QUALITY MANAGEMENT IN BUSINESS

Explore the importance of quality management in business operations, understand customer satisfaction, continuous improvement, quality controls, and staff consultation. Learn how to apply quality management principles to enhance performance.

QUALITY MANAGEMENT IN BUSINESS
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Table of Contents
Introduction......................................................................................................................................4
Task 1: Be able to understand the different approaches to quality management appropriate to
commercial operations.....................................................................................................................5
1.1: Discuss definitions of quality in terms of business and services provision..............................5
1.2: Illustrate the processes of inspection and assurance.................................................................6
1.3: Discuss a range of approaches to quality management that can be used in PC World............8
1.4: Explain the similarities and differences between the different methods (M1).........................9
Task 2: Be able to understand the benefits of quality management in a business and services
context............................................................................................................................................10
2.1: Discuss what is meant by customer satisfaction.....................................................................10
2.2: Explain the meaning of continuous improvement..................................................................11
2.3: Illustrate the type of added values to be gained......................................................................12
2.4: Describe the types of information made available to customers and the importance given to
effective marketing in PC World...................................................................................................14
Task 3: Be able to understand a range of quality controls and how service to the customer can be
improved........................................................................................................................................15
3.1: Explain how quality management can be measured in PC World.........................................15
3.2: Evaluate the benefit of user and non-user surveys in determining customer needs...............15
3.3: List the methods of consultation employed in one quality scheme to encourage participation
by under-represented groups (M2)................................................................................................16
3.4: Identify the value of complaints procedures and analyse how they may be used to improve
quality............................................................................................................................................17
Task 4: Be able to apply the principles of quality management to improve the performance of pc
world..............................................................................................................................................18
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4.1: Report on the role of self assessment in order to determine PC World’s current ‘state of
health’............................................................................................................................................18
4.2: Evaluate the importance of communication and record keeping...........................................19
4.3: Follow guidelines on the stages of staff consultation necessary for effective implementation
of a quality scheme........................................................................................................................20
4.4: Propose new systems or modifications to existing systems that could improve service
quality............................................................................................................................................21
Conclusion.....................................................................................................................................22
Reference.......................................................................................................................................23
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Introduction
The quality management in business is an important criteria for the maintenance of the reputation
of the organization and to own a large clientele. The satisfaction of the customers is linked
directly to the quality of the services and products that are provided to them by the organization
and hence the quality of the products and services are a major concern. The quality management
and improvement programs can help to increase the revenue generated by the company and
establish the company on firmer grounds. This project aims to study the different methods of
quality management, the interim details of the program that needs to be considered by the
company and ways in which the quality management schemes can be effectively implemented in
the organizations.
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Task 1: Be able to understand the different approaches to quality management appropriate
to commercial operations
1.1: Discuss definitions of quality in terms of business and services provision.
The term ‘quality of a product or service’ refers to the features that are offered by that particular
product or service and the extent to which it has been able to successfully cater to the needs and
expectations of the consumers (Kalpakjianand Schmid, 2014). Quality is an attribute of the
products and services and can only be perceived by the human senses. As per American Society
for Quality, the quality of the product or service is its attributes, which satisfies the customer.
The quality can also be stated as the characteristics and the appeal of the product to the
customers for which they want to pay the price and purchase the product for their utility. The
ISO 9000 is a trademark of standards and the ISO organization gives away the certificates of
recognition to those products, which are immensely beneficial and provides good return on the
investment to the customers (Bon and Mustafa, 2013). The ISO branding acts as a means of
recognition of the products for the customers and help them to identify better quality products
with ease.
In PC World, the quality of the products and services would refer to the quality of the materials
used for the assembled and the ready-made electronic items, the longevity of the products and
the terms of guarantee associated with the products. Since there are a lot of complaints with the
products that the PC World deals in, the organization needs to adopt certain measures like
continuous monitoring and quality assessment of the products and services in order to ensure
their suitability for usage. The demands and expectations of the customers and the extent to
which the products are able to effectively meet the same also needs to be effectually measured
for ensuring the organizational quality and the quality of the products and services.
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1.2: Illustrate the processes of inspection and assurance.
