Purchasing, Inventory, And Quality Control
Purchasing & Suppliers
Purchasing Procedures & Inventory Control
Planning & Quality Control
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Chapter 13Purchasing, Inventory, and Quality ControlCopyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinPurchasing, Inventory, And Quality ControlPurchasing & SuppliersPurchasing Procedures & Inventory ControlPlanning & Quality Control13 - 2©Purchasing“determines the company’s needs and then finds, orders, and assures delivery of those items.” Must Consider Quality ControlPurchasing Involves:Just-In-TimeSupplier-Base DownsizingFully Integrated Production NetworksStockoutsRoyalty-Free/CORBISSpecial SituationsAffecting PurchasingExpected Changes In PriceOrders For Specialty GoodsShort SupplyOf MaterialsExpected Changes In Product DemandSources Of SuppliersYellow Pages- www.yellowpages.comThomas Register of American Manufacturers- www.thomasregister.comMcRae BluebookTypes Of SuppliersBrokersJobbersWholesalersProducersPhotoLink/Getty ImagesSupplier Selection/StandardsPriceQualityServiceReliabilityEvaluate PerformancePhotoLink/Getty ImagesPurchaseOrder FlowchartRequisition OriginationInventory Low- ObservationNeed For Item- Automatic RecognitionManager RequestCustomer RequestRyan McVay/Getty ImagesSemiannualProduction ScheduleOrdersPurchaseStandingPurchasing& ComputersTrack ItemsSpot NeedsIdentify Source Of SupplyProvide InformationFor OrderingChecking Accuracy Of ReceiptsInventory“formal list of all the property of a business, or the property so listed.”John A. Rizzo/Getty ImagesMaterialFlow & InventoryGoodsFlow & InventoryTypes Of InventoryFinished GoodsWork-In-ProcessRepair PartsSuppliesOfficeStoreShopMiscellaneousThe 80-20 Rule“approximately 80 percent of a company’s income usually comes from 20 percent of its products.”InventoryCarrying CostsStorageInsurance/TaxesLost OpportunityTheft/DestructionObsolescence/DeteriorationEconomic Order Quantity“is the quantity to purchase that balances the cost of placing the order with the cost of carrying the inventory.”Handling Demand VariationsAllow To OccurUse Self-Service/Hire TempsInventory Buildups/DrawdownsComplementary ProductsSubcontractLose SalesInducements During Low DemandRoyalty-Free/CORBISScheduling“setting the times and sequences required to do work.”Quality“product characteristics and/or the probability of meeting established standards.”Standards = Customer ExpectationsQuality InvolvesLookCapacityAccomplishmentCreativityReliabilityEtc.Total Quality Management – www.tqmnet.comStrengthColorTasteSmellContentWeightToneImproving &Controlling QualityQuality CirclesDesignGood ProcessJohn A. Rizzo/Getty ImagesQuality Circle OperationDeming’s 14 PointsCreate ConstancyAdopt PhilosophyCease InspectionEnd Price Tag AwardsConstant ImprovementTrainLeadDrive Out FearBreak Down BarriersEliminate SlogansEliminate QuotasPride Of WorkmanshipEducateTransformQuality Control StepsSet StandardsMeasure PerformanceCompare PerformanceMake CorrectionsQuality Control FeedbackChanging Inventory Levels(Discussion Question #3)
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