2.4.3 STOCK CONTROL Flashcards
1
Q
Implications of poor stock control : TOO MUCH
A
- Storage costs
- Opportunity costs
- Spoilage costs
- Administration
- Unsold stock
- Shrinkage
2
Q
Implications of poor stock control : TOO LITTLE
A
- Cannon meet unexpected demands
- Delayed deliveries
- Shortages of materials
- Loss of bulk buying discounts
3
Q
Benefits OF JIT
A
- Improves cashflow
- Reduces waste
- Storage space can be used for other things
- Good relationship with suppliers
- Intgration with internal systems/ working methods
- If workers made responsible it can lead to greater motivation
4
Q
Drawbacks OF JIT
A
- Reliability is placed on suppliers
- Increased ordering and administration costs
- No bulk buying discounts
- Difficult to react to unexpected demands
- Harms to reputation if deliverers are late
5
Q
Waste minimisation
A
Store products in correct ways e.g., refrigeration of perishable goods
Accurate sales for forecasting
Stock rotation
Computerised systems
Adjustable pricing strategies and destocking
Recycling goods or finding a good cause to donate to
6
Q
Quality Control Benefits
A
- A trained quality inspector will be checking the product & could provide feedback for improvements or suggestions for future improvements.
- Higher productivity levels as speed of production will be higher.
- Standards are consistent
7
Q
Drawbacks OF Quality Control
A
- Workers may become complacent and see it as someone else’s responsibility
- Paying an individual or group of workers for the responsibility.
8
Q
Quality Assurance Benefits
A
- Staff pride / care when working. (Also helps motivation and morale).
- Don’t need to employ a specific quality controller.
- Less wastage (both time and materials will be saved) as mistakes are spotted earlier
9
Q
Drawbacks Quality Assurance
A
- Training costs will be high.
- Slows productivity, raising average unit cost.
10
Q
Quality circles
A
These are small groups of workers, who work in the same area of production who meet regularly to solve problems that are occurring.
11
Q
Kaizen
A
Japanese management term meaning ‘continuous improvement
12
Q
Benefits of TQM
A
- Focus clearly on relationship with suppliers and customers
- Achieve quality in all aspects of the business
- Critically analyse all processes to remove waste and inefficiencies
- Find improvements and develop measures of performance
- Develop a team approach to problem solving
13
Q
Drawback of TQM
A
- Training and development costs
- Needs commitment from the entire business
- Bureaucracy
- Stress is based on the process not the product
