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IB BUsiness MAnagement:
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Key Learning Outcomes:
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A manufacturer on the importance of quality |
Quality is important
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Quality and Quality AssuranceConsumer expectations will be very different for goods and services sold at different prices. a quality product does not have to be made with the highest quality materials to the most exacting standards - but it must meet consumer requirements for it.
In certain cases, a product must meet the highest quality standards and the high cost of it becomes almost insignificant. Internal parts for a jet engine used on a passenger plane will be expected to have a failure rate of less than 1 in 1 million. However, if a pair of jeans was made to the same exacting standards with regards to stitching, buttons, zips, and so on - how much would a pair of jeans cost then? Designing too much quality into a product that consumers do not expect to last for many years can make the product very expensive and uncompetitive. A quality product does not need to be expensive. If low-cost lightbulbs and clothes pegs last for several years in normal use, then they have still met consumer expectations and have been of the required quality. So, a highly priced good may still be of low quality if it fails to come up to consumer requirements. A cheap good can be considered of good quality if it performs as expected. It should now be clear that quality is a relative concept and not an absolute one - it depends on the products price and the expectations of consumers. |
Quality control is the traditional approach to achieving quality based on inspection or checking, usually of the completed product or of the service as it is being provided to a consumer. Examples of quality control failure are illustrated in the videos below.
Big brands, big quality fail! IBig brands, big quality fail! IIQuality product: A good or service that meets customers' expectations and is therefore 'fit for purpose'.
Quality standards: The expectations of customers expressed in terms of the minimum acceptable production or service standards. |
The advantages of producing quality products and services:
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Quality control and quality assuranceQuality control: This is based on the inspection of the product or a sample of products.
Quality assurance: This is a system of agreeing and meeting quality standards at each stage of production to ensure customer satisfaction. |
Quality Control
Quality control: This is based on the inspection of the product or a sample of products.
3 stages of effective quality control:
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Weaknesses of inspecting for quality:
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Quality Assurance in Manufacturing:
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Quality Assurance in Manufacturing:
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Quality Assurance
Quality assurance: This is a system of agreeing and meeting quality standards at each stage of production to ensure customer satisfaction is achieved.
It does not just focus on the finished product. This approach does involve self-checking by workers of their own output against these agreed quality standards. Toyota: Quality Assurance |
How quality assurance is different from quality control:
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Why it is important to establish quality assurance systems:
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Advantages of Quality Assurance
The importance of reviewing quality assurance systems |
INternational quality standardsA standard is a document that provides requirements, specifications, guidelines or characteristics that can be used consistently to ensure that materials, products, processes and services are fit for their purpose.
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ISO 9000ISO 9000: Internationally recognised certificate that acknowledges the existence of a quality procedure that meets certain conditions.
To obtain ISO 9000 accreditation a firm must show that it has:
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Quality Assurance: Case Study I |
Quality Assurance: Case Study II |
Total Quality Management (TQM)This approach to quality assurance requires the involvement of all employees in an organisation. It is based on the principle that everyone within a business has a contribution to make to the overall quality of the finished product. Workers should be empowered with the responsibility of checking quality level before passing their work onto the next production stage. By reducing waste and cost of rejected low-quality products TQM is a key component of the approach to operations management known as lean production.
TQM aims to cut the costs of faulty or defective products by encouraging all staff to 'get it right first time' and to achieve 'zero defects'. Under TQM, if quality is improved and guaranteed, then reject costs should fall and demand for the product rises over time. However, TQM will only work if everyone in the firm is committed to the idea. It cannot just be introduced in one section of the business if defective products coming from other sections are not reduced. The TQM philosophy requires a commitment from senior management to allow the workforce authority and empowerment, as TQM will not work in a rigid and authoritarian structure. Internal customers: People within the organisation who depend upon the quality of work being done by others. Zero defects: The aim of achieving perfect products every time. |
TQM explainedTotal quality management (TQM) : An approach to quality that aims to involve all employees in the quality improvement process.
Lean Production explainedLean production: Producing goods and services with the minimum of wasted resources while maintaining high quality
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TQM Case Study I |
TQM Case Study II |
Kaizen - Continuous ImprovementKaizen is a Japanese term meaning continuous improvement. The Kaizen philosophy suggests that, in many cases, workers actually know more than managers about how a job should be done or how productivity might be improved.
Another key feature of this idea is that improvements in productivity do not just result from massive one-off investments in new technology. A series of small improvements, suggested by staff teams, can, over time, amount to as big an improvement in efficiency as a major new investment. Conditions necessary for Kaizen to operate:
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Kaizen - Lean ManagementToyota and KaizenLimitations of Kaizen
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Kaizen: Case Study I |
Kaizen: Case Study II |
Andon in Lean manufacturingAndon is derived from a Japanese term for a type of paper lantern. In manufacturing, Andon systems provide visual feedback to the plant floor. Typically, Andon systems indicate line status, show when assistance is needed (e.g. supervisor or maintenance calls), and empower operators to stop the production process if quality issues arise.
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In lean manufacturing, Andon refers to any visual display that shows status information on the plant floor. The first Andons in manufacturing were simple lights that enabled operators to signal line status based on color: green for normal operation; yellow when assistance was needed; and red when the line was down. Today, more sophisticated visual displays are often used for Andons, but their purpose – efficient, real-time communication of plant floor status – remains the same.
Lean Manufacturing Andon are powerful and effective communication tools that:
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Cradle to cradle design and manufacturingWith cradle to cradle manufacturing, production is guaranteed by certification that the whole production process is fully sustainable for future generations.
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This framework seeks to create production techniques that are not just efficient but are essentially waste free. In cradle to cradle production all material inputs and outputs are seen either as technical or biological nutrients. Technical 'nutrients' can be recycled or reused with no loss of quality and biological nutrients composted or consumed.
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5.3 Lean Production and Quality MAnagement:
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5.3 LEAN PRODUCTION AND QUALITY MANAGEMENT:
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Progress check - test your understanding by completing the activities below
You have below, a range of practice activities, flash cards, exam practice questions and an online interactive self test to ensure you have complete mastery of the IB Business Management requirements for the Operations Management 5.3 Lean Production and Quality Management topic.
IB BUSINESS MANAGEMENT QUIZZES AND TWO CLASSROOM GAMES
Test how well you know the IB Business Management Operations Management 5.3 Lean Production and Quality Management topic with the self-assessment tool. Aim for a score of at least 80 per cent.
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