Fig 1: Inspection process (Ordeneset al.,2014)
The process of inspection, to ensure the suitability and the quality of the products, needs to be
carried out in every organization for the sake of maintaining their repute and image in the market
(Ordeneset al.,2014). Supplying lower quality goods to the customers leads to tarnishing the
repute of the company, which is completely undesirable. An effective inspection process
encompasses several steps like:
1. Checking the quality of the electronic products before they are being supplied to the
customers
2. If found unsuitable and inappropriate, the products needs to be separated from the perfect
products and tested for their degree of damage or unsuitability
3. If the damage of the can be repaired then the repairing of the products needs to be carried out
in the shop itself
4. If the damage is considerable then the products needs to be delivered back to the suppliers for
repair
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5. The suppliers needs to either repair or discard the damaged products, depending on the
degree of damage
6. If repaired products are being delivered to PC World, then double checking of the items for
any faults needs to be carried out
7. The officials at PC World, who are responsible for the stock maintenance also needs to check
for the quality of the products when they are being re-supplied
This chain of events repeats with successive shipments of products
Fig 2: Quality assurance
For quality assurance of the products, the reduction in the operational cost of the products is
focused on first, followed by increasing the efficiency of the manufacturing processes,
optimization of the processes and preparing reports of the processes and the products
manufactured. The planning for the quality of the products and the continuous monitoring of the
products for ensuring their quality are also prerequisites to this step. The inspection comes under
the process of quality control.
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1.3: Discuss a range of approaches to quality management that can be used in PC World.
The quality control approach that can be usedeffectively in PC World is the implementation of
the PDCA cycle or better stated as Deming’s Cycle of Quality. The Plan-Do-Check-Act Cycle
encompasses:
Planning for the improvement procedures that needs to carried out in the companylike
Training the employees for imparting effective customer services
Contacting the suppliers and negotiating with them effectively, regarding the supply of flawless
products
Monitoring and testing the stocks regularly, in order to maintain the quality of the products to an
optimum
Formulation of effective policies and strategies to maintain the services to an optimum and for
imparting effective and flawless services to customers
The ‘Do’ segment comprises of carrying out all the requisites as per the propositions of the
administration at PC World
The ‘Check’ segment comprises of continuous monitoring and evaluation of the processes, both
interim and outside the company like the customer services provided to the clients by the
employees as well as the manufacturing processes of the products, as practised by the suppliers
and their packing and despatch procedures, too (Latham, 2014).
The ‘Act’ segment comprises of correcting all the existent flaws and acting towards the
improvement of the qualities of the products and services that are being supplied to the
customers (Certo, 2015). This segment would ensure that all the complaints of the customers are
attended to effectively and all the measures for the correction of the same are implemented in the
processes of the company
Total Quality Management approaches can also be effectively implemented in the processes of
PC World, in order to enhance customer satisfaction and for maintaining good quality of the
products and services
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1.4: Explain the similarities and differences between the different methods (M1)
The similarities between the Total Quality Management approaches and the PDCA cycle of
quality management and assurancecan be enlisted as follows:
 Both the processes are focused on enhancing the quality of the products and services that are
provided to the customers
 Continuous evaluation and monitoring of the processes and the improvement procedures
that are being implemented in the organization, for effectively maintaining the quality of the
products are carried out in both the processes (Amanchukwuet al.,2015)
 The quality and the processes that are followed in the organization are continuously changed
and upgraded in both the procedures
The differences in TQM and PDCA are:
 While TQM involves the utilization of statistical tools for the analysis of the procedures and
maintenance of effective services, the PDCA involves the formulation of strategies and
adherence to the same for the effective maintenance of the quality of the products (Hammer,
2015)
 In PDCA cycle, the formulated strategies and plans are adhered and there are no interim
changes made in the plan until the end of agreed period of observance, for the success of the
implementation plan (for example six months). In TQM, however, the strategies are
continuously monitored and updated as per the requirements of the scenario and the existent
conditions in the company
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Task 2: Be able to understand the benefits of quality management in a business and
services context
2.1: Discuss what is meant by customer satisfaction.
Customer needs and expectations
PC world manufactures several gadgets as well as develops software for its varied range of
customers. The company witness issues associated with the satisfaction of the consumers in
terms of low quality of the products. Customer satisfaction can be enhanced by undertaking
several steps. Foremostly, PC world requires to develop a team of efficient employees who
would conduct a market research. The requirements of the customers must be assessed in order
to incorporate the changes in the products. The understanding of the expectations of the targeted
customers is crucial to improve customer satisfaction.
