Stock and Quality control

Stock control

managing stock levels to ensure sufficient supply while minimising costs

Optimum stock level

ideal amount of stock to meet demand without overstocking or understocking

Raw materials

basic inputs used in production

Work in progress (WIP)

goods partially completed in the production process

Finished goods

completed products ready for sale

Manual stock take

physical counting and recording of stock by staff

EDI

Electronic data interchange - electronic system used to process orders, invoices and payments quickly and efficiently

JIT

system where minimal stock is held and goods are delivered exactly when needed

Buffer stock

minimum extra stock kept to prevent shortages

Reorder level

stock level at which a new order must be placed

Too much stock

excess stock leading to higher costs, waste, and tied-up cash

Too little stock

insufficient stock causing lost sales and production delays

Benefits of stock control

improved efficiency, reduced costs, better customer satisfaction, easier theft detection

Quality control

procedures used to ensure products/services meet set quality standards

Quality assurance (QA)

system ensuring quality standards are met at every stage of production

Quality awards

certifications from independent organisations that improve trust and competitiveness. For

Total quality management (TQM)

company-wide approach focusing on continuous quality improvement

Benefits of quality control

higher customer satisfaction, reduced costs, improved marketing

ISO

international organisation that sets quality standards

EIQA

Irish organisation promoting quality and excellence standard

Effective stock control

Having the right stock in the right place at the right time to meet demand

JIT disadvantage

Risk of disruption to production if deliveries are delayed

EDI benefits

Faster processing, reduced costs, improved accuracy and stock tracking