Page 235 - Cambridge IGCSE Business Studies

17: Achieving quality production

■ Quality issues are found when they occur and not at the end of the production
process. This means that resources are not wasted completing a product that will
later fail quality checks.
■ Although a business may inspect goods at the end of the production process, the
Motivator: see Chapter 6,
page 77. time spent by inspectors will be less and the business’s inspection costs will be
reduced.
■ Businesses that have a quality assurance system of quality control find it easier to
obtain industry quality awards such as ISO 9000. These awards can bring marketing
benefits to a business. Customers have greater trust in products with quality
awards and this helps to increase revenue and profits.

CASE STUDY Toyota’s approach to quality

Toyota has achieved a reputation for the production of very
high quality vehicles in all countries around the world. Th is
has been achieved by an approach to quality control and
quality assurance which is unique to Toyota and has been
developed over many years.
Toyota considers quality control as a key part of the
activities to produce products or services economically and
of a standard which exceeds customer needs.
To achieve total quality control Toyota makes each
worker responsible for the quality of his or her work. If a 233
problem is found then the worker can stop the production
process, allowing time to investigate and confi rm the Inspecting for quality at Toyota
quality before continuing.
Careful recruitment and selection along with continuous training has resulted in the company having a

workforce that is multiskilled, flexible and highly motivated; committed to maintaining and improving the company
performance.
The quality of the completed vehicle is greatly dependent upon a reliable supply of high quality parts and materials.

Toyota works closely with its suppliers to make sure that any materials or components they supply satisfy or exceed the
high standard required.
Source: Adapted from www.ehow.com/about_6604332_quality-system-toyota.html

TASK
a What is meant by ‘quality assurance’?

b Identify and explain how any two stakeholders affect the quality of Toyota’s products.
c Identify and explain three reasons why quality is important to Toyota.
d Do you think the additional costs involved in Toyota’s approach to quality control and quality assurance is
worthwhile? Justify your answer.

TEST YOURSELF
1 Explain the term ‘quality control’.
2 Why are quality inputs important to quality products?