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Achieving quality production

Business Studies 0450 Chapter Notes

What this chapter covers

Achieving quality production - Why quality is important and how quality production might be achieved
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In this chapter

  1. 1Why quality matters to a business
  2. 2Quality control
  3. 3Quality assurance
  4. 4Control or assurance: telling them apart
  5. 5Judging and recommending a method

1. Why quality matters to a business

A quality product is one that is not faulty or defective when it is sold. Quality matters to all businesses, because it affects both their sales and their costs.

A business with good quality gains a better reputation and brand image. Customers stay loyal and buy again, which raises sales and market share. The business also has less rework and fewer returns, so it wastes less.

Quality also gives a business a competitive advantage and lets it charge higher prices. A good answer explains the effect on the business, not on the customer.

Examiner insight

“Many candidates identified brand image, customer loyalty and not having to replace faulty products as important factors.” “Some weaker responses offered repetition of points or focused on the importance to customers rather than the business and consequently did not earn the highest level of reward.”

Worked example 14 marks

Identify four reasons why quality might be important for a business.

  1. 1

    Knowledge: better reputation / brand image, or good reviews [1]

  2. 2

    Knowledge: customer loyalty, so customers will buy again [1]

  3. 3

    Knowledge: higher sales, revenue or market share [1]

  4. 4

    Knowledge: less rework, fewer returns or less wastage [1]

2. Quality control

Quality control is checking products to find faulty ones. It is usually carried out at the end of production, so that defective products are not sold.

A business implements it by employing inspectors who check the finished products. Only some products may be checked, so it cannot ensure that no errors reach customers.

Its benefit is that errors are removed before a customer receives the product. However, faults are found late, so remaking products is costly. It can also be difficult to identify where the fault occurred. Inspectors raise wage and training costs.

Examiner insight

“Many candidates understood that quality control involved checking the work done.” “Many incorrectly stated that this method would ensure that no errors would appear in the product, showing lack of awareness that only some products would be checked.”

Worked example 16 marks

Kasa Bikes makes 40 steel bicycle frames a day in a small workshop. Each frame is cut, welded and then painted. Two inspectors check each frame for cracks once it is finished.

Explain two disadvantages to Kasa Bikes of using quality control.

  1. 1

    Knowledge: faults are found only at the end of production [1]

  2. 2

    Application: a cracked frame at Kasa Bikes has already been welded and painted [1]

  3. 3

    Analysis: the steel, paint and labour are wasted when the frame is remade, so costs rise [1]

  4. 4

    Knowledge: it is difficult to identify where the fault occurred [1]

  5. 5

    Application: a crack could come from the cutting stage or the welding stage [1]

  6. 6

    Analysis: the cause is not put right, so the same fault appears in later frames [1]

3. Quality assurance

Quality assurance is checking quality throughout production, not only at the end. Errors are spotted earlier in the process.

A business implements it by training employees and making each worker responsible for the quality of their own stage. Workers are not constantly watched. They are encouraged to take responsibility for quality, so they may feel more trusted and motivated.

Because errors are sorted out quickly, there is less rework and less wastage. However, all employees need training, and this can be expensive.

Examiner insight

“A common mistake was to confuse the term with quality control by referring to inspectors or checks being carried out at the end of the production process.” “A common misconception about quality assurance was to assume workers are constantly watched, when in fact, they are encouraged to take responsibility for quality throughout the process.”

Worked example 14 marks

Marlow Biscuits bakes 5000 packs of biscuits a day. Each baker checks the dough, the oven temperature and the baked biscuits at their own stage.

Outline one advantage and one disadvantage to Marlow Biscuits of using quality assurance.

  1. 1

    Knowledge (advantage): errors are spotted earlier, so there is less wastage [1]

  2. 2

    Application: a mixing mistake is found at the dough stage, before the biscuits are baked [1]

  3. 3

    Knowledge (disadvantage): all employees need training, which is expensive [1]

  4. 4

    Application: every baker must be trained to check the dough and the oven temperature [1]

4. Control or assurance: telling them apart

Quality control checks at the end of production. Quality assurance checks throughout production. Both are ways to maintain quality production.

A business may also maintain quality by training or recruiting skilled employees, using quality materials, or using quality machinery and new technology. Name the method itself. A vague phrase such as "quality checks" does not identify it.

To gain full marks, name the way, apply it to the business in the question, and explain how it keeps quality up.

Examiner insight

“A common error was to state that quality control occurred throughout the processes and quality assurance at the end rather than the other way round.” “Some candidates reversed the two concepts and incorrectly referred to employing inspectors as part of quality assurance.”

Worked example 16 marks

OBZ uses job production to manufacture carpets. The business has 80 employees. OBZ's operations manager is considering different ways to maintain quality production in the factory.

