Business - 9225 OxfordAQA

The Concept Of Quality

Overview

A bakery in Ibadan sells two thousand loaves a week. One Tuesday the mixer is loaded a minute short and forty loaves come out heavy and damp in the middle. Eleven of them are returned. The owner refunds eleven loaves, which costs her almost nothing, and thinks the problem is over. Six weeks later her Tuesday sales are down by two hundred loaves and she cannot work out why. The eleven refunds were never the cost of that batch. The cost was the customers who said nothing, did not come back, and told their neighbours.

This lesson is about that gap between what a quality failure appears to cost and what it actually costs. You will pin down what quality means in this course, which is not the same as expensive, and see how a business finds out whether it has a problem before its customers tell it. You will learn total quality management as a way of organising a whole workforce around getting things right the first time, weigh the real costs of maintaining quality against the real benefits, and finish with the situation the specification singles out: what happens to quality when a business grows and hands work to people it does not employ.

Objectives

  1. Consequences of quality issues.
  2. Methods of maintaining consistent quality: Total quality management (TQM).
  3. Costs and benefits of maintaining quality.

Mind map

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Lesson Note

Go back to the bakery. The owner measured her quality failure the way most people do: she counted the complaints. Eleven loaves came back, so eleven loaves went wrong. That number felt manageable and it was wrong by a factor of twenty, because it counted only the customers who bothered to complain. The other twenty-nine people who bought a damp loaf did the ordinary human thing. They threw it away, said nothing, and quietly started buying bread somewhere else.

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Lesson Evaluation

Congratulations on completing the lesson on The Concept Of Quality. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.

You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.

Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.

  1. Which one of the following best describes quality in a business? A. Charging the highest price in the market B. Meeting the expectations the customer has of the product C. Using the most expensive materials available D. Employing the largest number of inspectors Answer: B
  2. In total quality management, who is responsible for quality? A. A separate inspection department B. The production manager only C. Every employee in the business D. The business's suppliers Answer: C
  3. A factory makes 8,000 units a year and 5 per cent are rejected. How many units are rejected? A. 40 B. 160 C. 400 D. 4,000 Answer: C
  4. Which one of the following is a cost of maintaining quality rather than a benefit? A. Fewer products returned by customers B. Extra training for production staff C. A stronger reputation with customers D. Less material wasted as scrap Answer: B
  5. Why does franchising make it harder for a business to control quality? A. Franchisees are employees who cannot be dismissed B. Franchisees keep the saving from cutting corners but share the damage to the brand C. Franchising always means using cheaper materials D. Franchised outlets are not allowed to be inspected Answer: B

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