Understanding how businesses improve quality is essential for A-Level Business students. This section explores different approaches and real-world examples of quality management.
Quality Management Approaches
Businesses place a high priority on quality as it directly impacts customer satisfaction, competitiveness, and profitability. There are various methods companies use to manage and improve quality, depending on the type of product or service they offer, their size, and their internal culture. Two fundamental approaches are Quality Control (QC) and Quality Assurance (QA).
Quality Control (QC)
Definition:
Quality control is a reactive method of quality management that focuses on identifying defects in the finished product. The core aim of QC is to ensure that products reaching customers meet a predefined standard. Inspections are carried out at the end of the production process to detect faults.
Key Features:
QC focuses on final output, not the process.
It involves testing, measuring, and inspecting products.
Usually carried out by a specialised team rather than general staff.
Often involves sampling – not every item may be inspected.
Suitable for mass production industries where consistency in product specification is vital.
Examples of Inspection Activities:
Measuring physical dimensions of a product to check compliance with specifications.
Testing electrical components for faults before packaging.
Checking packaging for labelling or design errors.
Advantages of Quality Control:
Defects are caught before delivery, avoiding customer dissatisfaction.
Can help a business maintain a reputation for reliability, as only quality products are sent to market.
Provides a clear quality benchmark that can be monitored.
Disadvantages of Quality Control:
Costly waste: If defects are found late, the entire product (including labour and materials) may be lost.
Does not prevent recurrence: If the cause of the problem is not addressed, defects may keep occurring.
Responsibility is isolated: Employees on the production line may not take ownership of quality, assuming it's the inspector's job.
Real-World Example – Car Manufacturing:
In the automotive sector, manufacturers like BMW or Volkswagen use QC to inspect finished vehicles. For example, before a car is released to a dealership, it undergoes a final inspection for engine performance, emission standards, and cosmetic issues. However, if a defect is found at this stage, correcting it could be very expensive or result in product recalls, harming reputation and profitability.
Quality Assurance (QA)
Definition:
Quality assurance is a proactive and process-driven approach. It focuses on preventing defects by building quality into each step of the production process. QA ensures that quality is considered at every stage, from sourcing raw materials to final delivery.
Key Features:
Emphasises the entire production process, not just the final product.
Relies on staff involvement, where all employees are accountable for their role in maintaining quality.
Often involves standard operating procedures (SOPs) that must be followed.
Encourages continuous review and refinement of processes.
Examples of QA Practices:
Staff training on consistent service delivery in a restaurant.
Use of checklists in a hospital to ensure procedures are followed.
Software testing protocols built into each stage of development.
Advantages of Quality Assurance:
Reduces waste and costs by preventing mistakes before they occur.
Encourages a culture of quality across departments and roles.
Often results in faster problem resolution due to shared responsibility.
Supports compliance with industry standards (e.g., ISO 9001).
Disadvantages of Quality Assurance:
Time-consuming to implement, especially in large organisations.
Requires ongoing investment in training and system updates.
Depends heavily on employee motivation and consistency.
Real-World Example – Hospitality Industry:
In a hotel chain such as Hilton, QA ensures rooms meet quality standards by following consistent housekeeping procedures. Staff are trained to use the same checklist, regardless of location, helping maintain brand standards and reduce variability in service. Guests receive a consistent experience, which strengthens customer loyalty.
Comparing Quality Control and Quality Assurance
Businesses may use both QC and QA simultaneously, but they serve different purposes. Understanding the key differences helps businesses choose the right strategy or combine both effectively.
Comparison Based on Key Factors:
Timing:
Quality Control: Takes place after production is complete.
Quality Assurance: Occurs during the production process.
Responsibility:
QC is performed by specialist inspectors.
QA involves all staff members and is a shared responsibility.
Focus:
QC targets the final product.
QA focuses on process improvement and standardisation.
Cost Implications:
QC may result in higher costs due to waste, scrap, or rework.
QA requires initial investment in training and procedures but reduces long-term costs.
