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Quality refers to the mark of the
brilliance of goods and its ability for a certain purpose. Quality control
decreases problems and defects in the product. It is a system of ensuring
precision, for its intended purpose. An organisation will need to take into
account the consequences that may occur if quality requirements are failing.
Quality control allow a business to focus on both the customer and employee
satisfaction. Though this could affect meeting requirements of shareholders. Advantages
would be that it allows a whole organisation commitment and also improves
product and customer satisfaction. It also increases efficiently, and less
waste happens. Disadvantages would be that the focus on the object or purpose
may be lost and pressure to endlessly make decisions.

Benefits of new technology cannot be
unaccepted, and businesses cannot ignore change. However, introducing now
systems may cause problems and could be unsuccessful but can also be successful
if those applying them are passionate and confident.

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An advantage of IT for business is it
makes it easier and relaxed because it makes communication easier and it also
introduces a new source of information. Another advantage it saves time because
it is more convenient, accessing information is fast and easy. Disadvantaged is
that 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 places
in the workplace which will cause people to become jobless.

Information Technology is used in
business for sorting, transmitting, manipulating and retrieving data such as
speech, graphics, movies and reports. Information technology relates to the
hardware and software that the businesses use for to control and function an
array of businesses processes. The use of IT in businesses consist of: making
business calculations such as costing and profit calculations. Categorising
information about products such as stock control. Providing advertising and
promotional literature using graphics. Using presentation software such as
power point. Also making business calculations like pricing and profit.
Processing information for instance writing letters and using word processing
parcels. Making websites as a promotional and informational tool for a
business. IT applications are all over in the modern business a huge benefit is
that they can lower costs, one way that time can be saved is in the rapid
duplication of information. Information technology allows the global
communication of information along with global retrieval information from
databases. There are ranges of technology being used to improve production
methods and output.

The advantages of just- in- time is
that if the stock is perishable then it would not have to store this ensure
that the product will not go bad. They are also cost saving and potentially
reduce the waste of discarded stock.

Advantages would be that cash is not
tied up in stock and stock is unlikely to become obsolete and loss of bulk
buying. A disadvantage would be that it is very reliant on supplier which is a
potential problem which also makes it difficult to respond to in change in
demand.

Just -In- time- (order before it is
gone) it produces the required order at the required time. All stock is kept to
a minimum and requires efficient and effective scheduling and usually managed
by computerised systems to ensure supplies are delivered only when required. Stock
holding is reduced by not ordering stock until it is just needed. Kanban was
set up to ensure needed materials were being moved correctly to avoid build-up
of unnecessary stock The Kanban system is used as a part of the just-in-time
process. This is mostly used in retail and manufacturing sectors.

Last-in-first-out (LIFO)- Latest
stock 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 stock
being 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 used
usually for products that are perishable such as food or if they are likely to
become out of date.

Many businesses use stock control
management to avoid problems happening form holding a huge amount of stock.
Stock management may also include First-in-First-out (FIFO) or
Last-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 minimum
stock but does not rely upon providers. The Kanban system can be used to employ
just-in- time production stopping a build-up of stocks.

Stock control management

If stock levels are kept low it could
cause run out of stock, customers can not get the goods, a competitor may take
the opportunity. If the organisation is holding the stock is could cause high
storage costs, spoilage or waste, liquidity. The factors that will influence
the decision for holding particular stock levels are due to storage costs, type
of product, economies of scale, levels of demand, supplier’s reliability,
levels of competition and opportunity cost. This can all influence the decision
for holding particular stock levels needed .

It is essential to control the flow
of 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 inside
the organisation. Not the same stocks will need different forms of storage.
Stock control systems should make sure that materials are always available. One
of the main issues dealt by MowRite manufactures is that it is fully utilized.
She recommended that selling some of the machinery equipment and converting any
available space for storage to use. This increases the capacity utilisation of
the workers and reduces the cost of storage facility. She also recommends that
employing full time staff all year round will increase the motivation of the
workers which will result in saving costs of training part-time worker. The
more stock business holds the higher the cost. But business cannot afford to
run with no stock. Advantages and disadvantages of stock control. An advantage would
be that sales report shows what is selling and what is not selling. Also
receiving instant feedback on current stock levels is very helpful. the system
is mostly automatic and you will only have to use the correct input to use the
system.A disadvantage would be if you have to much stock it can cost money and
you will have to store it somewhere else. Another disadvantage would be that if
you do not have enough stock which means that you might run out of stock before
the next one delivery arrives. Disadvantage of stock control is that high costs
and the money could be used for machinery or invest in the business. Another
disadvantage is that staff training is necessary and if equipment breaks down
which could be bad for the business.

