication from all the employees. Show question
Question What is the importance of communication in TQM? Show answer Answer It is important to communicate the goals and objectives of the organization in detail throughout the workforce. The
organization can develop an official line of communication that keeps all the employees up to date regarding the policies and changes. Show question
Question What should an organization do for continuous improvement? Show answer Answer An organization should recognize and promote innovation to enhance processes. In this manner, the organization will have more knowledge and competence to improve performance. Show question
Question List one advantage of TQM? Show answer Answer Better products are being produced as the emphasis is on utilizing higher quality information to enhance. Show question
Question List one disadvantage of TQM? Show answer Answer It may take many years for the full implementation of the program before results and advantages are seen. Show question
Question What are the four stages of TQM? Show answer Answer 1. The planning stage. 2. The doing stage. 3. The checking stage. The acting stage. Show question
Question What is needed for the planning stage? Show answer Answer For this, detailed research is done by the employees in order to gather appropriate data, with the understanding to find answers for
their problems. Show question
Question What happens in the ‘doing stage’’’ of TQM? Show answer Answer In this stage, employees try to discover solutions to the problems in the first phase. Strategies are developed and implemented in order to
resolve the problems being faced at work. In addition, the assessment of the effectiveness of strategies and solutions is also completed in this stage. Show question
Question When did the evolution of quality management start? Show answer Answer Some of the main notions of quality control can be trailed back to the 13th century where strict product quality standards were
established. Show question
Question Who introduced the statistical sampling procedures? Show answer Answer It was introduced by Walter A. Shewhart. Show question
Question Why was there a need for a quality management system? Show answer Answer In the 1920s a constantly increasing demand for better productivity showed a breakdown in quality
control, it became obvious that there is a need to create a more vigorous, structured, and reasonable methodology to quality. Show question
Question When did the modern transformation of quality management systems start? Show answer Answer The modern transformation of quality started in the 1970s when the quality of the products from Japan outshined those of the USA
and Europe. Show question
Question When was the foundation of TQM laid? Show answer Answer In the 1950s, W. Edwards Deming taught the processes for statistical analysis and quality control to Japanese engineers and managers.
This can be regarded as the foundation and origin of TQM. Show question
Question What is the term used to define quality control by the Japanese? Show answer Answer The Japanese titled their method from total quality ‘company-wide quality control’. It was at this period
that the term ‘quality management system’ appeared. Show question
Question Why is TQM important for organizations? Show answer Answer Total quality management is absolutely essential in organizations today. It is vital for organizations to attain customer
satisfaction. Also implementing TQM during the production of the product can facilitate the organization to make a product that works precisely as it states. Show question
Question What is the criticism regarding TQM? Show answer Answer The argument presented is that these programs may lack their impulse over a period of time. TQM is not an add-on of the organization; instead, it
should be incorporated with and undifferentiated from daily activities. Show question
Question What is the foundation of TQM elements? Show answer Answer The foundation is ethics and integrity. Show question
Question What is the significance of ethics and integrity? Show answer Answer Ethics is the discipline related to good and bad in any circumstance. Integrity denotes fairness and Its feature is what customers assume and deserve to get. Show question
Question What are the building blocks of the TQM group of elements? Show answer Answer The building blocks include training, teamwork, and leadership. Show question Discover the right content for your subjectsNo need to cheat if you have everything you need to succeed! Packed into one app!Study PlanBe perfectly prepared on time with an individual plan. QuizzesTest your knowledge with gamified quizzes. FlashcardsCreate and find flashcards in record time. NotesCreate beautiful notes faster than ever before. Study SetsHave all your study materials in one place. DocumentsUpload unlimited documents and save them online. Study AnalyticsIdentify your study strength and weaknesses. Weekly GoalsSet individual study goals and earn points reaching them. Smart RemindersStop procrastinating with our study reminders. RewardsEarn points, unlock badges and level up while studying. Magic MarkerCreate flashcards in notes completely automatically. Smart FormattingCreate the most beautiful study materials using our templates. Sign up to highlight and take notes. It’s 100% free. This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Privacy & Cookies Policy What processes are involved in producing the goods or services?Explain the nature of production.
Generally, three major activities are involved in producing goods or services: product development, planning for production, and operations control.
Which of the following is the amount of products or services an organization can produce in a given time?Throughput, in business, is the amount of a product or service that a company can produce and deliver to a client within a specified period of time.
How is production of services different from the production of manufactured goods?DIFFERENCES BETWEEN MANUFACTURING AND SERVICE ORGANIZATIONS
First, manufacturing organizations produce physical, tangible goods that can be stored in inventory before they are needed. By contrast, service organizations produce intangible products that cannot be produced ahead of time.
What specialized type of management converts human resources into goods and services?Operations management — A specialized area in management that converts or transforms resources (including human resources) into goods and services. Operations management includes: Inventory management. Quality control.
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