Qual Control

8/4/2019 Qual Control

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http://www.bized.co.uk

Copyright 2007 Biz/ed

Stock Control, Quality Control

and Quality Assurance


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Stock Control, Quality Controland Quality Assurance


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Stock Control


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Stock Control

Costs:Storage costs warehousing, etc.

Depreciation costs wear and tear,perishability, shelf-life, etc.

Opportunity cost zero revenueearned on stocks sitting around!

Administration costs monitoringstock levels, ordering and processing,etc.


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Stock Control

Benefits:

Availability of stocks to meet

customer needsBuffer stocks help to cope with

unplanned changes in demand

Smoothes out the volatility of leadtimes


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Stock ControlStock Level

Time

Maximum Stock Level

Minimum Stock Level

Re-order level

The Traditional Stock Control Model

Maximum stock levels achieved after stock delivery.Stock levels decline during production.

When the stock level reaches the re-order level, it triggers anew order. The difference between the time of re-order anddelivery is the lead time.

Lead Time

Re-ordertriggered


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Alternatives Computerisation The functionality and power of

computers allow companies to be able to keep accuratestock control processes in place.

Use of bar codes has facilitated this. Allows constant flow

of information to distribution centres.

Just-In-Time Minimise the amount of stock held in pure systems, the stock arrives as it is needed.

JIT relies on excellent relationships with suppliers

JIT requires excellent communication and infrastructurelinks between suppliers and businesses


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Quality


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Why is Quality a Concern? Gives competitive

advantage

Encourages returnpurchases

Provides customer withinformation and buildsconsumer confidence inthe brand

Reduces costs incurred

in solving post salesproblems

Helps improve efficiency

If quality control breaks down,the cost can be severe.

Source: Photolibrary Group


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Quality Control


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Quality Control

The responsibility of everymember of the workforce for the

quality of products and servicesprovided by the business.

Emphasis on reducing defects, etc.

before it gets to the final stageof production and certainlyto the consumer.


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TQM (Total Quality Management)

Name given to quality control

Features of TQM:

Quality Circles meetings of relevant workers

to discuss issues relating to maintenance andimprovement of quality in the business may alsodouble as a form of empowerment and motivation.

Statistical Process Control statistical datagenerated to inform the evaluation of processes

within the business. Zero defects systems in place to ensure that no

product leaves the business with a defect important in building supplier relationships, image,reputation.


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Quality Assurance


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Quality Assurance

The process whereby quality is atthe forefront of every stage of the

development, design, marketing,manufacturing and selling process.

Quality is influenced by the

internal philosophy of the businessand the external influences -


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External Agency Regulation ISO International Organisation for

Standardisation ensure compatibility, qualityand conformity. ISO 9000 and ISO 14000 setstandards on quality and the environment.

Consumers Association produces themagazine Which and provides surveys toinform consumers about quality and value formoney of competing products.

British Standards Institution (BSI) TheKitemark and the CE mark are both importantstandards of quality. The CE mark confirmsthe product meets EU directives.
http://www.bsi.org.uk/Kitemark/index.xalterhttp://www.bsi.org.uk/Kitemark/index.xalter


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External Agency Regulation

Trade Associations - Draw up codesof practice for its members to adhere to membership of such an association isan indication of quality. e.g. Corgi gassuppliers, British Soft DrinksAssociation, National Federation ofBuilders, etc.

Health and Safety ExecutiveResponsible for health and safetyin the workplace.

Documents

Qual Control