test on monday Flashcards
what is quality
a degree of excellences to which a product satisfies the required needs of cutomers
differences between quality control and quality assurance
inspection of final product to ensure that it meets the required standards
setting targets /measuring perfomance and taking corrective measures
Assurance
production process to ensure required standards have been met at every stage
getting the product right the first time and not making mistakes
give two importance of quality for the business
Good quality enables a good reputation and promotes brand awareness
The business gains goodwill and support from the community
Methods used to indicate quality in products
Trade marks
Samples
Grades
Commercial Standards
Quality indicators
General management
communicate and share vision and values
continuously learn and understand changes in business environment
ensures employees necessary resources to do work
Human resources
A low rate of staff turnover in the business
Market related salaries should be offered
Ensures employees understand the goal and objective of the business
administration
The latest technology should be used
All system and processes should be documented
Complaints should be handled quickly and effectively
Marketing
Market share should be increased by satisfying customers
Values which business operate should be constantly be reviewed
communication with customers should be fostered to regard with products /services
purpose of purchasing
continously looking for the best suppliers
Negotiate the best possible term of payment with suppliers
What are the activities of purchasing function
Look for new suitable , new better suppliers
Ensure that ordered products are delivered on time
Place orders with suppliers and follow up with them
what are the 7 purchasing procedures
Determine the need of the product
*determine the product resources needs of the business
Determine the price of the product
*find the best price by obtaining tenders
Select suitable supplier
Place an order
Pays the supplier
Collect the order
Distribute stock
importance of stock control
Keeps the correct levels of stock on hand
Record the cost price and selling prices of stock
difference between cash and credit payments
cash payment refers to all payment by cash
cash payments can quickly for cash discounts
Credit payments
credit payments refers to all payment done by card
pay more for goods due to interest
advantages and disadvantages of credit purchasing
No discrimination
Interest rates decrease and consumers can pay off debts
Disadvantage
Risk of unsettled debts
accounts should be sent out to debtors
purpose of Nca
granting everyone with credit market accessible to all south africans
Encourages responsible buying
