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Enhancing Business Performance Through Effective Quality Operations

Quality is pivotal for any business, encompassing both tangible and intangible measures that satisfy and delight customers. Tangible factors include appearance, reliability, durability, and after-sales service, while intangible aspects focus on brand image and reputation. Businesses can adopt quality systems such as quality control, emphasizing inspection, or quality assurance, aiming for error-free processes. Implementing Total Quality Management (TQM) and Kaizen fosters a culture of continuous improvement and employee responsibility, leading to reduced costs and enhanced customer satisfaction.

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Enhancing Business Performance Through Effective Quality Operations

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  1. Chapter 24: Developing Effective Operations QUALITY

  2. Quality • Those features of a product or service that allow it to satisfy (or delight) customers • Tangible measures of quality: • Appearance • Reliability • Durability • Functions (added extras) • After-sales service: cost, promptness, effectiveness • Repair and maintenance needs • Intangible measures of quality: • Image and brand • Reputation • Exclusiveness

  3. Importance of quality to a business Quality System – the approach used by an organisation to achieve quality. Most quality systems can be classified as either quality control or quality assurance.

  4. Quality Control • A system that uses inspection as a way of finding any faults in the good or service being provided.

  5. Quality Assurance • A system that aims to achieve or improve quality by organising every process to get the product “right first time” and prevent mistakes ever happening • Benefits: • Ownership of the product or service rests with the workers rather than with an independent inspector, giving them greater responsibility • Theorists such as Herzberg argue that there are positive effects on motivation because of this sense of ownership and recognition of the worker’s responsibility • Costs are reduced because there is less waste and less need for reworking of faulty products • With all staff responsible for quality, there should be a higher and more consistent level of quality, which can lead to marketing advantages for the firm.

  6. Systems of Quality Assurance • Total quality management (TQM) – a culture of quality that involves all employees of a firm • Kaizen (“continuous improvement”) – a policy of implementing small, incremental changes in order to achieve better quality and/or greater efficiency • Quality Standards – a set of criteria for quality established by an organisation. IE: BS 5750, ISO9001

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