2.4 - recource management : lean production + quality

draw a stock control diagram

what is the cost of poor stock management

opportunity cost - holding too much stock

financial cost - storing cost

may run out of stock - cash flow problems

How can a business minimise waste

• pricing stratagies

• rotate stock - old stock sell first

what is lean production

maximise efficiency and eliminate waste

what is lean management

management removing anything is not neccesary

what is JIT - ADV + DIS

just in time - suplly of products and raw materials that is triggered by demand from customers

ADV - no need to hold access inventory - reduce waste - efficient

Dis - relies on effective communication and systems and delivery + reliable suppliers

what is quality control

regular checks and testing products throughout production to identify defects - product + reactive

what is TQM

total quality management - continuous improvement

what is quality assurance

proactive proccess - ensuring products meet specified standards

what is quality circles

small groups of employees who meet regular to identify and solve workplace quality issues

ADV - job satisfaction - voice in decision making - motivated

what is kaizen

continuous and small ongoing changes - imrpvoving effeciency quality and proccesess

what are difficulties in improving quality

• quality is everchanging and subjective

• measuring quality can be difficult and expensive