2.4.3 Stock Control Flashcards
What is a stock control diagram?
It shows the flow of stocks (inventory) in and out of the business over time
What is buffer stocks?
It is certain amount of stock held in case of unexpected events or orders so that they can still be met
Advantage of buffer stocks
Reduces risk of a business not meeting customer demands
What are implications of poor stock control?
- Unable to meet an increase in demand
- Increased costs due to excess stocks
- Cash Flow problems as money in stocks leaves the business unable to handle current liabilities
What is Just In Time (JIT) Management?
It is when stock (inventory) is received or produced only when needed
What are implications of Just In Time (JIT) Management?
- Risk of running out of stock
- Difficult to incorporate as not all types of businesses can do it
- High cost of implementing this system due to the change in production
What is Waste Minimization?
It is the reduction of unit costs of production through improving efficiency
What is Lean Production?
It is a business approach which maximizes the efficiency by eliminating waste and therefore having higher product quality
What is quality control?
It is a process that ensures product quality is maintained or improved by the reduction in mistakes (done by checking products after they have been made)
What is quality assurance?
It is the process by which quality is ensured in every stage of the production process, with the aim of ensuring no mistakes are made
What is quality circles?
When a group of people meet on a daily basis to suggest improvements to the production process or solve any current problem
What is total quality management (TQM)?
It is the quality management approach that puts quality at the heart of everything
What is Kaizen?
The continuous improvement by making small changes in order to improve production process
Competitive advantage of Quality Management?
- making better products than their competitors
