F296 Revision - Production
- Created by: ellelorenross
- Created on: 04-01-16 16:19
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- F296 Revision - Production - Sheet 1
- Stock Control
- Reorder Level Stock
- Can help to cope with fluctuations in demand
- Satisfies demand
- Buffer stock can be used as back up
- Saves costs of over buying and waste of products
- Opportunity costs - JIT
- Waste
- Depreciation of goods/assets - wont be able to sell them and make much money
- Storage costs - rise when large amount of stock are held
- JIT (Just In Time) Stock
- Lower storage costs - no opportunity costs and cost can be used for more products
- Less capital tied to stock
- Less waste - stock wont become perishable/out of date
- Less chance on panicking about quality of the product
- Little mistakes can be made with ordering and delivery - if delivery missed no products to sell
- Risky type of stock control
- Reorder Level Stock
- Break Even Output
- BEO
- Can be used to check for profit target
- W/o profit at different output levels
- Can see what changes need to be made
- Gives clues how to get a lower BEP
- Impossible to w/o how much each customer/business sells/buys on average
- Different VCs per customer
- Assumes FCs dont change
- FORMULA = fixed costs/contribution where contribution = price - vc
- BEO
- Laws for Food Labeling and Ethics
- 1) Not having the correct composition of a legal name
- 2) Incorrect authoritative decleration
- 3) Expanding a food
- 4) Failure to describe a process or treatment
- 5) Substitution of cheaper ingredients
- 6) Incorrect geographical origin
- Better brand image
- Higher wages for employees
- Can apply to most stakeholders
- Incentives
- Costs
- Standard Costing
- Able to work out variance
- Indicates if any changes need to be made
- Be able to set targets and lower costs
- Quality may reduce
- Cost will change due to inflation/sales
- Absorption Costing
- Choose what suits your business
- Share out costs between units
- Can change costings for different products
- Can work out prices more easily
- Ruins profitability
- Time consuming and diificult to work out
- Full Costing
- Easy to work out a price for a product/service
- FORMULA = All Costs / Units
- Easy to see how much profit can be made and allow the business to increase costs
- Ignores competitors and there pricing
- Ignors price elasticity and how price can suddenly drop
- Only works on one singular product not for a whole business
- Contribution / Marginal Costing
- Easier to get control over pirces
- Best method to get all the profit back to the business for a little cost
- Eliminates variable costs
- Increases overall costs as this method has to be implemented and staff have to be trained highly to do this
- Doesnt take into account semi-variable costs
- Only applies to short term users and cannot be used for long term operations
- Standard Costing
- New Technology
- Robotics
- Greater accuracy when repetition is needed
- Recudes human error and boredom
- Increases efficiency and flexibility
- No employee wages
- Down time if robotics break and reduces productivity
- Expesnive to implement
- CAD (Computer Aided Design)
- Changes can be made cheaply and easily
- Easily be tested for faults so prevents problems
- Increases quality
- Initial costs are high
- Training costs to be able to work the machines
- CAM (Computer Aided Manufacturer)
- Produces exactly what is designed - ensures quality
- Reduces human error
- Initial high costs
- Faster Method
- Staff need to be trained, increasing training costs
- Stock Control Software - EPOS
- Automatic reordering when stock is low
- Easier to control and more efficient
- JIT increases cash flow
- Able to hold less tock and reduce tstoage costs
- Expensive to maintain and buy
- Staf may forget about incoming stock
- Robotics
- Waste and Disposal
- Disposal
- Energy Recovery
- Recycling
- Reuse
- Minimisation
- Prevention
- Stock Control
- Waste and Disposal
- Disposal
- Energy Recovery
- Recycling
- Reuse
- Minimisation
- Prevention
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