Quality refers to the mark of thebrilliance of goods and its ability for a certain purpose. Quality controldecreases problems and defects in the product. It is a system of ensuringprecision, for its intended purpose. An organisation will need to take intoaccount the consequences that may occur if quality requirements are failing.Quality control allow a business to focus on both the customer and employeesatisfaction. Though this could affect meeting requirements of shareholders.
Advantageswould be that it allows a whole organisation commitment and also improvesproduct and customer satisfaction. It also increases efficiently, and lesswaste happens. Disadvantages would be that the focus on the object or purposemay be lost and pressure to endlessly make decisions.
Benefits of new technology cannot beunaccepted, and businesses cannot ignore change. However, introducing nowsystems may cause problems and could be unsuccessful but can also be successfulif those applying them are passionate and confident.An advantage of IT for business is itmakes it easier and relaxed because it makes communication easier and it alsointroduces a new source of information. Another advantage it saves time becauseit is more convenient, accessing information is fast and easy. Disadvantaged isthat makes life comfortable and relaxed which could lead to you becoming lazy.
Another disadvantage is that future machines and robots can take over people’s placesin the workplace which will cause people to become jobless.Information Technology is used inbusiness for sorting, transmitting, manipulating and retrieving data such asspeech, graphics, movies and reports. Information technology relates to thehardware and software that the businesses use for to control and function anarray of businesses processes.
The use of IT in businesses consist of: makingbusiness calculations such as costing and profit calculations. Categorisinginformation about products such as stock control. Providing advertising andpromotional literature using graphics. Using presentation software such aspower point. Also making business calculations like pricing and profit.Processing information for instance writing letters and using word processingparcels.
Making websites as a promotional and informational tool for abusiness. IT applications are all over in the modern business a huge benefit isthat they can lower costs, one way that time can be saved is in the rapidduplication of information. Information technology allows the globalcommunication of information along with global retrieval information fromdatabases.
There are ranges of technology being used to improve productionmethods and output.The advantages of just- in- time isthat if the stock is perishable then it would not have to store this ensurethat the product will not go bad. They are also cost saving and potentiallyreduce the waste of discarded stock.Advantages would be that cash is nottied up in stock and stock is unlikely to become obsolete and loss of bulkbuying. A disadvantage would be that it is very reliant on supplier which is apotential problem which also makes it difficult to respond to in change indemand.Just -In- time- (order before it isgone) it produces the required order at the required time. All stock is kept toa minimum and requires efficient and effective scheduling and usually managedby computerised systems to ensure supplies are delivered only when required.
Stockholding is reduced by not ordering stock until it is just needed. Kanban wasset up to ensure needed materials were being moved correctly to avoid build-upof unnecessary stock The Kanban system is used as a part of the just-in-timeprocess. This is mostly used in retail and manufacturing sectors. Last-in-first-out (LIFO)- Lateststock is used rather than earlier stocks. It is used if stocks are bulky,difficult to handle and not suitable for perishables and leads to old stockbeing stored for a long time.Stock rotation: First-in-first -out(FIFO)- Stock that is delivered first is to be sold first.
This method is usedusually for products that are perishable such as food or if they are likely tobecome out of date.Many businesses use stock controlmanagement to avoid problems happening form holding a huge amount of stock.Stock management may also include First-in-First-out (FIFO) orLast-in-first-out (LIFO) systems this depends which type of material and stock.The just-in -time method of stock management that purposes to keep minimumstock but does not rely upon providers. The Kanban system can be used to employjust-in- time production stopping a build-up of stocks.
Stock control managementIf stock levels are kept low it couldcause run out of stock, customers can not get the goods, a competitor may takethe opportunity. If the organisation is holding the stock is could cause highstorage costs, spoilage or waste, liquidity. The factors that will influencethe decision for holding particular stock levels are due to storage costs, typeof product, economies of scale, levels of demand, supplier’s reliability,levels of competition and opportunity cost. This can all influence the decisionfor holding particular stock levels needed .It is essential to control the flowof stocks in the business.
This makes sure that firms hold the right amount.Stock control makes sure that all form of stock is exactly accounted for insidethe organisation. Not the same stocks will need different forms of storage.Stock control systems should make sure that materials are always available. Oneof the main issues dealt by MowRite manufactures is that it is fully utilized.She recommended that selling some of the machinery equipment and converting anyavailable space for storage to use.
