Quality Management In Business

Some business improvements involve a giant leap forward. An example of this would be the

development of a revolutionary new product such as the bicycle or, more recently, the iPod or modern

wind turbines to create green energy. However, of more importance to most businesses is ongoing small

step improvement. Leyland Trucks continually makes improvements to everything it does based on the

Japanese principle of Kaizen. Leyland Trucks manufactures trucks under the DAF brand in Leyland near

Preston, Lancashire. As well as production in the UK, DAF manufactures in Eindhoven in Netherlands

and Westerlo in Belgium. Leyland and DAF are both part of the North American company, PACCAR


In 2006 DAF’s three manufacturing plants in Europe, including that at Leyland, produced a record

56,700 trucks of between 7.5 and 44 tonnes (the heaviest vehicles on the road). One in every four trucks

sold in the UK is by DAF. New truck registrations in Europe were almost 268,000 in 2006 and DAF

currently has a 15% share of this European market. The current business objective is to increase the

market share to 20%. Without doubt, when a company wants to achieve its objective, it needs to have a

plan to get there this is termed the strategy.

DAF’s strategy for Leyland to achieve this objective has two main elements: (a) continuous

improvement (b) increasing production capacity from 18,000 to 25,000 units. In the pursue of its

achievement of the objectives highlighted above, Leyland has just appointed you the Operations and

Quality Director to oversees the successful implementation and accomplishment of the new strategic

direction. As a first step towards this direction, you have been directed to prepare a detailed report to be

submitted to the management board explaining certain areas of quality management. This report must be

word processed and should be between 3500 and 4000 words and must cover all the areas identified

below if you must achieve a pass for the module. The report must also show significant evidence of

academic theory and critical examination of any point and ideas that may be put forward by you. Define the term “quality” and explain this definition in terms of business

providing manufacturing products, and also those providing services. Your

work must be supported with examples and be justified

Discuss in detail, the process you will put in place to ensure adequate

inspection of product or service quality and assurance to the company’s


Task 3

(Assessment criteria 1.3)

You should identify and discuss in detail the range of approaches you will

adopt or follow in order to ensure a robust management of quality in the


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