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Production and Quality Control

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Production and Quality Control Production - The transformation of resources into goods or services. The Halifax's production The Halifax is an example of production in tertiary industry. Examples of products the Halifax provides are: * Keep money safe. * Pleasant atmosphere. * Calculate interest. * ATM's. * Lend money. * Customer services. * Advice/information. * Research. * Insurance. Adding Value in the Production Process Adding value - making a product more desirable to a final customer (so the customer is willing to pay a higher price) e.g. dog biscuits Wheat Grind into flower Mix with hot water etc Dough into a sheeter machine etc. Each level of the production process adds value. The company is basically doing something for the customer to save them the job of doing it. The customer is willing to pay more money for the product because the company has done the work for them. For example it will cost more to buy the product once it has been 'mixed with hot water' than when it has been ground into flour as value has been added. There are three stages in the developing of quality: Quality Control - Detecting and cutting out components or products that fall below set standards. ...read more.


This is because this function is responsible for making sure raw materials are being processed to create products for the customers. Quality circles would alter this if these products aren't made to the best standard and would create more work for the production function in having them made again. More employees may have to be hired resulting in better work done at a quicker pace. This would affect the meeting of objectives such as 'market leadership in mortgages and savings' and 'being the fastest growing banking and consumer credit brand in the UK' because work is being completed more quickly and new methods of doing work are being thought up from those in the quality circles. The research and development function will be the most affected function by the introduction of quality circles. This is because as well as quality circles being able to improve the running of this function, this function can also help the quality circles. The research and development function affect the quality circles as they are the ones who have to find all the information about the products and who to aim them at. This also means that those in the quality circles can change the products to help meet the requirements of the customers. ...read more.


people outside the groups helping to 'build the UK's most successful bancassurance operation' By getting new ideas from their colleagues, the quality circle groups can help the Halifax in becoming the 'fastest growing banking and consumer credit brand in the UK' With the quality circles editing processes and products, the Halifax can sell more products and 'deliver quality earnings growth based on sound credit quality' and therefore 'capitalise on the growth opportunities arising from the enlarged Halifax balance sheet' The main aim of the quality circles is to 'seek creative solutions that deliver value to our customers' Without quality circles these solutions may never be thought of and would hinder the Halifax to 'achieve a major market presence in England and Wales' The quality circles will aim to find solutions towards satisfying the customers as the Halifax has a customer driven culture. Therefore this will help towards becoming 'market leader in mortgages and savings' By producing better products and service this will help to 'deliver quality earnings growth based on sound credit quality' and to 'capitalise on the growth opportunities arising from the enlarged HBOS balance sheet' The quality circles work to 'seek creative solutions that deliver value to our company' and these new methods may 'break the mould in business banking' and could be used to 'build the UK's most successful bancassurance operation' ...read more.

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