It isn’t as directly as expensive as the alternative There is no guarantee on a sampling system that approach (though it may nevertheless cost through defect products won’t slip through the net wastage and inefficiency) is no incentive for employees to take responsibility for quality is no focus on doing things more efficiently or effectively Quality Assurance This is where everyone involved in the production of a product or service takes responsibility for quality. People ensure that their own work is up to the expected standard as they go, before passing it down the line to the next person in the chain. Advantages of Quality Assurance Disadvantages of Quality Assurance It reduces waste of labour and raw materials if done It takes a long time to implement. It involves changing well the culture of an organisation It is more motivating for staff who feel trusted and It can be expensive and time consuming in terms of empowered to take responsibility the training involved. It helps businesses identify issues where quality The costs may not be fully recouped if the business problems occur and work together to fix them doesn’t have significant quality issues Cost Effective Operations To be successful, firms will always strive to find more effective ways of doing things. They will want to find ways of doing more for less money. If they don’t and competitors do they will get left behind their rivals will become far more profitable, or able to compete with much lower prices. Firms mainly spend their money on: Raw materials Employees So these will form the focus of efforts to make operations more cost effective. Raw Materials Businesses will want to ensure they have got the best possible prices from suppliers. Therefore they will negotiate hard in order to get a good deal. However, this may result in having to agree to pay more quickly leading to cash flow problems. Alternatively they may not receive such good delivery service, resulting in delays to production as they wait for materials to arrive.
It isn’t as directly as expensive as the alternative approach (though it may nevertheless cost through wastage and inefficiency) There is no guarantee on a sampling system that defect products won’t slip through the net is no incentive for employees to take responsibility for quality is no focus on doing things more efficiently or effectively Quality Assurance This is where everyone involved in the production of a product or service takes responsibility for quality. People ensure that their own work is up to the expected standard as they go, before passing it down the line to the next person in the chain. Advantages of Quality Assurance It reduces waste of labour and raw materials if done well It is more motivating for staff who feel trusted and empowered to take responsibility It helps businesses identify issues where quality problems occur and work together to fix them Disadvantages of Quality Assurance It takes a long time to implement. It involves changing the culture of an organisation It can be expensive and time consuming in terms of the training involved. The costs may not be fully recouped if the business doesn’t have significant quality issues Cost Effective Operations To be successful, firms will always strive to find more effective ways of doing things. They will want to find ways of doing more for less money. If they don’t and competitors do they will get left behind their rivals will become far more profitable, or able to compete with much lower prices. Firms mainly spend their money on: Raw materials Employees So these will form the focus of efforts to make operations more cost effective. Raw Materials Businesses will want to ensure they have got the best possible prices from suppliers. Therefore they will negotiate hard in order to get a good deal. However, this may result in having to agree to pay more quickly leading to cash flow problems. Alternatively they may not receive such good delivery service, resulting in delays to production as they wait for materials to arrive.