Detailed Report on Quality Management and its Impact on Business

This report provides a comprehensive analysis of quality management within a business context. It begins by emphasizing the significance of quality as a determinant of profitability, customer satisfaction, and risk mitigation. The report explores various perspectives on quality, including judgmental, product-based, user-based, value-based, manufacturing-based, and social loss perspectives. Techniques for defining quality, such as quality control, quality management, and quality assurance, are also discussed. The report further examines control charts, FMEA, and regression analysis applied to a case study involving a fast-food chain. It evaluates process capabilities, identifies potential issues, and recommends improvements, such as technology implementation and employee training, to enhance service quality and customer satisfaction. The analysis includes recommendations based on statistical data and practical considerations.

QUALITY MANAGEMENT
Answer to Question No 1
Answer to Question 1 (a)
Out of the three determinant of profitability for a firm quality is the most significant factor that
aids in ascertaining the long run failure and success of a firm. Quality management is vital for
any business as it aids in the maintenance of loyalty and customer satisfaction along with
mitigation of risks and the expenses associated with the replacement of the faulty goods. The
maintenance of quality leads to the development of customer expectations as they are in the
feeling that they would receive quality products. Quality has been critical for satiating the
consumers and maintaining their loyalty so that they can continue to purchase even in the near
future.
Quality influences the reputation of a firm and with the development of various mediums like
social media with the help of which the customers are able to provide opinions and criticisms for
the quality of the product. The development of reputation is dependent on the quality of the
product and thereby the organizations would be able to maintain competitive edge.
The decline in the product quality leads to the rise in the cost for the organizations and therefore
the organizations concentrate on constructing effective quality system with the help of which the
company is able to reduce their costs that are associated to the non-performing assets. The
maintenance of quality is useful in meeting the standards with the help of which the company is
able to accomplish their objectives and goals.
Answer to Question No 1 (b)
A company is able to apply various perspectives on quality. The various perspectives on quality
includes:
Judgmental Perspective: This is even known as Transcendent perspective and this perspective is
the basis with respect to which all the quality perspectives are attained.
Product based perspective: This is a combination of a quantifiable, relevant variable and are the
distinctions in quality has been replicating the variance in the extent of the various product
characteristics.
User based perspective: This perspective is explained as the fitness for planned exploitation.
Individuals have distinctive requirements, wants and desires and therefore requires distinctive
quality value.
Value based perspectives: This kind of perspective place the product quality in the line of the
rival products and try to sell the products at a lower price.

Manufacturing based perspective: This process tries to address in such a way that the anticipated
impact on the engineering and manufacturing practices are understood in accordance to the
specifications.
Social loss perspective: This perspective of quality explains that quality if of a greater loss to the
community by the product after being conveyed and the other losses caused due to the functions
that are in-built.
Answer to Question No 1 (c)
The explanation of quality in a company is a key part and therefore the techniques that are used
to define quality in a firm are as follows:
Quality Control: managing and controlling the process to make sure that the results are
predictable
Quality Management: Directing a firm so that it enhances their performance through
development and assessments.
Quality Assurance: Gaining confidence that a service or a product will be effective and
satisfactory.
Answer to Question No 2

121110987654321
7.5
5.0
2.5
0.0
Sample
Sample Mean
__
X=2.96
UCL=7.79
LCL=-1.88
Xbar Chart of Customer Rating
The Customer rating is within control limit.
121110987654321
7
6
5
4
3
2
1
0
-1
Sample
Sample Mean
__
X=2.646
UCL=6.264
LCL=-0.971
Xbar Chart of Importance score
The performance score is also within control range.

