Interactive Lesson: 4.3 & 4.4
Quality Control vs Quality Assurance & Location Decisions
Case Study: Velocity Cars (Manufacturing Crisis)
🚨 CRISIS ALERT: Velocity Cars
Wheels are falling off newly manufactured cars. Customer returns have tripled. The factory manager says: "We inspect every car at the END of production, but 30% still have defects."
Context (AO2 Application)
- •Business: Velocity Cars manufactures 10,000 vehicles/year in the UK.
- •Current Method: Quality Control (QC) - Inspect finished cars, scrap defective ones.
- •Problem: High waste costs (£3,000 per scrapped car).
- •Alternative: Quality Assurance (QA) - Check at EVERY stage of production.
📍 Location Dilemma
The Board is considering moving the factory from the UK (high wages: £15/hour) to Country Y (low wages: £3/hour). BUT: Country Y has frequent power cuts and is 2,000km from customers.
Learning Objectives (AO1 Knowledge)
Quality Control (QC)
Inspecting the finished product. Defective items are thrown away. High waste costs.
Quality Assurance (QA)
Checking quality at every stage of production. Prevents defects. Aims for zero defects.
🎯 Your Mission
- Run the QC vs QA simulator to see the cost difference.
- Use the Location Map to understand manufacturing vs service location factors.
- Weigh the pros and cons of moving to Country Y.
Key Takeaways
- •Quality Assurance prevents defects at every stage. Quality Control inspects finished products and scraps defective ones.
- •Manufacturing businesses locate near raw materials or energy. Service businesses locate near customers.
- •International location offers lower costs but introduces risks like tariffs, language barriers, and political instability.
- •Always use the BLT Chain for Analysis and LOSER Method for Evaluation to maximize marks.
Sign In to Keep Going
You've reached the end of the free preview. Sign in — and upgrade to Plus or Pro — to keep going with Business.
Full Access
Unlock all 44 lessons