14 - stock control and quality management Flashcards
inventory
the supplies and stock held by a business. inventory includes raw materials,finsihed ghoods and work in progress
reorder level
a point that stock level reaches when new stock will be ordered
buffer stock
the minimum amount of stock a business wnats to hold- can be useful when sales spiek suddenly - allows the bsuienss to adpat
lead time
how long it takes from ordering for the stock to arrive
the cost of poor stock managment
- 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
ways to reduce wastage
- rotate stock so old stuff gets used first
- computerised systems to track inventory
- store goods well to prevemnt them going off
- promotions ect
lean production
a process of reducing waste in production - usuially through reducing defects,time wasted and inventory levels. may also edit organsiational structure or processes
just in time - JIT
teh process of keeping stock to a minimum to free up cash. relies on effective communication with supliers ect
improtance of quality
key to meet customer needs
methods of achieving quality
train employees in quality procedures
* invest in tech
* involve all employees in managing quality
* have a clear understanding of customer needs
managing quality when it is about the product
- quality checked at the end of production
- focuses on identifying faults
- qualtiy control is a specific role in teh organisation
managing quality when it is about the process
- all employees involved in checking the quality
- considered at every step of the process
- focuses on continual improvement of quality
difficulties in improving quality
- 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
consoquences of poor quality
- bad brand reputation
- may be legal coasts if people sue the company
- correcting it can be expensive
- expesnive to recall products
Total quality managment (TQM)
a system of managment basedon quality being the priority throughut the organisation. quality is everybody’s repsonibility
principles of TQM
- quality chains
- qualitiy policies
- controls
- team work
- customer views
quality chains (TQM)
the concept that everyone on the line is a customer and teh person next in line shoudl ahev their needs met
quality circles
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
quality and comepitive advanatge
quality adds value to a product
can charge higher prices
howeverm, quality is subjective - therefore busineses must continually aim to improve qualtiy
kaizen
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)
