The Importance of Product Quality

The Importance of Product Quality

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The quality of the product that is being made is very important to a
company whatever they are making. The higher the quality if a product
the more the company can charge for that product. If the company makes
a low quality product that is not very good people will not buy it,
also if people can find a similar product at a lower price and higher
quality they will buy that. When a business makes a product they must
decide on the following things:

· what is the lowest level of quality that is acceptable for the
product?

· who is responsible for the quality control

· a method of quality control that will be used that dose not effect
the cost to severally

What is the BSI?

The BSI (British Standards Insatiate) is responsible for setting
standards that products must be made to. They set standards for very
product that is made, this means that products are made to a high
standard. When a product complies with the BSI standards it is given a
kite mark, this tells the consumer that product meets their standards.

Methods of quality control

Methods of quality control

Traditional

TMQ (Total quality management)

Description

In this method of quality control, the quality is checked at the end
of chain of production. In this method it left to one person to check
the product. Also in this method the workers on a piece rate so they
got paid for what they made.

In this method every one is responsible for the quality control.
Instead of checking at the end of production, it is checked as the
products are made at regular intervals. This means that the quality
control is done in such a way that every one is involved. This method
got rid of the piece rate.

Advantages / Disadvantages

In this method of quality control is the reasonability of just one
person. Also in this method as people are paid for what they make,

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this means that they will be more concerned over quantity rather then
quality.

This method is much better as people are paid a fixed arte. This means
that they will more concerned over the quality rather then the
quality.

Has TQM made a difference too quality of products?

TMQ has made a massive difference to the quality of the products. This
method of quality control has improved the overall quality of most
products. This is because now everyone is responsible for the quality
of a product.

Task 2

Why does a business like Sony use new technology?

A business like Sony must always have new technology so that it is
bale to keep its market position ahead of the competition. If they did
not have new technology then they would fall behind. They will not
only use new technology in there products they will also use new
technology in there manufacturing.

One of methods that they employed new technology was by automating
their production. In the 19th and 18th century people did production,
and then a few hundred years later there was automation. This replaced
all of the people with machines. Sony is one of the world leaders in
automation. The products are now also designed on computer; this
allows them to make major changes on the computer.

There are also other advantages of Sony introducing new technology in
to its manufacturing. These are:

Increased quality: A machine will not make a mistake unless it has
been programmed wrong. A human can make a mistake much more easier.
This will increase the overall quality of all of the products as fewer
mistakes are made.

Greater variety: They are bale to adapt the machines are able to be re
programmed much quicker, then the old machines that would have taken a
long time to reset.

Increased output: A computer can work for long time with out a break,
while a person will have take breaks. This will increase the number of
products produced, thus increasing profits.

Increased labour productivity: The new technologies will allow workers
to produce more.

The new technology that is being used also improves working conditions
as they are now more quieter, and worker friendly.

There can be some disadvantages to a company adding in new technology
he main one is that if they get it wrong it can be a very costly
mistake. Normally if a company gets it wrong then they will normally
scrape the machines.

Reported by: Rajeev Kapur, Production manager

Reported to: Board of directors

Date: Wednesday, 02 February 2000

Subject: The advantages of introducing new technology in to
manufacture of our product and just in time production.

1. What is Just in time production

1.1. This method of production is totally different from the
traditional method. Instead of building up store of a product, the
products are built then shipped out straight away. In this method the
raw materials are not stored they are used straight away.

2. Are there any advantages to this method

2.1. Lots of storage space is saved: When the raw materials are
delivered they are used straight away. Then when the products have
been produced they are shipped out straight away. This saves lots of
storage space that also saves money.

2.2. Quality of the components: The raw materials are used as soon as
they arrive. This means that they must be defect free because of this
the company must insist on this or it will slow production. The
manufactory then dose not have to pay for faulty parts that saves
money.

2.3. The workers have more responsibly: The workers are responsible
for making sure that production line dose not stop. This make the
workers feel more valued.

2.4. Improved quality: The production time is lower, so it means that
there is more time to check the quality of a product.

3. What other advantages are there

3.1. As the products are being produced as they are needed and stored
it means that the products will always have the most up-to-date
technology. This means that if there is new technology relapsed then
it can be put into the products straight away.

3.2. This method of production is much faster so it means that will be
able to compete with the large Japanese companies that all employ this
method.

4. Why introduce new technology into the manufacturing of our product

4.1. New technology could totally revolutionize the methods of product
that are used in our company. The new production methods could help to
make our business more efficient, and to help compete with other large
companies.

5. What are the advantages of introducing new technologies

5.1. There are many advantages that come with introducing new
technologies, they are:

5.1.1. Increased quality: A new method of production will use
computers to control the machines. This means that there will only be
mistakes if the machines develop a fault, or are programmed wrong.

5.1.2. Increased output: A machine can work for longer periods of time
then humans. This means that you will be able to make more of your
product for a longer period of time.

5.1.3. More range: A wider range of products can be made on one
machine. This is because a computer-controlled machine can be reset
for a different product much quicker then the old traditional method.
This means that one production line can be used to make more then one
product, which will increase the amount of money that could be brought
in

5.1.4. Better worker productivity: The new technology may allow each
worker to produce more.

5.2. Are there nay advantages to workers

5.2.1. As most of the production will be done by machines that are
more advanced the working condition will improve. The production line
will be quieter, and much more worker friendly. The new technology may
also remove all of the tedious jobs, or jobs in harsh environments

6. Is their any thing that we should considered when buying

6.1. Before we purchase any new technology we must carry out research
to find out what we need, and who can supply it. If this is does wrong
5then it could be a very costly mistake.

