STOCK CONTROL
Stock can be in the form of raw materials, semi finished products and finished unsold products.
It is necessary for a business to keep enough stock to meet demand while keeping it to a minimum because of the cost and trouble of storing it. Perishable goods, such as food, are particularly difficult to keep for long periods.
One method of Stock Control that has been taken from Japanese industry is called JUST IN TIME (JIT). As the name indicates this involves taking deliveries of stocks at the last minute to keep the amount of stock to be kept to a minimum. The disadvantage is that last minute hold ups can leave firms without the stock to produce. It also makes it more difficult for them to meet last minute increases in demand.
QUALITY CONTROL
It is very important to businesses to have systems to ensure that the goods that they sell are of high quality. If they do not, their reputation with their customers could be ruined. Many businesses use the TOTAL QUALITY MANAGEMENT model (TQM) whereby quality is built into the production process and is everybody’s responsibility. It does not just involve ‘checks’ at the end
The BRITISH STANDARDS INSTITUTION draws up standards for a wide range of products. If they meet those standards they are issued with a ‘Kite Mark’.