General
- Entrepreneurship S2 TG File Uploaded 2/11/21, 15:26
UNIT 7: QUALITY ASSURANCE AND QUALITY COMPLIANCE IN BUSINESS
Key Unit competence: To be able to maintain effective quality compliance
system in business.
Introductory activity
Quality assurance and Compliance Case Study:
The government of Rwanda through Rwanda Standards Board is mandated
to provide National standards and conformity assessment guidelines
that entrepreneurs/traders ought to follow during production and selling
of their goods and services. These guidelines help entrepreneurs to be
cautious and careful with the quality and measurements of raw materials
used, goods produced and the technology used. If your business conforms
to the required quality management, assurance and compliance standards,
it reduces mistakes and inconsistencies that could make these goods unsafe.
If you manufacture a food product, your quality control processes should
monitor temperature and foreign bodies to decrease the likelihood that
you will make someone sick. Ensuring customer safety saves your businessmoney and averts damage to your reputation.
One of the ways that the business can strengthen its quality is by listening to
its customers and incorporating their feedback in the business processes and
production systems. Product quality issues that customers normally report
should be tracked and managed through a rigorous process of investigation
and resolution. These and more processes help the business to continually
enhance customer satisfaction. It’s also important that businesses aregenuine in their measurements of goods produced and sold.
Questions
Referring to the above case study, answer the following questions below;
a.What does the National Standards and conformity assessment
guidelines expect entrepreneurs to do ?
b. What are likely negative effects the business may face if customers are
not satisfied as a result of wrong measurements of the goods bought ?
c. What strategies would you propose to the entrepreneurs to implement
and ensure the safety of their customers?
d. Design a simple quality management system of the business idea youintend to start in your community.
7.1. Quality assurance and quality compliance
Activity 7.1
Explain the meaning of:
1. Quality assurance,
2. Quality compliance and3. Quality management
7.1.1. Meaning of quality assurance
Quality assurance (QA) is any systematic process of determining whether a
product or service meets specified requirements. It is also referred to as the
maintenance of a desired level of quality in a product or service, especially by
means of attention to every stage of the production process or delivery.
A quality assurance system is meant to increase customer confidence and a
company’s credibility, while also improving work processes and efficiency, and
it enables a company to better compete with others.
Quality assurance is very important because it helps a company create
products and services that meet the needs, expectations and requirements of
customers. It yields high-quality product offerings that build trust and loyalty
with customers. The standards and procedures defined by a quality assurance
program help prevent product defects before they arise. Quality assuranceincludes two principles:
1. “Fit for purpose” (the product should be suitable for the intended
purpose); and
2. “Right first time” (mistakes should be eliminated).
It includes management of the quality of raw materials, assemblies, products
and components, services related to production, and management, productionand inspection processes
7.1.2 Meaning of quality compliance
Quality compliance means acting in accordance with systematic processes of
determining whether a product or service meets specified requirements at
every stage of the production process or delivery. Complying with the quality
requirements helps the business in different ways such as satisfying customers’
needs, increasing the level of sales due to a large number of customers attached
to the product or service, complying with the state’s quality requirementsamong others.
Application Activity 7.1
Using typical examples differentiate quality assurance from qualitycompliance.
7.2. Measurement standards
Activity 7.11. Study the illustrations below and answer the questions thereafter.
a) What do you observe in the above illustrations?
b) What lessons do you learn from the above illustrations?
c) Why should buyers of given products make sure that productsbought conform to the right measurements?
2. Based on your knowledge in Physics(O’level), explain the measurementstandards used in business activities
Measurements are often made using instruments such as measuring tapes,
weighing scale, rulers, clocks, etc. Measurement is a comparison process. It
involves comparison of the quantity to be measured with a chosen standard
or unit. In the past, for example, the length of an object was compared with
familiar lengths: strides, length of a man’s foot, arm and fingers. Ancient people
also used stones or seeds as their standards or units to measure weight. The
position of the sun and the moon were used to tell time and seasons, the
dimensions of the human body. Below are some of measurement standardsthat are used in business activities.
The base quantities according to the International System of Quantities(ISQ) are listed in the following table:
Other quantities are derived from the base quantities and some of them
are listed in the table below.
Examples of measurements in business (measurement standard and
measurement materials)
Application Activity 7.2
For the business you intend to start in your community, analyse differentmeasurement standards you would emphasize, and why?
7.3. Meaning and relationship between quality
management, assurance and quality compliance
Activity 7.3
Describe the relationship between quality management, quality
assurance and quality compliance
It is important for businesses to pay close attention to Quality Assurance (QA),
Quality Compliance (QC) and Quality Management (QM) since they form an
integral part of the business’ success. Customer satisfaction and maintenance
(customer retention) rely heavily on the applicability of the quality assurance,
compliance and management in production and management processes.
Looking at the above illustration, quality assurance and compliance must be
managed and controlled by the given quality control department of the business.
The illustration shows that if businesses have clear processes of managing
quality and abide to laws and guidelines set by regulatory body (RSB), then
there is quality management.