Effectiveness:
QC helps catch errors but does not prevent them.
QA reduces the likelihood of errors occurring at all.
When to Use Each:
Businesses with short production cycles and lower-cost goods may rely more on QC.
Companies offering services or high-value products benefit from QA to protect brand integrity and avoid costly defects.
Advanced Approaches to Quality Management
Beyond QC and QA, many businesses adopt more comprehensive systems to embed quality in their culture and operations. Two advanced methods are Total Quality Management (TQM) and Kaizen (Continuous Improvement).
Total Quality Management (TQM)
Definition:
TQM is an organisational-wide approach that involves every employee in the continuous effort to improve quality. It is both a philosophy and a management strategy, aiming for long-term success through customer satisfaction.
Core Principles:
Customer focus: Everything is directed towards meeting or exceeding customer expectations.
Continuous improvement: There is no final goal; the business always looks to improve.
Employee involvement: Every staff member, from the CEO to the cleaner, plays a part.
Process-centred: Improvements focus on refining business processes.
Data-driven decision making: Improvements are based on facts, data, and measurable outcomes.
Integrated systems: Departments communicate and collaborate.
Advantages of TQM:
Results in higher consistency and quality across departments.
Builds a strong internal culture focused on improvement.
Helps to reduce long-term costs by eliminating inefficiencies.
Disadvantages of TQM:
Requires substantial investment in training, leadership, and culture change.
May be resisted by staff who prefer traditional roles or responsibilities.
Benefits may take years to fully realise.
Real-World Example – Toyota:
Toyota is famous for integrating TQM into its operations. The company promotes a philosophy where any employee can halt the assembly line if they notice a defect. This accountability leads to fewer defects, higher customer satisfaction, and consistent output. TQM is supported by data tracking, open communication, and structured problem-solving.
Kaizen (Continuous Improvement)
Definition:
Kaizen is a Japanese term meaning “change for the better”. It focuses on small, continuous changes that collectively lead to significant improvements. It is employee-driven, where staff are encouraged to make frequent suggestions for minor adjustments.
Key Features:
Incremental changes: Emphasis on ongoing, small-scale improvements rather than major overhauls.
Employee participation: Staff at all levels are actively involved.
Elimination of waste: Focuses on improving efficiency and reducing time, cost, or material waste.
Standardisation: Once improvements are made, the new method becomes the standard.
Teamwork and feedback: Encourages cross-departmental learning and adaptation.
Advantages of Kaizen:
Promotes a motivated workforce, where employees feel valued.
Improvements are low-cost and build gradually over time.
Helps businesses stay flexible and adaptive to changes.
Disadvantages of Kaizen:
Improvements may be slow to produce visible results.
Requires commitment from leadership to support ideas and track progress.
Risk of short-term disruption while changes are implemented.
Real-World Example – Retail Operations:
In a supermarket chain, shelf restocking may be improved through employee suggestions. For instance, placing high-demand items closer to delivery zones reduces time and effort. While such a change is small, it can lead to significant cumulative savings and improved staff efficiency.
Application in Different Industries
The choice of quality strategy depends on the industry, customer expectations, and operational structure. Different sectors adopt these methods in different ways:
Manufacturing Industry (e.g. Electronics, Cars, Pharmaceuticals)
Quality Control is widely used to inspect physical goods before shipment.
Increasingly, firms integrate QA systems to identify issues earlier in production.
TQM supports long-term product innovation and process reliability.
Kaizen is adopted to fine-tune production lines and reduce downtime.
Example:
In electronics manufacturing, Samsung uses automated inspection systems (QC) but also invests heavily in QA and employee training to reduce defect rates. TQM enables high product reliability, helping to protect its global brand.
Service Industry (e.g. Hotels, Banking, Healthcare)
QA is essential as services are intangible and errors are often irreversible.
Staff training and consistent processes are key to maintaining service quality.
TQM aligns service goals across departments – for example, between front desk and housekeeping.
