Quality Assurance and Quality Control

is all about Standards, you set them.
For example with a CD/Games Rack you could set the standard for having the slots that the CD/games fit into, to a particular size, (lets say 1cm) and you then set a margin of error which is acceptable (this is called a tolerance) lets say plus or minus one mm. This means if the slot is 9mm it is OK if it is 11mm it is OK but if it is outside either of the two measurements, it is not OK. To check that your standards are being met you then have quality control.
is all about meeting the standards you have set.
All this means is that every now and then a component is taken off the production line and checked. If it is within the limits (tolerances) set then production continues, if it is outside the set tolerances then production stops. The reason for the mistake is found and corrected and production starts again. One example for not being right could be a tool that is being used has become worn down and is cutting things too short, this would be replaced.
When and how a product is checked depends on the product. In a shirt factory for example the check might be visual and take place every 50 shirts. This ensures that if a mistake is found, the maximum number of shirts that could be wasted is 50. If a product needs to be very safe and accurate (say aeroplane parts) they would be checked using accurately set instruments and every part might be checked (peoples lives depend on them being right).
What really matters is that if your product is rubbish you wont sell it, and if you do sell it folks will be bringing it back for a refund, so it pays in the long run to get it right first time.
What happens when the standards are right? Do you win a cuddly toy? No you are allowed to use certain types of mark which is a 'BADGE' which you can stick or sew to your product which says you met particular standards. Look here to get a bit of a clue.