GCSE Business

Business Operations
QUALITY
CONTROL
Quality AT WORK
Quality Quality Assurance
Definition: Involves meeting a standard for a Definition: A guarantee given by producers to consumers
good or service to meet consumer needs and that certain standards have been met throughout the
expectations.
Quality Control
production process. Legal standards have been met and /
Definition: Involves inspecting a sample of goods or codes of practice have been followed.
Businesses will try to achieve quality through:
produced at the end of the production process to
• Purchasing the right raw materials Quality assurance involves:
ensure that specifications have been met. Goods
and components ➔ the quality of the
which do not meet the standards are scrapped or are
materials will directly influence the quality • checking/inspecting quality at each stage of the
sold as seconds.
of the end product production process
• Having the best production processes • quality is the responsibility of everyone throughout the
Advantages:
➔ ensure that each stage is completed to process
the required standard • achieved through a system of total quality
☑ Inspection is carried out by a specialist
• Employing the right people ➔ making management
☑ Reduces the risk of a faulty product reaching the
sure that they have the right skills and • making everyone in a business responsible for quality
customer
level of motivation to take pride in work • each employee treats the next person as if they are a
☑ Problem areas can be identified and action taken
• Training employees ➔ equipping them customer and ensures what they pass on to them is of
with the necessary skills to produce the the correct quality
Disadvantages:
product
• Implementing quality assurance and Quality assurance requires staff to consider:
☒ Waste levels can be high as a fault will only be
quality control ➔ making sure that the
found at the end of the process
end product is the best that it can be • what suppliers they are using to make sure the
☒ Requires specialist personnel
☒ Operatives may feel demotivated as they are supplies used do not create problems
“being checked up on” • training staff so they can check their own work rather
than waiting for it to be inspected
• providing the equipment and technology to allow
employees to check their own work
TECHNICAL

Advantages:
QA Quality Awards
DELAYS

SUPPLIERS

LOADING PRODUCTION
TRUST PACKAGING SAFETY
QUALITY
Definition: Evidence of high standards ☑ Motivated staff as everyone is given responsibility
ISO MATERIALS
– these show customers that certain
INSPECTION

☑ Focus on quality throughout the process

AQL IQC standards have been met.
CONTROL
☑ Less waste from reworking or scrapping faulty goods
PDI
SPEED

AUDIT FRUSTRATION
☑ Better reputation due to quality products
CUSTOMER OPERATIONS
SECURITY
PARTNERS

Disadvantages:
CHALLENGES
ASSEMBLY Wastage Q
UALITY

Definition: Occurs when products cannot be sold ☒ Relies on commitment of all staff
because they are of poor quality, or damaged, or ☒ Training must be provided

AS
SU C

E
stock is out of date. ☒ Productivity can be reduced RAN
 GCSE Business
Business Operations
PROCESS MANAGEMENT

WORKFORCE
Total Quality Management (TQM) Ways in which businesses can ensure
Definition: Creates quality through TOTAL QUALITY that they provide high quality goods and

MANAGEMENT
continuous improvement, development of services
systems and products and by creating an
organisational culture of quality. • Well designed products ➔ use of CAD/skilled
ORGANISATION designers
For TQM to be effective a number of ANALYSIS • Quality of workers ➔ qualifications ➔ training ➔
CHECK
production management and control skills ➔ experience
methods need to be used: • Motivation ➔ financial/non-financial explained ➔
job production
• Quality chains ➔ the next person in the
The importance of quality to a business • High quality materials ➔ to ensure products less
production process (chain) is treated as a likely to break
Satisfying and increasing customer expectations
customer and customer satisfaction is the • Investment in up-to-date machinery ➔ CAM/CAD ➔
• To gain and retain customers ensure products more accurately made
objective.
• Repeat custom • Quality control ➔ e.g. supervision / inspectors /
• Empowerment ➔ giving workers control
• Word of mouth advertising checking
over tasks completed.
• Brand loyalty • Dealing with complaints/listening to customers ➔
• Monitoring ➔ checking that standards at
each link in the chain are being achieved to give confidence ➔ customer feedback
Increasing sales • Belonging to professional organisation/Quality
and the use of statistical tools to measure
• Reputation of the business standards ➔ to give confidence
levels of failure to achieve quality.
• Positive image to consumer • Quality assurance ➔TQM ➔ quality circles ➔ kaizen
• Teamwork ➔ a team is responsible
• Positive word of mouth
for a production process ➔ the team
• Improved customer
is empowered to check the quality
satisfaction
of raw materials, interact during the
T Y EXCE
WORSQUALIT
STS SS
installation process and check the quality EXCECSKOCK EXCESS
BEST
EXCSTEO STOC SS
of the finished product ➔ implies that STOCSS
K
SS EXCECK
Reducing cost and waste K EXCECK STO
responsibility lies within the team ➔ can STO
• Reduce product returns and recalls
build trust and morale, whilst improving
• Avoid negative publicity
communication between members.
• Cost of recall and reworking faulty goods
• Quality circles ➔ employee involvement
• Dealing with customer complaints
Consequences of bad quality goods and
in the decision-making and product- services
• Loss of trust
improvement process ➔ employees meet
to identify and solve problems. • Customers will be lost ➔ dissatisfied customers will
• Zero defects ➔ attempting to achieve look elsewhere
perfect product quality, time after time. • The reputation of the business will suffer ➔ they
• Benchmarking ➔ the process of setting may develop a reputation for faulty or poor standard
standards of quality and output which are OR products and services
QUALITY ST
QUALITY

based on the best that competitors can • Increased costs ➔ in wastage and the recall and
offer. W CO ANT?
LO NE DO YO
UW replacement of faulty products
WHICH O
CUSTOMER
• Storage costs ➔ for unwanted products that
SATISFACTION consumers do not want
• Legal action ➔ if the product causes harm to
consumers