IB Business and Management

5.4 Quality Assurance Higher Level

Kaizen Is a system of continuous improvement in

Quality Technology Process CompanyCulture

Productivity Safety Leadership Reducing waste

The aim is to establish small improvements rather than larger scale changes

It comes from the Japanese words 改善The word Kaizen means "continuous improvement".

改 ("kai") "change" or "to correct“

善 ("zen") "good“

Western philosophy may be summarized as

"if it is not broken, don't fix it.“

The Kaizen philosophy is to

"do it better, make it better, improve it even if it isn't broken, because if we don't, we can't compete with those who do."

Kaizen assumptions…..

- Suggestions are not limited

- Making changes anywhere

- Making little changes on a regular basis

- Never-ending efforts for improvement

- Changes involve every employee

Why Kaizen?

• Watch the video ‘THME Toyotas way Kaizen’

Putting Kaizen into Practice

• Long term approach• Investment required in training• Quality Circles• Culture of ‘Openness’ required• Kaizen systems• Incentive schemes

- .

Quality Circles

- Are small group of workers (5-20) from across the business

- Meet regularly to study and discuss issues

- Feedback on their ideas

Advantages

- The company keep abreast of change.

- Can empower and motivate staff

- The focus for improvement is returned to the needs for the customer.

- It eliminates the need for inspection.

- It is easier to do only small continuous improvements than big ones that disrupt the organisation.

Difficulties- The difficulties in getting started

- Can be exhausting!

- Getting people to think in the long term.

- Convincing people that quality is not costly, but actually saves money, time and effort.

- Getting away from 'inspection' culture

- A lot of involvement needed from management

NATIONAL AND INTERNATIONAL QUALITY STANDARDS

What is National and International Quality Standards

• Use National and International Quality Awards to prove that standards have been met.

• Permitted to include the quality award symbols or logos on their products.

How do Quality Awards Help?

• Promote Quality awareness

• Improve organizational performance

• Recognise quality achievements

• Attract High Calibre employees

• Competitive Advantage

• Costs:– Expensive– Disrupt business

activity– Skilled Workers

How to obtain a quality awards

• Autonomous bodies– Government Funded

Example: Subway

• Regular Testing

Examples of National and International Quality Awards

• The CE Marking• The ASQ Award• The BSI “Kitemark”• The Lion Mark

The International Standards Organisation (ISO)

• Founded: 1947, based: Geneva, Switzerland. Has around 160 national quality standards bodies e.g. ASQ, BSI etc.

• Goal• NGO

How do the ISO keep track?

• Proper recordkeeping• Monitored Operations and processes• Checked products for defects• Regular Reviews

• Total Quality Management and Quality Assurance.

Typical Exam Questions

• Examine the effectiveness of international and national quality awards in achieving competitive advantage. (6 marks)

• Examine the role of a regulatory body (one of the examples of National and International Quality Awards e.g the BSI Kitemark) in ensuring quality standards of businesses. (6marks)