604 Quality Management Effect Of South Island Clothing Ltd On Cost Assessment 1 Answer

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Question :

New Zealand Diploma in Business Level 6 (Leadership and Management Strand)

604: Operations Management – 15 Credits


Business Report:

Learning Outcome 1:Apply quality management techniques and frameworks for the management of non-human resources in order to meet the strategic objectives of the entity.

Learning Outcome 5:Collect relevant and reliable data to utilise in developing an operations management plan to maintain and enhance a New Zealand organisation's performance

Learning Outcome 6:Maintain mutually beneficial strategic business relationships with stakeholders through effective written communication

This assessment is designed to assess learners’ knowledge of quality management. The learner will be given the opportunity to conduct research, evaluate and communicate relevant information through a formal business report. 

Please read the following case scenario as it will be used throughout this assessment. 


You are hired by South Island Clothing Ltdto jointheir Operations Management Department in order to help improve the quality of their products and its operations. The company manufactures andsells high performance adventure clothing for children of5-16 years old in New Zealand. You are required to prepare a formal business report encompassing the following activities. 

First you will define the term quality and its dimensions in relation to the products of South Island Clothing Ltd. You will then discuss the effects of a quality management programme on the cost. As part of your assignment, you will research and investigate different quality management tools and apply them to different aspects of the organisation’s operations. Finally, you will investigate ISO certification and its implications on South Island Clothing Ltd.’soperations in global context. You will compile your analysis, findings and recommendations in a form of formal business report and present it to the Board of Directors of the company. 

In order to complete this assessment, you must present your findings in the form of a Formal Business Report. 

Discussions and analyses must be supported by information from reliable sources and properly referenced using APA 6th edition referencing style.

The following details the format of the reportand the requirements for each section

Cover Page

Assessment title, prepared by, and Prepared for, Date & Word Count.(LO6)

Executive Summary

This is a clear and brief summary of the entire report, which assists the reader to quickly grasp its significance. It should include the purpose of writing the report, a brief summary of the findings & analysis (LO1& LO5), conclusions and recommendations. 

It must contain the main headings and sub-headings for the report and associated page numbers. 


In this section, you are required to provide a brief description of the organisation in the case, a description of their products and services, together withthe description of the main sections of the report.

Analysis &findings (body)

Detailed instructions have been provided in tasks 1 – 4


These are your conclusions based on the findings and analysis in the previous sections. Provide one conclusion for each task of the analysis & findings (4 conclusions). There should be a clear, logical linkage between your conclusion and your findings and analysis. Language used must be clear, professional and concise where possible. You should not introduce any new ideas or information in this section. 


In this section you must provide at least two recommendations in terms of the tools that could improve the product quality of South Island Clothing Ltd, and clear a recommendation as to whetherSouth Island Clothing Ltdeither should use or not use ISO certification to improve its performance.

Additional assessment requirements

  • The report must be between 4000 and 6000 words; quotations are permitted but should represent only a small proportion of the total word count. (A maximum of 8 direct quotes with a word count of 300 are allowed). 
  • The report should reference information from at least five (5) published and relevant sources including books, media sources, academic or journal articles. APA 6th edition referencing style must be used.

Analysis &Findings:

Task 1: Quality Management (QM)


  1. Define and discuss the term “quality”.

Your discussion must include the following  

  • (Definitions must be supported by documented evidence and/or appropriate references, using APA 6th edition referencing style)
  • Specific example of how quality is perceived in the context of operations management.

1.2 Discuss at least 4 quality dimensions and apply them to the products of South Island Clothing Ltd

(Quality dimensions may include but are not limited to Performance, Special features, Conformance, Reliability, Durability, Perceived Quality, Service after sale, any other).

  • Your description must be valid, relevant and supported by documented evidence and/or appropriate references, using APA 6th edition referencing style.
  • The application of the quality dimensions must include specific examples of how those dimensions could be used to assist the organisation in managing the quality of its products. 
Quality Dimensions
Discussion of Dimensions
Application of Dimensions to the products of South Island Clothing Ltd




Task 2: Relationship between quality management and cost

Discuss costs associated to quality management (quality management or lack of quality management) for organisations and evaluate its implications on South Island Clothing Ltd. Your discussion must include but is not limited to prevention costs, appraisal costs, internal failure costs and external failure costs.  

Task 3: Application of quality control tools & techniques for managing the quality of South Island Clothing Ltd.’sproducts.

Given the following operational situations for South Island Clothing Ltd,recommend, justifyand clearly describethe best tool and technique for each of the following situations.  You must use appropriate diagrams and/or illustrations to support your recommendations. 

Note: Quality management tools and techniques may include but are not limited to flowchart, check sheet, cause & effect diagram, Pareto chart, Control chart, histogram, scatter diagram.

  1. The management wants to know how often quality problems such as missing buttons, improperly Stitched, improper cut, improperly packaged products occur. 
  2. The managementwants to analyse whether the diameter of atrouser buttonhole is within the specified range of 0.75 to 1.0 cm over a period of time. 
  3. A batch of shirts produced during the morning shift was found to be substandard. The  managementwants to know the root cause of this.
  4. The management wants to analyse the trend of the daily volume of calls to each branch andtheir different types. 
  5. The CEO wantsto analyse every step in the production process for different production types (trousers and shirts) as well as the inputs and outputs of each process.

Task 4: Continuous improvement in company performance
South Island Clothing Ltd is also planning to expand its operations to other countries around the world such as China, Europe, the Middle East and the USA. The management has instructed you to research and provide recommendations regarding ISO certification. They believe ISO certification will assist them in growing their business beyond their current market in New Zealand. To accomplish this task you are required to conduct the following: 

  1. Clearly and briefly describe the ISO9000 certification, in terms of its aims, and the seven Quality Management Principles that ISO 9000 is based on.
  2. Clearly justify why South Island Clothing Ltdeither should or should not obtain ISO certification. Your justification must include financial, quality management aspects of organisation’s operations in a global context. 
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