5 - Stock Control Flashcards
What is meant by quality control
Checking a products quality once it has been made
Examples of quality control
Sampling
Mystery guest
TQM
What is meant by quality assurance
Putting systems in place in advance to guarantee the quality whilst the product is being made
Advantages of quality systems
Quality increases customer loyalty
More competitive
Disadvantages of quality systems
Costly
Slow down production
Excessive
What is meant by lean production
Minimising waste in a manufacturing system
What is JIT
Just in time production
Stock is used as soon as it is delivered
Benefits of JIT
Save costs
Improve cash flow
Less likely damaged/stolen stock
Disadvantages of JIT
- delays in production process
- inability to gain EOS
What is meant by Kanban
Automatically reordering stock when it’s hit the reorder level
Advantages of holding stock
Meet consumer demand
EOS
Disadvantages of holding stock
- stolen/lost
- storage costs
What is the purpose of a stock control chart
To tell a firm how much stock they have
What is the maximum stock level
The maximum amount of stock they can hold
What is the reorder level
The point at which stock is reordered
What is the minimum stock level
The amount of stock that firms aim to never go below
What is buffer stock
All stock below the minimum stock level
What is meant by the average stock
Calculating the average amount of stock held at any one time
What is the formula to work out the average stock
Maximum level + minimum level / 2
What is LIFO
Last In First Out production
What is FIFO
First In First Out production
What is EPOS
Electronic Point Of Sale
What does TQM stand for
Total quality management
What is TQM
System meaning all employees are being responsible for quality
What are some stock control factors
Quality
Cost
Efficiency
Speed
What does capacity utilisation mean
The percentage of your potential capacity/resources that you make use of
What is the formula to work out capacity utilisation
Actual output/potential output x 100
What are the benefits of high capacity utilisation
Efficiency
EOS
What are the disadvantages of high capacity utilisation
Little opportunity for growth
Quality may fall
Diseconomies of scale
How can a firm go over 100% capacity utilisation
Overtime
Outsourcing
What is meant by efficiency
Maximising use of inputs
What is meant by productivity
Output per unit of input
What is meant by wastage rates
The percentage of wasted resources
How to work out wastage rate
Wastage/output x 100
What is meant by benchmarking
Identifying a firm that is the best in the market/industry and using them as a standard to achieve
What is meant by logistics
Planning, implementing and controlling the movement and storage of goods between origin and consumption
Examples of using logistics
Supply chain management
Distribution centres
Warehousing
What is supply chain management/procurement
The process of finding, selecting and establishing t’s and c’s of contracts with suppliers
Factors to consider for logistics
- reliability of suppliers
- Timescales
- Length of supply chain
- Costs
- customer service of suppliers
What is meant by transport design and modelling
Planning a transport operation
What is meant by transport optimisation
Maximising efficiency of a transport system
What is outsourcing
Obtaining goods and services by contract from an outside supplier
Eg construction firm getting workers
What does inventory management mean
Stock management
What is subcontracting
Paying someone for a job
Short term version of outsourcing
What is off-shoring
Taking operations overseas
What is restoring
Bring overseas operations back to domestic country
What are operational objectives
Specific production targets set to achieves goals for a firm
What is a work study
A system of assessing methods of working to help achieve maximum output and efficiency
What is ergonomics
The process of designing/arranging workplaces and a system to fit its workers
What is waste management
Involves activities and actions required to manage waste from inception to final disposal
What does waste management include
Collection
Transport
Treatment
Disposal