Understanding the customer
The perspective of the consumers can be understood by reviewing the trend of the preference of
them in the past. The understanding of the values of the consumers will assist PC world to
strategize its promotional activities accordingly.
Responding to customer demand
PC world needs to alter the features of the gadgets in order to align it with the demand of the
consumers. The gadgets which possess the aspects which are valued by the consumers, enhances
customer satisfaction by increasing the utility of the product.
Meeting or exceeding expectations
Customers of PC world will be satisfied when the quality as well as features of the products is in
line with their requirements. Furthermore, customer satisfaction will increase and they will
exhibit loyalty towards the brand when the quality exceed the expectation of the purchasers.
Value for money
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The customers receive ultimate satisfaction when the products are worthy of the money paid by
the consumers. PC world must consider that the quality standards must be achieved in order to
provide a valuable commodity to the consumers.
2.2: Explain the meaning of continuous improvement.
Customer needs to expectations
PC world has witnessed a fall in its reputability contributed by the poor quality of its products.
Therefore, the company has to undergo a continuous process of improvement in order to re-
capture the market share. In the first stage, the company must understand the basic requirement
of the consumers. In the next step, the managers must make the customers form expectations
pertaining to the quality of the services and products .
Quality gaps
The quality gaps refer to the difference among the desired quality of the product by the
consumers and the actual quality possessed by the product. PC world needs to mitigate thi issue
by improving the standard of the commodities.
Internal and external customers
Internal customers of PC world are the ones who are the partners of the company as well as the
suppliers of inputs (Yu, et al., 2013). The company requires maintaining strict standards of te
quality of input in order to improve the quality of the finished goods provided to the external
customers.
Quality into the service sector
The development of the software is the primary service provide d by PC world. Therefore, the
company requires improving its performance by adopting the new technological innovations.
Mature years
PC world can maintain its position in the market and ensure its sustainability in the market by
continuously improving the operational activities of the company.
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2.3: Illustrate the type of added values to be gained.
Lower cost
The company can reduce the cost of the products in order to enhance the value provided to the
customers for their money (Segoro, 2013). For example, the reduced cost of the laptop will
increase the value provided to the customers.
Reduced waste
The consumers dwelling in the contemporary era are concerned about preservation of the
environment. Therefore, PC world can adopt Green Policy to reduce the emission of wastes in
order to enhance the value derived by the purchasers.
Saving time
The manager needs to review the operational activities in order to identify the loopholes.
Therefore, the process can be improved by discarding redundant activities. Adoption of
innovative techniques will also reduce the time. Therefore, the consumers will receive the
services in less time, which in turn would enhance the value received by them.
Reducing need for support activities
The examples of support activities can be the trainers who train the new employees, the team
which delivers the products to the households, as well as the customer service team. Instead of
outsourcing the support services, PC world can enhance the value received by the customers by
using their own staff to provide services to the consumers.
Customer loyalty
Customer loyalty can b enhanced by adding extra value to the commodities. For example, the
discounts or free services given to the customers will assist in increasing customer loyalty
towards the brand.
Presentation
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The approach used by the managers of PC world to increase the added value of the consumers by
consumption of the products and services of the company, must be presented to the consumers.
The company can publish an annual report in order to inform the purchasers about the production
procedure of the commodities manufactured by it. PC world can also exhibit the qualifications of
the experts who engineers as well as designs the products. The suppliers of the raw materials and
their quality checking procedures must be discussed in the report. Furthermore, the CSR polices
as well as the environment friendly practices of the company must also be presented to the
customers (Saeidi, et al., (2015). The company can use promotional channels such as television,
newspapers, magazines, social networks, e-mails, banners, as well as pamphlets as the medium
to inform the consumers about the company. The social media influencers as well as celebrities
can be hired by PC world to promote the value adding procedures of the company (Wirtz, et al.,
2013).
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Low Cost
Reduced
Waste
Save
Time
Reduced
Support
Activity
Custome
r Loyalty

2.4: Describe the types of information made available to customers and the importance
given to effective marketing in PC World.
Opening times
The customers of PC world must be informed about the opening and closing tiing of the retail
stores of the company.
Price lists
The price of each of the products must be uploaded in the website which must be updated
regularly. Brochures and catalogues can also be used for the purpose.
Promotional material
The content of the advertisement can include the marketing mix of PC world in order to inform
the customers about the company and the products.
