Quality management: control, assurance, TQM and kaizen

Quality control and quality assurance

• Quality control: inspecting products, usually at the end of production or at stages, to detect and remove faulty items. Inspectors are responsible, not the workers. It catches defects but finds them after the cost has been incurred, creates waste and may not motivate workers.
• Quality assurance: preventing faults by setting standards at every stage, from design and suppliers to delivery, with workers checking their own work. It reduces waste and builds quality in, but needs training and commitment and takes time to set up.
• Quality circles: small groups of workers who meet regularly to identify and solve quality problems in their area. They use workers' knowledge and can motivate, but take time away from production and only work if managers act on suggestions.

Total Quality Management (TQM)

TQM makes quality the responsibility of everyone in the organisation, from top managers to cleaners. Every department treats the next stage as its internal customer. The aim is zero defects and complete customer satisfaction. It needs a culture change, training, and long-term commitment, so it is costly and slow to introduce; benefits include lower waste, fewer returns, motivated staff and a reputation for quality.

Continuous improvement (kaizen)

Kaizen means small, frequent improvements suggested by workers rather than occasional big changes. Each change is low cost and low risk, and over time the gains add up in productivity, quality and waste reduction. It relies on empowered, motivated staff and managers who listen; progress may be slow, and some problems need a major change instead.

Quality as competitive advantage

Good quality allows a business to:

• Charge premium prices and build brand loyalty.
• Cut costs from waste, reworking, returns and complaints.
• Win repeat business and positive reviews, which matter more as customers compare online.
• Meet standards demanded by large customers and export markets.

Worked example

After introducing quality circles, a factory's defects fall from 180 to 72 per 12,000 units. Each defect costs $15 to rework. Find the defect rates and the saving.

1. Defect rate before = 180 / 12,000 x 100 = 1.5%; after = 72 / 12,000 x 100 = 0.6%
2. Defects avoided = 180 - 72 = 108
3. Saving = 108 x 15 = $1,620 per 12,000 units

Answer: Defect rate falls from 1.5% to 0.6%, saving $1,620

Check yourself

1. A firm produces 8,000 units and 120 are faulty. Calculate the defect rate as a percentage.
   Show answer

   1.5 %. 120 / 8,000 x 100 = 1.5%.

2. Returns fall from 340 to 210 a month. Each return costs $22 to process and replace. Calculate the monthly saving.
   Show answer

   $2860. (340 - 210) x 22 = 130 x 22 = $2,860.

3. The main difference between quality control and quality assurance is that quality assurance
   • relies on inspectors checking finished goods
   • aims to prevent faults happening at every stage
   • is only used for services
   • is a type of budget
   Show answer

   aims to prevent faults happening at every stage. Prevention, not detection.

4. A quality circle is
   • a government quality standard
   • an inspection at the end of the production line
   • a small group of workers who meet to solve quality problems
   • a customer complaints department
   Show answer

   a small group of workers who meet to solve quality problems. Workers' own problem-solving group.

5. Under TQM, who is responsible for quality?
   • Every employee in the organisation
   • Only the quality control inspectors
   • Only senior managers
   • Only suppliers
   Show answer

   Every employee in the organisation. Quality is everyone's job.

6. Kaizen is best described as
   • a single large investment in new technology
   • inspecting every product
   • continuous small improvements suggested by employees
   • outsourcing production
   Show answer

   continuous small improvements suggested by employees. Many small steps.

7. Explain one way that good quality management can give a business a competitive advantage.
   Show answer

   Consistently high quality builds a reputation and brand loyalty, so customers return and the firm can charge a premium price; it also cuts costs from waste and returns.. Reputation and loyalty allow premium prices; lower waste and returns cut costs.

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Sources

• Pearson Edexcel International Advanced Subsidiary/Advanced Level in Business specification (2018)

Last updated 8 November 2026. Spotted a mistake? Tell us.