Unit 3. Quality and Total Quality Management.
Learning objectives
1. Explain what quality is
2. Define quality from the customer's perspective
3. Discuss the four major cost categories of quality.
4. Describe the principles and elements of TQM how they contribute to improved quality and productivity.
5. Distinguish among the various tools for improving quality and explain how each should be used
Terms to learn________________________________________________________
Quality, functionality, reliability, breakdown, consistency, durability, value for money, customer loyalty, branding, TQM, benchmarking, quality assurance, zero defect approach, self-checking, faulty product, warranty
Pre-texts discussions
1. What is quality for you?
2. How do you understand the expression «value for money»?
3. How do companies ensure quality of its products?
4. What are the ways of improving quality of products?
Reading______________________________________________________________
Text I. Quality
Quality is about meeting the needs and expectations of customers. Customers want quality that is appropriate to the price that they are prepared to pay and the level of competition in the market.
Key aspects of quality for the customer include:
· good design – looks and style
· good functionality – it does the job well
· reliability – acceptable level of breakdowns or failure
· consistency
· duration – lasts as long as it should
· good after sales and service
· value for money
Value for money is especially important, because in most markets there is room for products of different overall levels of quality, and the customer must be satisfied that the price fairly reflects the quality.
Some products and services are marketed as 'basic', having none of the extra features and benefits of more expensive alternatives. Good examples would be Easyjet and George at Asda clothing ranges. Even though it may be 'low quality' in terms of style or features, these products still give good value for money for their overall level of quality.
For the firm, good design is fundamental, so that the product can be produced efficiently, reliably and at the lowest possible cost.
Quality helps determine a firm's success in a number of ways:
· customer loyalty – they return, make repeat purchases and recommend the product or service to others
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· strong brand reputation for quality
· retailers want to stock the product
· as the product is perceived to be better value for money, it may command a premium price and will become more price inelastic
· fewer returns and replacements lead to reduced costs
· attracting and retaining good staff.
Text II. TQM
Total Quality Management is a specific approach to quality assurance that aims to develop a quality culture throughout the firm. In TQM organizations consist of 'quality chains' in which each person or team treats the receiver of their work as if they were an external customer and adopts a target of “right first time” or zero defects.
Quality benchmarking is a general approach to business improvement based on best practice in the industry. Benchmarking enables a business to identify where it falls short of current best practice and determine what action is needed to either match or exceed best practice. Benchmarking can provide a useful quality improvement target for a business.
Quality assurance is the processes that ensure production quality meets the requirements of customers. The approach aims to achieve quality by organizing every process to get the perfect product and prevent mistakes ever happening. This is also known as a «zero defect» approach. In quality assurance, there is more emphasis on «self-checking», rather than checking by inspectors. Advantages of quality assurance include:
· Costs are reduced because there is less wastage and re-working of faulty products as the product is checked at every step.
· It can help improve worker motivation as workers have more ownership and recognition for their work.
· With all staff responsible for quality, this can help the firm gain marketing advantages arising from its consistent level of quality.
True of false?________________________________________________________
1. Quality often means different things to different people.
2. The customer needs little to the proper use of a product, particularly with new products.
3. Quality is lower priority than product scope, time and cost in many western companies.
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4. “Flawless “means that the product or service meets customer requirements.
5. The ideal product meets and exceeds customer expectations.
6. All customers are ready to pay a higher price for quality goods.
7. The full form of TQM is Total Quantity Management.
8. The objective of TQM is to provide a quality product to customers at a lower price.
9. TQM implies and organization is dedicated to delighting the customer by meeting or exceeding customer expectations.
10. The benefits of a good quality product include better on time production
Multiple Choice Questions______________________________________________
1. Quality may be defined as:
a. reliability of the product with a high price
b. success at the market
c. meeting and exceeding the expectations of the product
d. fashionable product
2. The first step in building a program to ensure quality control is:
a. to define quality characteristics
b. to build quality commitment
c. to form up QA department
d. to develop a comprehensive quality review program
3. “TQM” stands for:
a. Trade Quality Management
b. Travelling Quality Management
c. Total Quality Management
d. Target Quality Management
4. In a system of total quality management, quality is the responsibility of:
a. customers
b. supervisors
c. top managers
d. every worker
5. “Value for money” means:
a. the product has a competitive price at the market
b. the product is worth the money spent on it
c. a low cost product
d. a high cost product
6. High quality products must be priced:
a. low
b. as comparable lower quality goods
c. higher than lower quality goods
d. lower than goods of mass production
7. Warranty is:
a. a receipt confirming the purchase
b. a written promise to repair or replace a product that develops a fault within
a particular period of time
c. expiry date of the product
d. spare part of the product
8. Total Quality Management focuses on:
a. employees only
b. customers only
c. Board of directors
d. employees and customers
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9. Quality problems are:
a. due to management
b. due to methods of production
c. due to the equipment
d. due to raw materials
10. While setting quality objectives, … to be considered.
a. organizational needs
b.customer needs
c. suppliers’ needs
d. workers’ needs
Translating___________________________________________________________
Главная концепция Всеобщего Управления Качеством, согласно которой компания обеспечивает качество, - это контроль всех важных для клиентов товаров. Компания нацеливается на самый высокий уровень производимой продукции, так как бракованные изделия могут стоить дорого репутации фирмы и негативно повлиять на всю её деятельность. Поэтому отдел обеспечения качества (Quality Assurance) включает в себя следующие виды деятельности:
· инспекция и тестирование
· определение предполагаемых дефектов
· выполнение корректирующих действий, чтобы избежать брака
· тренировка персонала, ответственного за качество
· улучшение вида и функций товара
· ремонт и замена частей выпускаемого продукта
· гарантия
· общение с клиентами и анализ жалоб потребителей
Даже если настоящее качество товара идеально, отдел постоянно изучает рынок, похожие продукты конкурентов, работает над инновациями в своей сфере. Желаемая цель – это доверие клиентов, удовлетворение их спроса, возвращение, чтобы купить опять и их рекомендации компании своим друзьям и знакомым. Продукция по своему качеству должна соответствовать требованиям потребителя, которые постоянно изменяются. Следовательно, нельзя остановиться на достигнутом уровне качества. Необходимо непрерывно совершенствовать свою продукцию.
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Defining the terms_____________________________________________________
| 1. flawless | a) a failure to function |
| 2. breakdown | b)how well and long a machine works |
| 3. consistency | c)a name, design and symbol that distinguishes the product |
| 4. reliability | d)act of measuring the quality |
| 5. benchmarking | e)substitute |
| 6. brand | f) state or condition which behave the same way |
| 7. replacement | g) without defects |
| 8. error | h) mistake |
Writing______________________________________________________________
1. Describe the main roles of top management towards the production of qualitative goods. Identify the situations when the need for control and inspection decreases.
2. Quality failures occur due to various causes. What kind of errors can affect quality and how to get rid of them? Offer the solutions to the problems how different management levels can contribute to the improvement of quality in the company.
3. Write a letter of complaint describing the situation when you have bought a faulty product. Kindly ask for money reimbursement.
Chapter IV
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