14 - stock control and quality management

Question 1

inventory

Answer 1

the supplies and stock held by a business. inventory includes raw materials,finsihed ghoods and work in progress

Question 2

reorder level

Answer 2

a point that stock level reaches when new stock will be ordered

Question 3

buffer stock

Answer 3

the minimum amount of stock a business wnats to hold- can be useful when sales spiek suddenly - allows the bsuienss to adpat

Question 4

lead time

Answer 4

how long it takes from ordering for the stock to arrive

Question 5

the cost of poor stock managment

Answer 5

• opporuntiy cost of tying uo cash ins tock that now cant be used elsewhere
• financial costs -storuing and managing it is costly and time consuming
• too little stock means that orders cannot be filled

Question 6

ways to reduce wastage

Answer 6

• rotate stock so old stuff gets used first
• computerised systems to track inventory
• store goods well to prevemnt them going off
• promotions ect

Question 7

lean production

Answer 7

a process of reducing waste in production - usuially through reducing defects,time wasted and inventory levels. may also edit organsiational structure or processes

Question 8

just in time - JIT

Answer 8

teh process of keeping stock to a minimum to free up cash. relies on effective communication with supliers ect

Question 9

improtance of quality

Answer 9

key to meet customer needs

Question 10

methods of achieving quality

Answer 10

train employees in quality procedures
* invest in tech
* involve all employees in managing quality
* have a clear understanding of customer needs

Question 11

managing quality when it is about the product

Answer 11

• quality checked at the end of production
• focuses on identifying faults
• qualtiy control is a specific role in teh organisation

Question 12

managing quality when it is about the process

Answer 12

• all employees involved in checking the quality
• considered at every step of the process
• focuses on continual improvement of quality

Question 13

difficulties in improving quality

Answer 13

• customer peception of quality changes frequently
• sucsessful businesses may see quality slip if there is no competiiton to force it to remain comeptitive
• measuring quality may be difficult and expensive

Question 14

consoquences of poor quality

Answer 14

• bad brand reputation
• may be legal coasts if people sue the company
• correcting it can be expensive
• expesnive to recall products

Question 15

Total quality managment (TQM)

Answer 15

a system of managment basedon quality being the priority throughut the organisation. quality is everybody’s repsonibility

Question 16

principles of TQM

Answer 16

• quality chains
• qualitiy policies
• controls
• team work
• customer views

Question 17

quality chains (TQM)

Answer 17

the concept that everyone on the line is a customer and teh person next in line shoudl ahev their needs met

Question 18

quality circles

Answer 18

a small group (6-12) who offer to work on a specific issue related to quiality. shoudl represent various areas across the company and must ensure that all aspects of teh supply chainare considered

Question 19

quality and comepitive advanatge

Answer 19

quality adds value to a product
can charge higher prices
howeverm, quality is subjective - therefore busineses must continually aim to improve qualtiy

Question 20

kaizen

Answer 20

involves a wide range of managment techniques, buit the main pricniple is that TQM and quality circles should look for areas in the organsiation that are settling for ‘good enough)