Raising awareness
The company requires developing brand awareness by informing the customers bout the product
and services (Huang and Sarigöllü, 2014). Creation of fan pages in the social media platforms in
an effective way to reach the young consumers helps in raising the awareness (Strasburger, et al.,
2013).
Targeting all groups
The company produces gadgets which can be used by customers of all the age group , age, and
income earning group. All the professionals can use the software developed by PC world.
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Task 3: Be able to understand a range of quality controls and how service to the customer
can be improved
3.1: Explain how quality management can be measured in PC World.
The best part about the PC world is that everything is recorded. This helps in knowing the
number of sales, keeping track of a credit sheet with a list of all the buyers. A constantly updated
list of the inventories or materials used is kept that helps the manufacturers know when they are
in stock or in need of more materials. Customer complaints are tracked and recorded. A report
for the products with constant bad reviews can be sent to the manufacturing company that shed
light what they are doing wrong. By acknowledging the feedback companies get from their
buyers they can get an idea of whether their products meet the customer demands or fall far
behind. Taking all these into account, the amount of material used along with a number of sales
and the product reviews, companies and perform a benchmark test. In this test a company
compares their quality and sales with other companies who are the stand out or leaders in that
field. Companies often use the ISO 9000 family of standards, which is a set of international
standards used in quality management and quality assurance specifically, designed to help
companies document the quality that they are supposed to maintain (Dahlgaardet al.,2013).
3.2: Evaluate the benefit of user and non-user surveys in determining customer needs.
Getting customer feedback is very important to any company. The response to their products is
essential for the company not only to track its quality but also know the needs of the people
(Iverset al., 2014). The most popular procedure used to get customer feedback is the survey. This
can be either user or non-user depending on the needs of the company. The most used one is the
user based one. Collecting all the data from these surveys shows the company its negatives and
strengths. By conducting these surveys the company gets to know all the positives and
shortcomings of their products directly from the customers who bought and use it. This also
helps them make a satisfaction level of their current customers. Though unusual and odd
sounding but non-user surveys are also very helpful for organizations. These surveys give the
company insight into why people don’t use their products and what the company can do to
improve their relation with their customers. Both of these survey types need a lot
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ofadministrative efforts but it all pays off when the company knows its customer’s needs. The
user surveys give the company a type of performance report and the non-user survey gives them
an insight into how and where they are not meeting customer needs.
3.3: List the methods of consultation employed in one quality scheme to encourage
participation by under-represented groups (M2).
A few methods used:
1.Form surveys: Forms designed to be filled by hand are given out to the under-represented
groups containing questions about the company that gives the company an idea about their
requirements, expectations and problems.
2. Telephone surveys: Calling the under-represented groups and having a verbal conversation
over the phone can help identify their expectations, requirements and problems (Mitra, 2016).
3. Interviews: In this a single person is selected who will represents the entire under-represented
group and a face to face interview is held in which he discusses on behalf of that entire
community what are their problems and expectations.
4. Group interviews: Just like the normal interview listed above but done with a group of
people who represent the community. In this group discussion the representatives and the
company analyze the situation.
5. Mail surveys: In some cases an envelope is sent to the representatives that has a collection of
questions that require short answers.
6. Electronic surveys: This is the same as the one listed above but is sent through electronic
mail.
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3.4: Identify the value of complaints procedures and analyse how they may be used to
improve quality.
Customer complaints help the companies know the shortcomings of their products by people
who have bought and used them. The company manufactures the product and knows what it can
be useful in but the customer has a firsthand experience with the product and can provide the
company with a better insight. The company can know the weakness of a product or service
based upon the reviews or complains of the users. This recorded data can be used in future
planning and quality management. Improvements can be made when the company knows what
and where it’s doing wrong. Customer complaints not only help in improving the quality of
products but services too. When the customer complaints are too high against the staff or a
particular manual based service, the company can improve that by providing better training.
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Task 4: Be able to apply the principles of quality management to improve the performance
of pc world
4.1: Report on the role of self assessment in order to determine PC World’s current ‘state
of health’.
Self-Assessment of PC World would help the managers of the company to identify the existent
flaws in the processes. The self-assessment plays a vital role in the success of the organization
and the views and decisions of the experienced members in the organization are considered for
the implementation of the corrective measures (Johnson, 2014). The administration of the
company cannot be sure of their efficacy, the underlying reasons for the failure of the company
or the continuous complaints of the customers as observed in PC World until, and unless a
proper survey of the methods and the details of the procedures are carried out; the self-
assessment would provide the opportunity for the same.
