Chapter 12-Controlling Flashcards
Controlling
Business stays on target to achieve objectives
Types of Control
Quality
Stock
Credit
Financial
Quality
Refers to a good or service fulfilling its purpose and meeting the expectations of customers
Types of quality control
Inspection
Quality circles
Quality rewards
Total quality management
Inspection
System that uses inspection / clearing as a way of finding any faults
Quality circles
Groups of employees and managers who meet to discuss ways of improving quality of their product
ISO 9000 awards
An international quality award system firm must meet very high standards of quality control and are subject to regular quality checks
Q Mark
An Irish quality mark awarded by EIQA to business that strive to continuously improve their firms
Bord Bia Quality Mark
Awarded to firms that produce and process food in Ireland that meet the abord Bia standards.
Importance of quality control
Customer loyalty (make repeat purchases)
Lower costs (fewer replacements and returns)
Attracting staff (they wanna work for a business with good rep)
Premium price (as product is
perceived as good quality , business can charge a higher price)
Stock control
Making sure a business has the right amount of stock at the right time
Advantages of good stock
Reduced costs (don’t have to pay for storage or security costs)
Theft(reduced the risk of employee theft =stock is closely monitored)
Customer loyalty(business becomes more reliable)
Increased efficiency (done by computers less human errors)
Methods of stock control
Manual stock take
Edi electronic data interchange
Just in time
Credit control
Controlling the amount of credit given to customers and payment period given to customers
Good credit control
Ensures payments are made in full and on time
Credit control involves …
Checks credit worthiness
Setting an appropriate credit limit
Sending invoice immediately of how much is owed (finish later)
Good credit control advantages
Increased sales (they select the most reliable customers)
Saves money (prevents bad debts for, occurring)
Cutomer relationship (offeriejng discounts for early payments)
Reduces bad debts (business gives the most reliable customers credit )
Financial control
Aims to ensure that business is profitable and liquid
