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Grade 12: Quality of Performance – Summary of Quality Management, TQM, and Business Function Indicators

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This summary outlines the key aspects of Quality of Performance, covering quality assurance, control, and management systems. It explains quality indicators across business functions—such as production, marketing, finance, and HR—and explores the elements of Total Quality Management (TQM), including continuous improvement, financing, monitoring, and customer satisfaction. The document also introduces the PDCA cycle and the role of quality circles, with advantages and disadvantages of effective and poor TQM implementation. Perfect for matric learners revising business studies topics on quality and productivity and for all your exams and the NSC Finals.

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November 5, 2025
Number of pages
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Written in
2025/2026
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QUALITY OF
PERFORMANCE
(7.1)
QUALITY AND QUALITY CONCEPTS
Quality
➔​ Ability of a p/s 2 satisfy the specific needs of C’s.
➔​ Efficiency of services & the ability 2 provide effective outcome w/o too many delays.


QUALITY ASSURANCE QUALITY CONTROL
●​ System that ensures the desired quality ●​ Checks are carried out during & after
is met by inspecting the final product. production process.

●​ Ensure finished prod meets the req ●​ Ensures req stnrds have been met @
stnrds. every stage of process

●​ Includes setting targets, measuring perf ●​ The ‘building on’ of quality as opposed
& taking corrective measures. to ‘checking for’ quality.



QUALITY MANAGEMENT QUALITY PERFORMANCE
●​ Technq’s/tools used 2 design/improve ●​ Total perfo of each dep is measured
the quality of a prod. agnst the specific stnrds

●​ Can be used 4 accountability within ●​ Can be obtained if all dep’s work tog
each of Biz functions. 2wards same quality stnrds.

●​ Aims 2 ensure that quality of p/s is ●​ Quality is measured through physical
consistent. prod/statc output of processes/surveys
of C’s of p/s.

, ADVANTAGES OF A GOOD QUALITY MANAGEMENT SYSTEM
○​ Increased market share/more C’s improve prof’ility.
○​ Improves Biz image as there are fewer defects/returns.
○​ Enhances the ability of Biz 2 achieve vis/mis/goals.
○​ Biz has a competitive adv over its competitors.
○​ Eff C-services are rendered, resulting in increased C satisfaction.


~ QUALITY INDICATORS OF BUSINESS FUNCTIONS ~

GENERAL MANAGEMENT
-​ Develop/Imp/Monitor/Maintain eff strategic plans.
-​ Set direction & estblsh priorities for their Biz.
-​ Eff communi a shared Vis, Miss & Values.
-​ Ensure all dep’s meet their deadlines/targets/achieve goals.

PRODUCT ION
●​ Prod’s meet C’s req’s by being safe, reliable & durable.
●​ Monitor processes & find the root causes of production problems.
●​ Produ-Mngr should provide/ensure high-quali p/s acc 2 specifications.
●​ Produ-Mngr should communi the roles & resp 2 the production workers.

PURCHASING
-​ Buying Raw Materials in bulk @ lower prices.
-​ Ensures req’d quantities are delivered at right time & place.
-​ Impl & maintaining stock ctrl systems 2 ensure security of stock.
-​ Placing orders timeously & ensuring regular follow-ups so that goods are delivered on time.

Marketing
●​ Use aggressive AD campaigns 2 sustain the market share.
●​ ID competitive edge/gaps in the mrkt & conduct reg mrkt research.
●​ Adhere 2 ethical AD practices when promoting p/s.
●​ Acquire a greater mrkt share through good/effective/efficient C-service.

FINANCIAL
-​ UpdateFin records regularly 2 ensure timely/accu tax payments.
-​ Imp credit-granting/debt collecting policies 2 monitor cash flow.
-​ Imp Fin ctrl measures, systems, processes 2 prvnt fraud.
-​ Analyse/Implement strategies 2 increase prof’ility.
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