Production and Quality Management
Production and Quality Management
Production is the process of turning raw materials and components into finished goods or services. Quality management ensures the output meets the standards customers expect.
Methods of Production
| Method | Description | Advantages | Disadvantages | Examples |
|---|---|---|---|---|
| Job production | One-off, unique items made to customer specification | High quality, customised, motivating for workers | Slow, expensive, labour-intensive | Wedding cakes, tailored suits, bridges |
| Batch production | Groups of identical items made together, then the next batch | Flexible, moderate costs, some variety | Downtime between batches, storage costs | Bakeries (morning batch of bread), clothing |
| Flow production | Continuous production on an assembly line; items move through stages | Very low unit costs, consistent quality, fast output | High set-up costs, boring for workers, inflexible | Cars, smartphones, bottled drinks |
| Cell production | Workers organised in teams (cells), each responsible for a complete unit or section | Teamwork, motivation, flexibility, quality responsibility | Training costs, relies on teamwork | Some electronics and furniture manufacturers |
Choosing a Production Method
The best method depends on:
- Type of product — unique items suit job production; mass-market goods suit flow production
- Volume of demand — high demand justifies the investment in flow production
- Available capital — flow production requires expensive machinery; job production requires skilled labour
- Customer expectations — some customers want bespoke products; others want cheap, standardised ones
Quality Management
Quality means the product meets or exceeds customer expectations. Poor quality leads to returns, complaints, lost customers and damaged reputation.
Quality Control vs Quality Assurance
| Quality Control (QC) | Quality Assurance (QA) |
|---|---|
| Inspecting products at the end of production to find and remove defective items | Building quality into every stage of production so defects do not occur |
| Reactive — catches problems after they happen | Proactive — prevents problems from happening |
| Can be expensive (waste from rejected products) | Reduces waste and costs in the long run |
| Does not involve all workers | Involves all workers — everyone is responsible for quality |
Total Quality Management (TQM)
- TQM is a philosophy where every employee at every level is responsible for quality
- Quality is built into every process, not just checked at the end
- Focuses on continuous improvement (kaizen) — always looking for ways to do things better
- Requires training, investment and a change in company culture
- Benefits: fewer defects, less waste, higher customer satisfaction, competitive advantage
- Drawbacks: expensive to implement, time-consuming, requires full commitment from all staff
The Impact of Quality on Business
- Good quality leads to: customer satisfaction, repeat business, strong reputation, ability to charge premium prices, fewer returns and complaints
- Poor quality leads to: customer complaints, refunds, legal action, damaged reputation, lost sales
Exam Tips
- Know all four production methods and when each is appropriate
- Understand the difference between QC and QA — a very common question
- For evaluation: Is TQM realistic for small businesses with limited budgets?
- Link quality to customer satisfaction and competitive advantage — this shows AO2 analysis
- Use examples: Rolls-Royce (job production), Toyota (flow production + TQM)