This increases the capacity utilisation ofthe workers and reduces the cost of storage facility. She also recommends thatemploying full time staff all year round will increase the motivation of theworkers which will result in saving costs of training part-time worker. Themore stock business holds the higher the cost. But business cannot afford torun with no stock. Advantages and disadvantages of stock control. An advantage wouldbe that sales report shows what is selling and what is not selling.
Alsoreceiving instant feedback on current stock levels is very helpful. the systemis mostly automatic and you will only have to use the correct input to use thesystem.A disadvantage would be if you have to much stock it can cost money andyou will have to store it somewhere else. Another disadvantage would be that ifyou do not have enough stock which means that you might run out of stock beforethe next one delivery arrives.
Disadvantage of stock control is that high costsand the money could be used for machinery or invest in the business. Anotherdisadvantage is that staff training is necessary and if equipment breaks downwhich could be bad for the business. Stock controlBatch production is where quantity ofan identical product is made.
Batch is different to flow because you can easilychange the machines around in batch whereas it is harder in flow because it iscontinuous. The machines in batch production can simply be changed to produce adifferent batch. A disadvantage of batch production is due to operation ofmachinery in the production process. This could cause an issue as employeesmight not have anything to do between batches which costs money. Anotherdisadvantage is if one mistake is made it can result in the whole batch beingwasted which costs money. Job production is when one product is made frombeginning to end before starting another one. The product is made to thecustomers own requirements and this results the product to be unique. Productsmade by job production are usually handmade by someone who is very trained andskilled in their profession.
A disadvantage of this product is that rawmaterial cannot always be bought in mass so involving that savings cannot bemade from extent buying. Another disadvantage is that expert tools are requiredwhich can be expensive for the business. The production process can be timestrong which may result in employee demotivation. Job production compared toflow production is that job production is a production of an individual itemwhereas flow is the production of numerous items at once. Job is labourintensive while flow is machinery intensive. Also, job production produces aunique product however flow production produces many standardised identicalitems. This particular type of production opens a different type of market forMowRite a small market where are not many opponents. Workers are highly motivated,and reply is quickly and any products that are defected can easily beidentified not like flow production if something goes wrong can lead to manyissues such as motivation and loss in production in workers.
However, both joband batch production rely more on labour than machinery. (tutor2u, 2017)Other methods of productionAn advantage of flow production isthat large numbers of products can roll off assembly lines at very low costs. Anotheradvantage of flow production is the machinery used in flow production processcan operate for longer without breaks compare to humans where breaks arenecessary to have. A disadvantage is that with many machineries it is verydifficult to change the production process.
Another disadvantage is thatseparate customer requirements cannot be met due to the fact that each productmade is identical and having large demand is needed because the products aremade in large quantities. And if a small error occurs if would mess up the wholeproduction process.MowRite uses flow production methodthis is where identical standardised items are produced on an assembly line. Itinvolves a continuous action of items through the production process.
Thismeans that when the task is complete the next must start immediately. Flowproduction can help the business because a large number of products can rolloff assembly line at very low prices. This is due to production continuing theweekends and firms can benefit from economies of scale this should reduce theprice per unit of production. The can be identified due to the type of product,use of machinery and scale of production.
Mowrite produces standardisedlawnmowers, many customers do not care about the design of the lawnmower buthow it works and can benefit them from what they need it for. Their productionscale is between 8o to 90 thousand units per month this shows that MowRite isnot labour intensive due to the scale of production. The operation managersuggests to sells some of the machinery which means the business is capitalintensive making it difficult to keep the organisation going. Employingfull-time workforce instead of temporary workers she suggests because it cancause an issue in the business because they are not expert and skilled workerslike job production workers.Production methodCapacity utilisation can affectbusinesses massively and should operate 90-98 percent to ensure all theresources and materials are being used entirely. In the month February theproduction level decreased to 60,000 because due to the weather and lawnmowermanufactures might not be making as many sales because of the weather. However,it is shown in the graph that the production level had dropped in Novemberdrastically to 40,000. This product is a seasonal item to purchase because youdo need it all year round.
However, the following months the production levelincreased to maximum 90,000. This is due to weather change as it would bespring and are making more sales. (tutor2u, 2017)Capacity utilisation looks at theamount a firm is making compared with how much it could be making given currentresources. It is about the use that a business makes from it resources. If abusiness is not able to increase output, it is said to be running at fullcapacity. To increase capacity utilisation can increase production level. Italso needs to ensure there is a demand for the excess production.
Business doesnot always function a full capacity, it may not be possible to keep allresources and machinery fully employed all the time. However, most businesseswould hope to be operating at close to full capacity such as 90 percent.Capacity Utilisation