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Production and Quality 3

This resource is designed specifically for Units 1 and 2 of the Edexcel BTEC National qualification, 'Introduction to Business' and 'Business and Management'.

Aim:

The aim of this resource is to develop your understanding of quality practices in business production. By the end, you should be able to:

  • Complete your understanding of the origins of quality approaches to production
  • Investigate international, national and market-based standards
  • Understand how standards can benefit economies and consumers

Resources:

Activity:

Deming's Quality Points

A full list of Deming's 14 Points can be found on the Cambridge University Web site.(http://www.ifm.eng.cam.ac.uk/dstools/process/Deming.html)

International, National and Market Standards

There is a range of organisations that exist to promote product and service quality. These bodies are independent of government:

  • Internationally:
    The International Standards Organisation (ISO) is the world's largest developer of standards. Based in Geneva in Switzerland, the ISO coordinates a network of 148 national standards institutes.
  • Nationally:
    The British Standards Institution (BSI) is an independent organisation that sets quality standards for British industry. It is best known for its 'kitemark' logo that can be applied to products that achieve and maintain their quality standard.

Task: Are Quality Standards Sufficient?

Retailers have been keen to charge consumers for what are known as 'extended warranties'. Read the BBC article on Extended warranty rules delayed(http://news.bbc.co.uk/1/hi/business/4024991.stm). Answer the following questions:

  1. Why should retailers feel it necessary to offer warranties? Aren't quality standards sufficient?
  2. Go to the Office of Fair Trading Web site pages on extended warranties(http://www.oft.gov.uk/Consumer/Your+Rights+When+Shopping/Extended+warranties/extended+warranties+-+questions.htm). What are the arguments for and against buying an extended warranty?

Task: Examples of the Benefits of ISO Standards

  1. Go to the ISO's Web site and the section The Big, Wide World of ISO Standards(http://www.iso.ch/iso/en/aboutiso/introduction/index.html#eleven). Find five examples of how ISO Standards boost economies.
  2. Again on the ISO Web site, visit the section Consumer Interests in Standardisation(http://www.iso.ch/iso/en/comms-markets/consumers/iso+theconsumer-05.html). There are 14 work areas of key interest to consumers there. Pick three of these and draw up a list of reasons why these are vital areas for consumers.