5.4 - Quality Management
The differences between quality control and quality assurance
Quality management helps businesses ensure their products and services meet customer expectations, reducing waste and building reputation. Two main approaches are quality control (QC) and quality assurance (QA), which differ in focus and methods.
Quality control
Quality control involves checking products after production to identify defects.
Key features:
- Traditional method using dedicated quality controllers to inspect output
- Focuses on detecting and fixing defects rather than preventing them
- Involves systematic or random checks, such as inspecting every 300th item or 15% of production
- Aims to meet the organisation's quality standards by setting acceptable levels of defects or waste
- Product-focused and reactive, with checks happening after production
Quality assurance
Quality assurance aims to prevent mistakes throughout the production process.
Key features:
- All workers check quality as part of their roles, not just inspectors
- Shared responsibility among staff, which can enrich jobs by giving more involvement
- Establishes codes of practice to inform customers about quality procedures
- Targets zero defects and minimal waste for greater efficiency
- Process-focused and proactive, embedding quality at every stage
Quality circles and their role in quality improvement
Quality circles are groups of employees who meet to solve work-related problems, drawing on ideas from experts like Professor W. Edwards Deming. Deming suggested that employees should take 85% of the responsibility for quality, rather than leaving it mostly to managers. This approach, popular in Japanese management, emphasises prevention over inspection.
Requirements for effective quality circles
- Small, voluntary groups meeting regularly to identify and resolve quality issues
- Members trained in problem-solving techniques
- Support from senior management, including funding and resources
- Focus on kaizen, which means continuous improvement in processes
- Applicable to most organisations, from factories to service providers
Limitations of quality circles
Quality circles can create clear targets for blame if quality problems persist, potentially affecting team morale.
Benchmarking as a quality management tool
Benchmarking involves comparing a business's performance or products against standards to identify areas for improvement. It acts as a strategic tool to boost competitiveness by learning from best practices.
Types of benchmarking
- Internal benchmarking - Compares different parts of the same organisation to spread successful methods
- External benchmarking - Measures against top competitors or industry leaders, though this can be time-consuming and costly
Key aspects of benchmarking
- Uses quantifiable standards like sales figures, profit levels, staff turnover rates, or brand loyalty scores
- Often includes subjective elements, such as customer satisfaction feedback
- Conducted regularly, for example quarterly for profits or annually for market share
- Helps organisations set goals and track progress objectively
Total quality management and its advantages and disadvantages
Total quality management (TQM) is an organisation-wide approach to quality that involves everyone in improving products, processes, people, and company culture. It promotes a zero defects mindset and integrates tools like benchmarking and kaizen for ongoing enhancements.
Features of total quality management
- Builds quality awareness into all business processes
- Empowers every employee to take responsibility for quality
- Adopts a philosophy of zero defects to eliminate waste, aligning with lean production
- Commits to continuous improvement across the organisation
- Uses benchmarking to compare and refine quality-related activities
Advantages of total quality management
- Boosts employee involvement in decisions, improving motivation
- Creates a competitive edge by focusing on customer needs
- Cuts costs by removing the need for inspections and rework
- Leads to higher quality output and consistent branding
- Enhances long-term profitability through efficiency gains
Disadvantages of total quality management
- Demands major changes in attitudes and commitment from all staff
- Involves high costs for training and development
- Not all employees adapt well to increased responsibility
- Requires expenses for quality certification from external bodies
How total quality management improves competitiveness
- Produces reliable products that meet customer requirements
- Builds trust and confidence among consumers
- Motivates staff through involvement and pride in work
- Reduces overall costs, allowing for better pricing or higher profits
Consequences of poor quality management
Poor quality management leads to product failures, delivery delays, or unclear instructions. It also increases costs from customer complaints and compensation.
National and international quality standards
Quality standards provide benchmarks for businesses to demonstrate consistent performance. ISO 9000, awarded by the International Organization for Standardization (ISO), is a key international standard that requires evidence of ongoing quality improvements to meet customer needs.
Advantages of meeting quality standards
- Offers marketing benefits through recognised quality symbols
- Helps differentiate from rivals and build brand loyalty
- Allows for premium pricing due to perceived higher value
- Improves worker motivation and sense of achievement
Disadvantages of meeting quality standards
- Involves high costs for training and new technology
- Requires payments for external inspections and audits
- Leads to ongoing certification fees
- May result in higher prices that some customers resist