Explain two ways OBZ could maintain quality production.

  1. 1

    Knowledge: use quality control [1]

  2. 2

    Application: finished carpets are checked before they leave the factory [1]

  3. 3

    Analysis: products are checked at the end of production, so defective products are not sold [1]

  4. 4

    Knowledge: use quality assurance [1]

  5. 5

    Application: checks are made when making carpets [1]

  6. 6

    Analysis: quality is checked throughout production [1]

5. Judging and recommending a method

A question may ask which method a business should choose. Explain the advantages and disadvantages of each method in the context of the business. Then make a recommendation and justify it.

Do not repeat earlier points as the reason. Give a new reason why your choice suits this business better, and say why the other method is less suitable.

Be careful to answer about methods of quality. Explaining why quality is important does not answer the question.

Examiner insight

“Better candidates included a recommendation that justified one method, gave a reason for this choice without simply repeating earlier benefits and then justified why the alternative method was rejected.” “In the recommendation at the end of the response candidates need to balance the two options and justify which would be the most appropriate way to ensure the highest quality of production to earn level 3 reward.”

Worked example 16 marks

Pennine Pottery makes 300 mugs a day. Skilled potters shape and glaze each mug by hand. At present, three inspectors check every mug before it is packed. Many potters say they have little say in their work.

Do you think quality assurance is a better way than quality control for Pennine Pottery to achieve quality production? Justify your answer.

  1. 1

    Knowledge: quality control checks products at the end of production [1]

  2. 2

    Analysis: a flawed mug is found late, so its clay and glaze are wasted when it is remade [1]

  3. 3

    Knowledge: quality assurance checks quality throughout production [1]

  4. 4

    Analysis: a potter spots an error at the shaping stage, so less work is wasted on that mug [1]

  5. 5

    Evaluation: Yes, because the skilled potters can be trusted to check their own stage [1]

  6. 6

    Evaluation: quality control is less suitable, as inspectors take that responsibility away [1]

Recap

  • Quality matters to all businesses: brand image, loyalty, sales, less rework and fewer returns.
  • Quality control = checking products, usually at the end of production. Only some may be checked.
  • Quality assurance = checking throughout production, with workers taking responsibility for quality.
  • Control: faults found late, remaking is costly. Assurance: errors found early, but all staff need training.
  • Other ways: train or recruit skilled employees, use quality materials, use quality machinery.
  • Name the method, apply it to the business, then explain how it improves quality.
  • For a recommendation, justify one method and say why the other is less suitable.

End-of-chapter exercise

Test yourself on the whole chapter. Work through these before moving on.

  1. Kiran's Bakery sells bread in a small town. Identify two reasons why quality is important to Kiran's Bakery.2 marks
  2. Tolu Toys makes wooden toys. Define 'quality control'.2 marks
  3. Tolu Toys is thinking of changing its quality method. Define 'quality assurance'.2 marks
  4. Alder Shoes makes leather shoes and sells them online. Outline two reasons why quality is important to Alder Shoes.4 marks
  5. Gorse Cars assembles cars. Inspectors test the brakes and lights on each car at the end of the production line. Outline one advantage and one disadvantage to Gorse Cars of quality control.4 marks
  6. Pip Jam fills jars with jam. Staff check the fruit, the cooking and the seal on each jar at their own stage. Outline one advantage and one disadvantage to Pip Jam of quality assurance.4 marks
  7. Zest Juice makes bottled orange juice. Explain two ways Zest Juice could maintain quality production.6 marks
  8. Marna Metals makes steel pipes. The steel is cut, welded and then coated. A manager says, "Quality assurance means we employ more inspectors to check pipes at the end." Explain two advantages to Marna Metals of using quality assurance.6 marks
  9. Tern Catering packs 6000 meal trays a day for airlines. Each tray passes along five packing stations. A supervisor opens one tray in every 50 before the trays are loaded. An airline has complained about trays with missing items. The owner says, "Our quality control means no faulty tray leaves the kitchen." Explain two disadvantages to Tern Catering of its quality control and two advantages to Tern Catering of using quality assurance instead.8 marks
  10. Corrie Solar assembles 2000 solar panels a month. It has 60 production workers. 40 of them are temporary and are replaced every three months. Two inspectors test each finished panel. Even so, 4% of panels are returned with loose wiring. The inspectors cannot see the wiring, which is sealed inside the panel at an early stage. Replacing a returned panel costs Corrie Solar textdollar450. Training one worker to check their own stage would cost textdollar300. Consider quality control and quality assurance as ways for Corrie Solar to achieve quality production. Which method do you recommend? Justify your answer.12 marks

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