The self-assessment can be carried out effectively by surveying the employees and the customers
in order to keep a track of the beneficial methods and the enhancement procedures that have been
incorporated into the systems. This procedure can be repeated quarterly for best outcomes.
Utilizing the standards or the benchmarks like ISO 9000 and similar such quality standards
would help in the self-assessment of the company. Acceptance of the products that PC World
deals in, by the ISO standard specifications, would help in raising the repute of the organization
as well as assessing the standard of the services and products that the company provides ot the
customers.
The comparison of the present performance with the past performance of the organizations and
with that of the competitors would also help in effective self-assessment of the company and
keep a track of the achievements
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4.2: Evaluate the importance of communication and record keeping.
The communication is an effective tool for managing the activities of the organization and
helping the employees to be on the right track and perform for the attainment of the
organizational goals, by adhering to the organizational policies (Certo, 2015). The different strata
of the organization, across the different levels, like the management, the leaders and the
employees needs to communicate in order to convey the required messages and the grievances, if
any, for their proper redressal.
The solutions to persistent and existent problems can be effectively handledby mutual discussion
and consultation among the employees and the management; this too is facilitated with effective
communication
Maintaining the records by the PC World is also of utmost importance since the records would
help in the efficient tracking of the flaws and the implemented improvements in the systems and
their resultant outcomes
The records of the functions of the significant competitors of PC World and the ways and
strategies used in those organizations would help the management of PC World to successfully
deal with such problems in future and also help in efficient formulation of business strategies
The records of the industry standards that are followed elsewhere and the standards that are
followed in the organization would help the management to recognize the fields for improvement
and the ways in which the standards can be achieved.
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4.3: Follow guidelines on the stages of staff consultation necessary for effective
implementation of a quality scheme.
The consultation of the staffs for effective implementation of the quality enhancement scheme
that can be followed in the organizations are categorized in five major stages. In PC World too,
these five stages were implemented for the same, by the management.
In the first stage, the proper explanation of the scenario is carried out so that the staffs can
understand the existing situations under which the quality enhancement programmes have been
undertaken by the management
In the second stage, the objectives of the improvement program and the goals that needs to be
effectively met by the employees needs to be stated and explained by the management. The
proper explanation of the objectives and setting the priorities would help the employees
understand the gravity of the situations and act accordingly.
The third stage is to explain the processes that are to be carried out in the enhancement program
to the employees, by the management. The training program, for enhancing the efficiency of the
employees and their adaptability to different situations are also carried out by the management
during this stage. The4 need for the same is impressed upon the employees and they are
convinced for the program by any means possible.
In the fourth stage, the record for the quality enhancement program, the feedback of the
employees about the program and the incorporation of the improved mechanisms into the
existing systems of the organizationare carried out.
The last stage is to analyse the records and the results obtained after the improvement and
training program and to correct any existing effects or flaws in the plan
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4.4: Propose new systems or modifications to existing systems that could improve service
quality.
The modifications in the existing systems of PC World that can effectively improve the quality
of the products and services delivered to the customers are:
Inclusion of service standards like ISO 9000, into the existing services and products that are
delivered to the customers would help in benchmarking the quality and setting the fixed standard
that would be required to be met by the employees every time. Benchmarking the standards also
provides a guideline to the performance of the employees.
Proper documentation of the processes that are being carried out in the company, the details of
the suppliers and the record of the defective shipments that are delivered to the company by each
of the suppliers would help the management at PC World to decide which suppliers to be
eliminated from the supply chain
The feedback and review collection from the employees and the customers from time to time
would help the company to continuously keep a track of the demands of the customers and the
extent to which their services and products have been effective in meeting the same.
Continuous monitoring and evaluation of the systems in the company and the shipments that are
being delivered to the customers also needs to be carried out effectively in the company
Performance indicators like the revenue generated and the popularity among the customers can
also be effectively utilized for framing the annual report and the performance monitor for the
purpose of quality enhancement
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Conclusion
This project provided a detailed insight into the quality management programs and the initiatives
for the improvement of the quality of the products that are delivered to the customers that can be
effectively adopted by organizations. The ways for the adoption of the improvement plans and
the interim steps have been discussed in detail and the importance of different factors like
communication, maintenance of records and the comparison of the performance with that of the
significant competitors in the market have been explored as well.
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