5 - Stock Control

Question 1

What is meant by quality control

Answer 1

Checking a products quality once it has been made

Question 2

Examples of quality control

Answer 2

Sampling
Mystery guest
TQM

Question 3

What is meant by quality assurance

Answer 3

Putting systems in place in advance to guarantee the quality whilst the product is being made

Question 4

Advantages of quality systems

Answer 4

Quality increases customer loyalty

More competitive

Question 5

Disadvantages of quality systems

Answer 5

Costly
Slow down production
Excessive

Question 6

What is meant by lean production

Answer 6

Minimising waste in a manufacturing system

Question 7

What is JIT

Answer 7

Just in time production

Stock is used as soon as it is delivered

Question 8

Benefits of JIT

Answer 8

Save costs
Improve cash flow
Less likely damaged/stolen stock

Question 9

Disadvantages of JIT

Answer 9

• delays in production process

- inability to gain EOS

Question 10

What is meant by Kanban

Answer 10

Automatically reordering stock when it’s hit the reorder level

Question 11

Advantages of holding stock

Answer 11

Meet consumer demand

EOS

Question 12

Disadvantages of holding stock

Answer 12

• stolen/lost

- storage costs

Question 13

What is the purpose of a stock control chart

Answer 13

To tell a firm how much stock they have

Question 14

What is the maximum stock level

Answer 14

The maximum amount of stock they can hold

Question 15

What is the reorder level

Answer 15

The point at which stock is reordered

Question 16

What is the minimum stock level

Answer 16

The amount of stock that firms aim to never go below

Question 17

What is buffer stock

Answer 17

All stock below the minimum stock level

Question 18

What is meant by the average stock

Answer 18

Calculating the average amount of stock held at any one time

Question 19

What is the formula to work out the average stock

Answer 19

Maximum level + minimum level / 2

Question 20

What is LIFO

Answer 20

Last In First Out production

Question 21

What is FIFO

Answer 21

First In First Out production

Question 22

What is EPOS

Answer 22

Electronic Point Of Sale

Question 23

What does TQM stand for

Answer 23

Total quality management

Question 24

What is TQM

Answer 24

System meaning all employees are being responsible for quality

Question 25

What are some stock control factors

Answer 25

Quality Cost Efficiency Speed

Question 26

What does capacity utilisation mean

Answer 26

The percentage of your potential capacity/resources that you make use of

Question 27

What is the formula to work out capacity utilisation

Answer 27

Actual output/potential output x 100

Question 28

What are the benefits of high capacity utilisation

Answer 28

Efficiency | EOS

Question 29

What are the disadvantages of high capacity utilisation

Answer 29

Little opportunity for growth Quality may fall Diseconomies of scale

Question 30

How can a firm go over 100% capacity utilisation

Answer 30

Overtime | Outsourcing

Question 31

What is meant by efficiency

Answer 31

Maximising use of inputs

Question 32

What is meant by productivity

Answer 32

Output per unit of input

Question 33

What is meant by wastage rates

Answer 33

The percentage of wasted resources

Question 34

How to work out wastage rate

Answer 34

Wastage/output x 100

Question 35

What is meant by benchmarking

Answer 35

Identifying a firm that is the best in the market/industry and using them as a standard to achieve

Question 36

What is meant by logistics

Answer 36

Planning, implementing and controlling the movement and storage of goods between origin and consumption

Question 37

Examples of using logistics

Answer 37

Supply chain management Distribution centres Warehousing

Question 38

What is supply chain management/procurement

Answer 38

The process of finding, selecting and establishing t’s and c’s of contracts with suppliers

Question 39

Factors to consider for logistics

Answer 39

- reliability of suppliers - Timescales - Length of supply chain - Costs - customer service of suppliers

Question 40

What is meant by transport design and modelling

Answer 40

Planning a transport operation

Question 41

What is meant by transport optimisation

Answer 41

Maximising efficiency of a transport system

Question 42

What is outsourcing

Answer 42

Obtaining goods and services by contract from an outside supplier Eg construction firm getting workers

Question 43

What does inventory management mean

Answer 43

Stock management

Question 44

What is subcontracting

Answer 44

Paying someone for a job | Short term version of outsourcing

Question 45

What is off-shoring

Answer 45

Taking operations overseas

Question 46

What is restoring

Answer 46

Bring overseas operations back to domestic country

Question 47

What are operational objectives

Answer 47

Specific production targets set to achieves goals for a firm

Question 48

What is a work study

Answer 48

A system of assessing methods of working to help achieve maximum output and efficiency

Question 49

What is ergonomics

Answer 49

The process of designing/arranging workplaces and a system to fit its workers

Question 50

What is waste management

Answer 50

Involves activities and actions required to manage waste from inception to final disposal

Question 51

What does waste management include

Answer 51

Collection Transport Treatment Disposal