Implement systems to control

[Midfielder]

Fuller details ... Implement systems to control stock, expenditure/cost, wastage/shrinkage and risks to health and safety in accordance with the business plan.

Post your tho's on this element on this thread

[ashrafun]

For a small business, stock/inventory control is a crucially important aspect of business and it does play a very important role in the daily operations of your company. Supplies can have problems and other 3rd party problems can result in unavailable stock.

Holding too much stock can result in unavailable funds for other areas of your business and extra storage costs, however having too little stock can result in loss of sales. One should also monitor slow moving stock as holding a lot of this will be a drain on resources, the is a very large balancing act.

When holding stock one needs to be aware of the carrying costs which include: storage (holding the stock), insurance (in case of theft/damage), costs on funds tied up (interest or lack of investment opportunities) and the costs of damaged that often accrue in the workplace. One’s task through stock control systems is to minimise stock holding costs but at the same time making sure not to lose money by losing valuable sales in connection with the business plan.

[nirmala]

The "cost of quality" isn't the price of creating a quality product or service. It's the cost of NOT creating a quality product or service.
Every time work is redone, the cost of quality increases. Obvious examples include:
•The reworking of a manufactured item.
•The retesting of an assembly.
•The rebuilding of a tool.
•The correction of a bank statement.
•The reworking of a service, such as the reprocessing of a loan operation or the replacement of a food order in a restaurant.
In short, any cost that would not have been expended if quality were perfect contributes to the cost of quality.
Prevention Costs
The costs of all activities specifically designed to prevent poor quality in products or services.
Examples are the costs of:
•New product review
•Quality planning
•Supplier capability surveys
•Process capability evaluations
•Quality improvement team meetings
•Quality improvement projects
•Quality education and training
Wastage/Shrinkage
Length of time a taxpayer owns an asset and during which its market value goes up or down. A period of up to 12 months is called short-term, a longer period is called long-term.
•Scrap •Rework
•Re-inspection •Re-testing
•Material review •Downgrading

[poonam]

The aim of stock control is to minimize the cost of holding these stocks whilst ensuring that there are enough materials for production to continue and be able to meet customer demand. Obtaining the correct balance is not easy and the stock control department will work closely with the purchasing and marketing departments.
The marketing department should be able to provide sales forecasts for the coming weeks or months (this can be difficult if demand is seasonal or prone to unexpected fluctuation) and so allow stock control managers to judge the type, quantity and timing of stocks needed.
It is the purchasing department’s responsibility to order the correct quantity and quality of these inputs, at a competitive price and from a reliable supplier who will deliver on time.
As it is difficult to ensure that a business has exactly the correct amount of stock at any one time, the majority of firms will hold buffer stock. This is the “safe” amount of stock that needs to be held to cover unforeseen rises in demand or problems of reordering supplies.
If a business holds too much buffer stock (stock held in reserve) or overestimates the level of demand for its products, then it will overstock. Overstocking increase costs for businesses as holding stocks are an expense for firms for several reasons.
1• Increases warehouse space needed
2• Higher insurance costs needed
3• Higher security costs needed to prevent theft
4• Stocks may be damaged, become obsolete or perish (go out of date)
5• Money spent buying the stocks could have been better spent elsewhere

tutor2u.net/business/gcse/production_stock_control.htm

[rosebud]

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[anilla]

Maintaining the best level of stock is not easy. It is a balancing act.

The competing needs are:
- Minimize the investment in stock
- Be able to satisfy customer needs 100% of the time
- Never have stock that cannot be sold or used within a determined time-frame
For many companies that have to carry stock, this juggling act can either make or break them.

There is no more critical part of a business than the inventory area (with the possible areas of marketing and credit control).
- Purchasing has to buy in sufficient quantities at the best prices
- Accounts Payable is the department that maintains the working relationship between your Purchasing and the suppliers Sales operations. (Be careful not to jeopardise your trading relations with your suppliers – to them, you are a customer and I hope that you want to become one of their “A” grade customers)
- Production department uses the goods to manufacture new products – insufficient goods at production time means no production (or maybe emergency purchasing at expensive prices)
- Distribution section cannot send out what is not available
- Maintenance department may not have spare parts to service equipment – again production ceases.

Having a OH&S Manual gives you and your staff a framework for communicating and acting in a safe, responsible manner. The only place to start your communication is in writing. This serves two purposes, firstly, the business isn't dependant on any one person to 'part' with their knowledge in order for other staff members to understand how to work safely. Secondly, if there is ever any question, or inspection that requires you to produce your Company OH&S Policies, then there is a very clear and concise written record of what they are and how those principles have been communicated to your staff. Currently the government has placed the responsibility of the safety of your workers entirely on the employers' shoulders. Having an effective OHS System balances that responsibility between you and your staff. After all, it has to start with the individual, and that means having all of your staff sign off an undertaking that they will follow your policies and work safely.

www.safetyculture.com.au/ohssystem/policy_manual.php

blog.australiansmallbusiness.net.au/2006/03/stock-control.html