The relation between the three in terms of standards means that quality
management system is comprised of quality assurance and compliance activities
that ensure the establishment of a set of quality policies and objectives which
act as guidelines within an organization or business.
Quality Management system
A Quality Management System (QMS) is a formalized system that documents
processes, procedures, and responsibilities for achieving quality policies and
objectives.
For businesses to be able to promote quality standards, they need to develop
quality management system. This system becomes part and parcel of business
culture and it is monitored by the business’ quality control team. The following
is a quality management system that can be used by business to promote and
ensure the quality of their products or services:
i) Define and document necessary components of quality management
system. This would include key guidelines and elements of what the business
takes as quality. For example what kind of raw materials will have to be used.
ii) Define the quality policy. This includes the business’ mission that is what
customers want and value from the business. This should be given top
priority in the business.
iii) Quality objectives must be communicated to the team and well
understood, ISO requires that quality objectives are derived from quality
policy and measures.
iv) Define the product defect; that is what contributes to poor quality,
whenever such defects are seen they must be recorded and communicated
accordingly.
v) Develop the documents for the system. This could be a manual that
includes the necessary policies, procedures and forms.
vi) Define the quality process; this includes corrective and preventive action
process, management review and communication process. In short this
involves ways of solving given challenges to quality implementation.
vii) Determine the training needs; Entrepreneurs must identify the gaps
within the team so that the workers are trained and supported accordingly
to meet and comply with quality standards.
viii) Use the system. This is the stage when the system is implemented
accordingly.
ix) Measure and monitor performance. Measuring performance happens
after implementation and would vary greatly from organization to
organization depending on size, potential risk, and environmental impact.
x) Take action that improves performance. This is the last step that is
implemented and when solutions to the risks are identified as per the qualityprocess, they communicate them to the employees.
Application Activity 7.3
1. Interrelate quality management, quality assurance and quality
compliance
2. Think about businesses that exist in your community, how have theyfailed to observe quality expectations?
7.4. Levels of accreditation and accreditation bodiesActivity 7.4
1) What do you understand by the term accreditation?
2) Identify levels of accreditation and accreditation bodies.
Accreditation is one of the critical quality infrastructure elements that facilitate
trade. Accreditation of conformity assessment bodies provides the acceptance
of tests results, inspection reports and certificates that accompany products
and services traded across borders.There are three levels for accreditation which include the following;
National standards
The national standards body helps to develop consensus-based standards.
As such it considers the balanced views of all stakeholders (traders, industry,
consumer associations, regulators, academia, research institutions, Non
Government Organizations etc.) the standards developed at the national level
can also be used as inputs to develop international standards.
Examples of national standard bodies in Rwanda: Rwanda Standards Board,
Rwanda Environmental Management Authority, Ministry of Health, Rwanda
Development Board, Rwanda National Police, Ministry of Agriculture andAnimal Resources etc.
Regional standards
These are standards set in each region such as EAAB, East Africa Community
Standards (EACS) to enforce standard of goods and services in each region. They
promote trade and commerce in accordance with the progress and prosperityof a given region.
International standards
The international standards bodies develop standards at the international
level. They are composed of representatives from various national standards
bodies. They help to overcome technical barriers in international trade.
Examples of such bodies include, International Organization for Standards(ISO), International Electro-technical Commission (IEC)
Application Activity 7.4
1) Visit the Rwanda Standards Board website and research about
products made in Rwanda with S mark and ISO.
2) Research from internet to come up with different recognizedaccreditation bodies which ensure quality compliance.
7.5. Role of quality compliance in business
Activity 7.5
Why is it important to comply with quality requirements in business?
Compliance means meeting the regulatory requirements.
1) Quality compliance in business ensures that the product satisfy their
intended use.
2) It also reduces the risk of fines, penalties and closure of businesses. When
a business does not meet some compliance requirements it faces the law.
3) It leads to improved health and safety.
4) It leads to improved health and safety quality improvement.
5) Quality compliance maintains or increase market share for the
businesspeople.
6) There is fair competition among businesses hence increasing customerssatisfaction from the products.
Application Activity
1.Research on the Rwanda Standards Board website about the
requirements needed to get an ‘S’ mark for the products in the
school business club.
2. 2) use the link below and explain the importance of the program“Zamukana Ubuziranenge “http://ryaf.rw/?p=2333
Skills lab 7
For any product you produce in the school business club: Discuss and
write down the steps, measurements and procedures of making that
product to ensure standardization of practices in your business, align
with the acceptable RSB standards and make an action plan to acquire
RSB certification for services or products that your business clubproduce or offer. Then, share with the class.
End of unit 7 Assessment
1. James and Rosset intend to start a business of making Chapati and
mandazi, but they have a challenge ensuring consistency in quality
(maintaining the same test, size and thickness) . With your knowledge
on quality assurance and standardisation;
a) Advise James and Rosset on how they can set quality standards
in their business.
b) What measurement tools could they use to achieve the quality
standards?
2. Explain the importance of accreditation for certification services andtesting laboratories.