Stock, Quality and JIT
By Harvinder Basra
Amazon holds only finished goods in stock to help with their fast paced work. Finished goods are products that have been completed to the right quality and are waiting to be delivered. This helps them to just collect, pack and send.
Amazon may not want hold huge amounts of stock due to the fact that it can take up a lot of space as well as it can be stolen. Also, holding stock can cost money and while it is just sitting there, it can become out of date.
There are two types of stock management. One is called stock rotation where you use the oldest stock first to put it in good use and the other one is stock wastage which is simply wasting stock in order to stay up to date.
A stock control is able to help you track your stock and be able to analyse your stock situation. it can help a business to decide when to reorder and how much to reorder.
Here is a visual chart to look at. a stock chart is very helpful. In particular of the reorder level. This is because you don't even have to think about it. You just do it. Once your stock is at that certain level, you juts reorder it.
JUST IN TIME
Just in time is a method that has been invented by the Japanese. Just in time is a method where components arrive just in time as they are needed. This helps a lot as it save room, money and the products do not go out of date. This way they are upto date with all trends and save money.
BMW is a world wide organisation and is very well known for their products. However, BMW do not have stock in the workplaces at the ready. Some say it is very stupid that they might need spares etc. However, this works very well for them as the timings of delivery is very precise. Also, keeping parts isn't so good as all differ and change a lot from a M3 to a X6. The parts change constantly and they are very likely to become out dated and even broken. This way they do not waste any money holding stock.
Quality is all about providing the customer with what they want in order to keep them satisfied and loyal. Quality is what the customer is after. Quality is the standard of something measured against to other similar things. This how different brands compete in order to win the customer over.
Poor quality is the exact opposite that brands aim for. This is because this is the opposite to what the customer is after. Over the years there has been many brands who have delivered us poor quality.
Things a customer would consider as poor Quality would be:
1. Products that do not work well.
2. Products that do not do what they are said to do.
3. Product is delivered late.
4. Poor instructions.
5. Bad customer service or irresponsive.
These are 5 things that are able to put off a customer from purchasing a product.
Poor Quality can lead to loss of customers and profits as well a bad reputation that would put all customers of due to the fact that no customer would want a product from a brand that has a bad reputation. This is because most people would want a product that they could have to show off to their friends.
Quality control is very important in a business. There is two types of quality control that is used in business. One method is called Quality Assurance which is when you check the product through every stage to make sure that it is 101% perfect and it meets expectations and the other is called quality control which where the business only check the product once it is finished. Quality Assurance is a lot better because you check it through every stage therefore you are confident that there is no mistakes in any of the stages. And if a mistakes is made, you can easily go back and repair it. On the other hand if a mistake is made and you only realise once the product is finished, you would have to take it apart and fix it. This would delay the product, disappoint customers and you would either have to decrease the price of the product or give the customer some reward as an apology.
Total Quality Management
Total Quality Management is a method where everyone checks the quality standard of a product. This is a good method because you are able to get more than one person's opinion on a product also you can make sure that faults are spotted if one person is not able to find it. This is able to keep the reputation and quality expectations of a brand up due to the fact that customers are happy with their products because of no faults etc.