Stock control

Batch production is where quantity of
an identical product is made. Batch is different to flow because you can easily
change the machines around in batch whereas it is harder in flow because it is
continuous. The machines in batch production can simply be changed to produce a
different batch. A disadvantage of batch production is due to operation of
machinery in the production process. This could cause an issue as employees
might not have anything to do between batches which costs money. Another
disadvantage is if one mistake is made it can result in the whole batch being
wasted which costs money. Job production is when one product is made from
beginning to end before starting another one. The product is made to the
customers own requirements and this results the product to be unique. Products
made by job production are usually handmade by someone who is very trained and
skilled in their profession. A disadvantage of this product is that raw
material cannot always be bought in mass so involving that savings cannot be
made from extent buying. Another disadvantage is that expert tools are required
which can be expensive for the business. The production process can be time
strong which may result in employee demotivation. Job production compared to
flow production is that job production is a production of an individual item
whereas flow is the production of numerous items at once. Job is labour
intensive while flow is machinery intensive. Also, job production produces a
unique product however flow production produces many standardised identical
items. This particular type of production opens a different type of market for
MowRite a small market where are not many opponents. Workers are highly motivated,
and reply is quickly and any products that are defected can easily be
identified not like flow production if something goes wrong can lead to many
issues such as motivation and loss in production in workers. However, both job
and batch production rely more on labour than machinery. (tutor2u, 2017)

Other methods of production

An advantage of flow production is
that large numbers of products can roll off assembly lines at very low costs. Another
advantage of flow production is the machinery used in flow production process
can operate for longer without breaks compare to humans where breaks are
necessary to have. A disadvantage is that with many machineries it is very
difficult to change the production process. Another disadvantage is that
separate customer requirements cannot be met due to the fact that each product
made is identical and having large demand is needed because the products are
made in large quantities. And if a small error occurs if would mess up the whole
production process.

MowRite uses flow production method
this is where identical standardised items are produced on an assembly line. It
involves a continuous action of items through the production process. This
means that when the task is complete the next must start immediately. Flow
production can help the business because a large number of products can roll
off assembly line at very low prices. This is due to production continuing the
weekends and firms can benefit from economies of scale this should reduce the
price per unit of production. The can be identified due to the type of product,
use of machinery and scale of production. Mowrite produces standardised
lawnmowers, many customers do not care about the design of the lawnmower but
how it works and can benefit them from what they need it for. Their production
scale is between 8o to 90 thousand units per month this shows that MowRite is
not labour intensive due to the scale of production. The operation manager
suggests to sells some of the machinery which means the business is capital
intensive making it difficult to keep the organisation going. Employing
full-time workforce instead of temporary workers she suggests because it can
cause an issue in the business because they are not expert and skilled workers
like job production workers.

Production method

Capacity utilisation can affect
businesses massively and should operate 90-98 percent to ensure all the
resources and materials are being used entirely. In the month February the
production level decreased to 60,000 because due to the weather and lawnmower
manufactures 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 November
drastically to 40,000. This product is a seasonal item to purchase because you
do need it all year round. However, the following months the production level
increased to maximum 90,000. This is due to weather change as it would be
spring and are making more sales. (tutor2u, 2017)

Capacity utilisation looks at the
amount a firm is making compared with how much it could be making given current
resources. It is about the use that a business makes from it resources. If a
business is not able to increase output, it is said to be running at full
capacity. To increase capacity utilisation can increase production level. It
also needs to ensure there is a demand for the excess production. Business does
not always function a full capacity, it may not be possible to keep all
resources and machinery fully employed all the time. However, most businesses
would hope to be operating at close to full capacity such as 90 percent.

Capacity Utilisation

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