7. Overall is new technology and just in time production good

7.1. These new methods are very important for our company to stay
completive with other companies. There may be a high cash input at the
start but this would be repaid over a certain period of time. The
company cannot afford not to implement these new technologies other
wise it will find it hard to compete.

Task4

Why is keeping the correct amount of stock important?

If a company does not use the TQM of production it will use the
traditional method, in this method stock control is important. If
there is not enough stock then the company will not be able to meet
order, and not enough then it will have to waste money on storage, and
will have lots of stock holding up funds. The stock control is very
important for a business to do well.

What four important decisions must be made when dealing with stock
control?

The amount of stock that a company has effects how well the business
doing. There are four factors that you must think about when setting
stock levels:

· What is the lowest level of stock the company will have?

· What is the most stock that the company will have?

· How much stock will be reordered at a time

· What level must the stock fall to before you reorder

Diagram showing stock control:

Maximum level

Reorder level

Minimum level

10 20 Time days

Task 5

How has work-study improved the level of production?

Work-study is a method of measuring how long a method of production
should take. The production manager will use work-study to help make
the production better. The production manger does work-study, this
person is also responsible for:

Keeping costs down: The costs of production must be kept down methods
of doing this are work-study, rearranging the factory lay out, or new
machines.

Timing: The production timetable must be kept to, the manger helps to
make sure of this

Maintaining standards: The production manger must maintain a constant
standard.

Task 6

Channel of distribution

There are different methods of distribution, some apply to large
business, some to small, and some to both.

Channels of distribution that apply to both:

The channel of distribution is how the business gets its products to
the customer. The channel that is chosen must suite the business. A
large company could not sell millions of sweets to a person, so
instead it sells to shops.

There are four methods of distribution, they are:

Consumer

Producer

Channel 1

Channel 2

Channel 3

Producer

Wholesaler

Retailer

Consumer

Consumer

Retailer

Wholesaler

Agent

Producer

Channel 1 of distribution

This is the simplest method of distribution as it involves the he
manufacture selling straight to the consumer. This method of
distribution is not very practical as it is not very often a good
method as a person will not normally live near the factory. A business
may also use this ,method to keep the costs down as it cut as the
middleman. This method of distribution is used a lot when it comes to
selling raw materials to other factories. An example of this is in a
car factory when the company6 that sells the raw materials will sell
it straight to the factory.

Channel 2 of distribution

This is also quite a simple method of distribution, in this method the
manufacture sells to a retailer (shop) who then sells to a consumer.
Very large retailers like john Lewis use this method also. They will
get the products from the manufacture and then sell them on.

Channel 3 of distribution

In this method the channel starts to get more complicated. The
manufacture sells to a whole saler who then sells to a retailer. This
method allows the product to reach smaller shops. This is because the
whole saler is able to break up bulk. Also a small shop will not have
the space to store large amounts of a product. Also products that have
a slow shelf life may also have to sell quickly. This means that a
small shop that has a low stock turn over would only be able to buy in
small amounts.

Channel 4 of distribution

This is the most complicated of all of the channels. In this method
the manufacture will use an agent to sell the product to the whole
saler who then ells to a retailer and to a consumer. The agents in
this method know what the local conditions are like, the agents are
also able to help give the manufacture control over whom they sell to.

What is the wholesaler's role

The whole saler is very important to both the manufacture and the
small business. The whole saler helps the retailer in the following
ways:

The products can be delivered straight to the retailer. This can be
very important for a small shop that does not have the faculties to
transport large amounts of a product. Also this saves the retailer
from buying special vehicles that are needed for refrigeration. Also
that there is delivery this saves the retailer lots of time.

The whole saler may also give the retailer credit, or discounts for
using cash. This can free up lots of cash of the retailer that can be
used for other things.

They break up the bulk of the goods. A small shopkeeper would not be
able to store a few thousand cans of soup so instead they sell in
small amounts. The local shopkeeper can also have a wider variety of
products as they can buy lots in small amounts.

How can the whole saler help the manufacture?

The whole saler can also be invaluable to the manufacture. The whole
saler is important to the manufacture in the following ways:

As the whole saler buys in bulk it saves the manufacture a lot of time
and money. This is because the whole saler only has to deal with one
supplier, while if the manufacture had to deal with a large number of
shops then it would cots lots in administration.

This is what it would look like with out the whole saler:

Retailer

Retailer

Retailer

Retailer

Retailer

Retailer

Retailer

This is what the order and delivery process looks like with the whole
saler:

The links of distribution are now much simpler.

The whole saler will also save the manufacture storage space. As the
products are finished they are sent to the whole saler straight away
this saves a lot of space, as they do not need to spend money on
storage space.

The whole saler mat give advice to the retailer about the product.
This saves a lot on money for the whole saler, as they do not have to
this. The whole saler may also carry out the promotion that saves the
manufacture money.

When selecting which channel to use the following must be considered?

When a manufacture is trying to select the best method of distribution
they must look at the following:

If the product is perishable very quickly the goods must be available
to a wide range of shops show that it can be sold very quickly

How often is the product purchased, if it is brought on a daily basis
the it should also be available in a wide range of shops. A very good
example is newspapers that are sold daily. People do not want to
travel far for a paper

Is the product sold to normal customers or producers?

If the product needs lots of technical back up then it would be sold
direct. This is because the manufacture will be able to provide the
best technical backup.

Where are the people you are selling to if they are over a wide area
then you use retailers, if they were all in one area then you would
sell direct

The cost of product if the product costs lots of money then you will
sell in retail shops where there are well of people.
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