Quality Management (Edexcel A Level Business)

• Quality considers the characteristics and features of a product that satisfy the needs of customers
  
  
• Businesses need to maintain a level of quality that continues to attract and retain customers
  
  
• There are a number of approaches to managing quality in the production process
  
  

Methods of Quality Control

• Kaizen involves a business taking continuous steps to improve productivity through the elimination of all types of waste in the production process
  • Changes are small and ongoing rather than significant one-off’s and are constantly reviewed to ensure that the desired positive impact on productivity is achieved
     

Kaizen Versus One-off Improvements

• Elements of Kaizen commonly include
  • Total Quality Management
  • Just in Time stock management
  • Team Working and quality circles
  • Zero defects  in manufacturing
  • High levels of automation
  • High levels of cooperation between workers and management
• Kaizen requires a long-term management commitment to change 

• The quality of a businesses products can provide a competitive advantage
  
  
  • Unit costs are likely to be low if a business takes a preventative approach through the use of quality assurance or TQM
    • Low costs may allow a business to reduce its selling price to better compete with or undercut its rivals
      
  • Increased finance may be available to fund marketing activity to improve brand recognition and attract new customers 
    
    
  • High levels of quality can be used in promotional activity and provide a unique selling point for businesses in competitive markets
    
    
  • Successfully developing a USP for quality can ease expansion into new markets as a result of the positive reputation it creates