A clear explanation of how the production process and quality assurance/control system employed by the business help it to add value to its product or service.
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Task 7 E6, A2: A clear explanation of how the production process and quality assurance/control system employed by the business help it to add value to its product or service. The importance of employees at McDonalds is widely recognised. McDonalds realize and acknowledge that the intelligence of their employees is the reason for their business success. They believe intelligent employees are able to add millions/billions of pounds to the value of a corporation hence are the people that use the latest information technologies, and those that interact either face to face or through some other form of communication with customers. McDonalds believe training is an essential strategy to meet their objective of employing the best possible staff and they believe that those who are left out of the knowledge revolution will be left behind in the new knowledge economy. The more individual talent they nurture, the more economic growth they will achieve. McDonalds have a personal objective they apply to their business, which is skill and knowledge development. McDonalds think that any intelligent worker requires a range of skills and aptitudes that enables him or her independently to make decisions on behalf of the organisation. The sorts of decisions the intelligent employee makes require good communication skills, good interpersonal skills, the ability to work with numbers and information technology, and the ability to work effectively in problem-solving situations. That is why McDonalds are so successful and therefore, have developed detailed training and development programmes that seek to create a skilled workforce. They always examine the process of training and development. Businesses change inputs (such as people and materials) into outputs to produce goods and services that meet the needs of their customers. You need to be able to track the production process in order to understand the physical transformations and activities that Lead to the finished product or delivery of a service. From observing the product process you will understand how value is added to a product throughout.
* Automation: The first decade of the twenty-first century is likely to see the most rapid development in production capacity ever witnessed, fuelled by the breakthroughs that took place at the end of the last century. In the USA and Western Europe, there was a considerable investment in ICT software and hardware dating from the economic recovery of 1992. The microchip and its more recent variants lie everywhere in modern production systems, and this has led to a massive fall in production costs. Mechanisation involves the use of machinery. The machine is, however, controlled directly by the operator. Automation, on the other hand, involves the creation of a unit to control the machine. Instructions are fed into the control unit, which then controls operations. Machines are at work in our homes. Examples of machines controlled directly by the operator include food mixers, hair driers and vacuum cleaners. Automatic machines, however, are under automatic control. These machines are able to control themselves once they have been fed instructions. Examples include washing machines, central heating systems, burglar alarms and video recorders * Automation: An automatic machine needs to have some method of controlling itself. It must be able to sense and measure when and when not to take action. An example of the way this operates is the central heating system of a house. Generally, this system will be triggered by one of two mechanisms - the timer or the thermostat. The system can be programmed to switch on and off at set times, or to come on whenever the temperature in the house falls below a certain level. Today, many industrial and commercial processes are automated and, clearly, this facilitates high levels of production at low on unit costs. Organisations that fail to automate their processes will be at substantial cost disadvantages. The word 'control' means the ability to direct or restrain. A controller carries out a function automatically.
Across the world, customers have become more demanding. In part this reflects the rise in disposable incomes fuelled by economic growth. Customers are also responding with a will to the increase in the quantity, sources and variety of supply. Rising affluence and education have bred a race of highly active consumers. Today, therefore, production must be tied in closely with what consumers want. * Adding value through quality: In the context of quality, consumers judge a good or service in terms of what they actually get, not by what the producer hopes to provide. * Quality control is an old idea. It is concerned with detecting and cutting out components or products that fall below set standards. This process takes place after these products have been produced. It may involve considerable waste as defective products are scrapped. Quality control is carried out by quality control inspectors. Inspection and testing are the most common methods of carrying out quality control. * Quality assurance (QA) occurs both during and after the event, and is concerned with trying to stop faults from happening in the first place. Quality assurance is concerned to make sure products are produced to predetermined standards. The aim is to produce with 'zero defects Quality assurance is the responsibility of the workforce, working in cells or teams, rather than an inspector (although inspection will take place). Quality standards should be maintained by following steps set out in a QA system. * (Total quality management TQM) goes beyond quality assurance. ft is concerned with creating a quality culture so that every employee will seek to delight customers. The customer is at the centre of the production process. Companies such as Marks & Spencer and McDonalds have been following this policy for a long time. It involves providing customers with what they want, when they want it and how they want it. It involves moving with changing customer requirements and fashions to design products and services that meet and exceed their requirements. Delighted customers will pass the message on to their friends and so on.
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