Kaizen allows front-line staff to suggest improvements, like faster check-in procedures.
Example:
In banking, quality is maintained through process QA (e.g. verification steps in customer transactions), and improvements may come from staff suggestions, such as refining digital onboarding to save customer time.
Digital & Technology Services
QA is integrated through automated testing, code reviews, and agile methodologies.
TQM encourages collaboration across development, testing, and customer service.
Kaizen is embedded in software updates and user interface design improvements.
Example:
A tech company like Spotify may use QA to test app updates, TQM for collaborative development, and Kaizen principles for regularly updating user features based on feedback.
FAQ
While TQM can significantly enhance long-term efficiency and customer satisfaction, some businesses may avoid it due to the high short-term costs and commitment required. It demands extensive staff training, time to change organisational culture, and consistent leadership support. Smaller firms might lack the resources to implement such a wide-reaching approach. Additionally, TQM success depends on employee buy-in, and resistance to change can undermine its effectiveness. The delayed return on investment can also deter profit-focused managers seeking quick results.
Quality assurance helps service businesses deliver consistent, reliable experiences, which reinforces brand trust. In industries like hospitality or retail, QA systems standardise procedures, reducing variability in customer experience. When customers receive predictable and high-quality service, it builds positive word-of-mouth and increases the likelihood of repeat business. Over time, this consistency creates strong emotional connections with the brand, making customers more likely to recommend it. QA also reduces service failures that could otherwise damage reputation and lead to complaints.
Kaizen can be highly effective in large multinational companies, but it requires structured coordination and strong leadership. In larger organisations, employee suggestions are often gathered through formalised feedback systems, team meetings, or improvement committees. Businesses like Toyota and Nestlé use Kaizen successfully by embedding it into their culture and management practices. However, challenges include ensuring communication across global teams and maintaining consistency in implementation. When executed properly, Kaizen empowers employees at all levels and fosters a continuous improvement culture worldwide.
Leadership is essential in driving quality improvement. Senior managers set the tone for a quality-focused culture by communicating expectations, allocating resources, and rewarding good practice. In methods like TQM or QA, leaders must act as role models by following procedures themselves and encouraging participation across departments. They also provide the vision and long-term commitment necessary to overcome resistance and manage change. Without strong leadership, quality initiatives risk being inconsistently applied, under-resourced, or deprioritised in favour of short-term targets.
Technology plays a key role in enhancing QA by automating processes, improving accuracy, and enabling real-time monitoring. For example, digital checklists in hospitality ensure standard operating procedures are followed consistently. In manufacturing, sensors can detect anomalies early in the process, reducing the chance of defects. Cloud-based systems allow for centralised data collection, making it easier to track performance, identify trends, and implement changes quickly. Additionally, training platforms help ensure all staff remain updated on procedures, improving consistency and accountability.
Practice Questions
Explain one difference between quality control and quality assurance in a manufacturing business. (6 marks)
Quality control is a reactive method focused on identifying defects at the end of the production process through inspection, while quality assurance is proactive, involving the prevention of defects by embedding quality into every stage of production. For example, in a car manufacturing business, quality control may involve checking completed vehicles for faults, whereas quality assurance involves standardising assembly line procedures to avoid errors occurring in the first place. Quality control places responsibility on inspectors, while quality assurance makes all employees accountable, helping to reduce waste and increase efficiency over time through continuous process improvement.
Analyse the benefits to a hotel chain of using Kaizen to improve quality. (9 marks)
Kaizen encourages continuous small improvements by involving employees at all levels. For a hotel chain, this could mean staff suggesting better ways to speed up room cleaning or improve check-in processes. These small changes, when implemented consistently, can improve efficiency, reduce costs, and enhance customer satisfaction. Involving staff in decision-making boosts motivation and creates a culture focused on quality. Over time, the hotel can achieve a stronger reputation, leading to higher occupancy rates and repeat bookings. However, it requires managerial commitment and a supportive culture to ensure suggested improvements are actioned and monitored effectively.
