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What sort of Stock Control Operates At the Birmingham Mint? And how is it efficient?

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Introduction

What sort of Stock Control Operates At the Birmingham Mint? And how is it efficient? I am currently investigating ways in which companies can cut costs and increase efficiency, one way of doing this is to introduce lean production to the company. Lean production involves a whole range of waste saving measures, which have the potential to raise productivity. This includes organising people effectively, cutting down on stocks, improving quality through a market-oriented approach. To help enforce these, Western companies have adopted lean production strategies from the Far East. For example Kanban control (see appendix1, 2 and 4 for related articles). I have chosen to focus my task on stocks and if or not they can be cut. Stocks are vital to every company but it's how you control your stocks, which indicates how efficient the company is. For my task I tried to research both Eastern and Western ideas on Stock Control using textbooks and the Internet. ...read more.

Middle

* Energy costs (Heating for example). * Manpower costs (security guards for example). *Interest charges on the money tied up in the stock. A disadvantage for using the JIT method of stock control is that you rely more on your suppliers than you would if you practice JIC stock control. Although it does help produce a greater relationship with the stakeholders of the company. As you can see from Appendix 9 that with JIT the Birmingham Mint's buffer stock is at a minimum, which indicates that the Mint's production process, is already increasing in efficiency as if the buffer stock s down then the amount of dead money has also decreased dramatically. However the JIT method is not perfect, because unlike the JIC method it could not accommodate for a sudden increase in public demand, as they would not have enough buffer stock to cope with the boom in demand. ...read more.

Conclusion

The way, in which the company can increase in productivity without investing any real money, this relates to Kaizen (see appendix 4), which believes in small steps for continuous improvement. If I would do this assessment again or organised my time better then I would of done the same for another company as well, I would of chose a completely different company for instance a mail order company. Another idea would be to investigate the effect on the level of productivity if the Birmingham Mint were to organise people better for example de-layering. I personally feel that the Birmingham Mint chose the correct stock control as it did increase efficiency, mostly by having no buffer stock, which means that they would have untied the capital, which was previously tied up in stock. Resource List Nuffield book of Economics & Business. A-Z of Economics and business. Times 100. The Internet Interview with a Director of the Birmingham Mint. By Matthew Vernon ?? ?? ?? ?? ...read more.

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