121110987654321
5
4
3
2
1
0
Sample
Sample Range
_
R=1.354
UCL=4.422
LCL=0
R Chart of Customer Rating, ..., Importance score
The individual range chart between customer rating and important score refers that sample 3 out
of control.
Answer to Question 2 (a)
The x-bar control charts indicate that both the control charts are within limits. 5th and 12th
samples are on the mean line of customer rating whereas no sample is on the mean line of
Importance score. Therefore, according to the customer rating, we should recommend initiating
actions.
Answer to Question 2 (b)
The range is minimum in case of importance score. The specification limits are very near to each
other than Customer rating. Therefore, we should use Importance score for marketing Big Blue
Burger.
Answer to Question 2 (c)
The quality manager is meeting with brand manager and the store operations manager for
enhancing quality of Big Blue Burger. It could attract more customers. We should recommend
concentrating more on customer rating. The behavior of employees and various diverging
opinions would increase the recommendation of Store Operation Manager. Performance,
features, conformance, durability and aesthetics are required to be focused.

Answer to Question No 2
28252219161310741
40
30
20
10
0
Sample
Sample Mean
__
X=20.30
UCL=39.93
LCL=0.68
Xbar Chart of Sample, ..., x1

36.431.226.020.815.610.45.20.0
LSL 0.68
Target *
USL 39.93
Sample Mean 25.1083
Sample N 30
StDev(Overall) 0.989434
StDev(Within) 1.03374
Process Data
Pp 6.61
PPL 8.23
PPU 4.99
Ppk 4.99
Cpm *
Cp 6.33
CPL 7.88
CPU 4.78
Cpk 4.78
Potential (Within) Capability
Overall Capability
PPM < LSL 0.00 0.00 0.00
PPM > USL 0.00 0.00 0.00
PPM Total 0.00 0.00 0.00
Observed Expected Overall Expected Within
Performance
LSL USL
Overall
Within
Process Capability Report for x1

28252219161310741
35
30
25
20
15
10
Sample
Sample Mean
__
X=21.87
UCL=34.79
LCL=8.95
Xbar Chart of Sample, ..., x2

32.428.825.221.618.014.410.8
Pp 4.73
PPL 5.88
PPU 3.58
Ppk 3.58
Cpm *
Cp 5.56
CPL 6.91
CPU 4.21
Cpk 4.21
Potential (Within) Capability
Overall Capability
PPM < LSL 0.00 0.00 0.00
PPM > USL 0.00 0.00 0.00
PPM Total 0.00 0.00 0.00
Observed Expected Overall Expected Within
Performance
LSL 8.95
Target *
USL 34.79
Sample Mean 25.0067
Sample N 30
StDev(Overall) 0.909977
StDev(Within) 0.774004
Process Data
LSL USL
Overall
Within
Process Capability Report for x2

28252219161310741
35
30
25
20
15
10
Sample
Sample Mean
__
X=22.69
UCL=32.45
LCL=12.92
Xbar Chart of Sample, ..., x3

30.828.025.222.419.616.814.0
LSL 12.92
Target *
USL 32.45
Sample Mean 25.125
Sample N 30
StDev(Overall) 0.984251
StDev(Within) 0.980743
Process Data
Pp 3.31
PPL 4.13
PPU 2.48
Ppk 2.48
Cpm *
Cp 3.32
CPL 4.15
CPU 2.49
Cpk 2.49
Potential (Within) Capability
Overall Capability
PPM < LSL 0.00 0.00 0.00
PPM > USL 0.00 0.00 0.00
PPM Total 0.00 0.00 0.00
Observed Expected Overall Expected Within
Performance
LSL USL
Overall
Within
Process Capability Report for x3

28252219161310741
32.5
30.0
27.5
25.0
22.5
20.0
17.5
15.0
Sample
Sample Mean
__
X=23.16
UCL=30.99
LCL=15.33
Xbar Chart of Sample, ..., x4

31.228.826.424.021.619.216.8
LSL 15.33
Target *
USL 30.99
Sample Mean 25.0633
Sample N 30
StDev(Overall) 0.953029
StDev(Within) 0.949225
Process Data
Pp 2.74
PPL 3.40
PPU 2.07
Ppk 2.07
Cpm *
Cp 2.75
CPL 3.42
CPU 2.08
Cpk 2.08
Potential (Within) Capability
Overall Capability
PPM < LSL 0.00 0.00 0.00
PPM > USL 0.00 0.00 0.00
PPM Total 0.00 0.00 0.00
Observed Expected Overall Expected Within
Performance
LSL USL
Overall
Within
Process Capability Report for x4