Standardization - Definition, Statistics, Types with examples

A Standardization  is the process of implementing and developing technical standards based on the consensus of different parties that include firms, users, interest groups, standards organizations and governments Standardization can help to maximize compatibility, interoperability, safety, repeatability or quality.

Definition of Standardization

Basically every company in carrying out the activities of organizational need to hold inventory in order to guarantee the survival of his business. In holding inventory then needed some funds that will be used to finance such supplies. Because of the required items is not always can be obtained at any time, but through the process of need grace period certain to procurement, then every company must be able to maintain a number of per-material of the optimum.

The following company prepare goods that are needed in the process of the product, because the process of product such works are used in an enterprise or material acquired or needed to be processed into series production process and be a part of the goods so produced.

From an understanding of the above, the inventory can be defined as goods that are needed in the process, production and products used in the works of a single company or material acquired or needed to be processed into a series of processes production and become part of the finished goods were produced.

In conjunction with the understanding above, also expressed that the definition of inventory is inventory in the production process should not labor so continuation rest within 1 day or more for stays paid honorarium.

The Statistics

Standardization in producing goods and services is required to maintain quality and product quality, so that subscriptions are not on other companies.

The following supplies are as a cheats assets goods belonging to the company with a view to sale in a normal business periods, or supplies of goods which are still in the working/production process, or the supply of raw materials that are waiting for their use in a production period.

Based on sense-sense expressed above, supplies goods to be processed can be classified according to the type of goods and the position of the item in it has been sorted out-order product work, namely:

1. Preparation of raw materials

Inventories of raw materials, namely supplies of raw materials are stored and will be used in the production process to be processed which after via some process is expected to be finished goods, the goods are ready to compete with the market and the need to pay attention to the items of the same product.

2. The inventory component part

The inventory component part i.e. the inventory of goods that comprise the part directly assembled with other components  through the production process before. So the shape of the goods that are part of this product does not suffer changes in the activities of the company's production process, or the goods remain just that change only certain things and the quality remains the same.

3. Auxiliary materials Supplies

Auxiliary material inventory is inventory stored materials, materials where necessary to assist his work activities the production process.

4. Inventory of goods in process.

Inventories of goods in process inventory, namely in the form of goods resulting from each section in the series production process or materials  has been processed into a form but need further process for later into finished goods.

5. Inventories finished goods

Inventories finished goods namely supplies of goods that have been processed or processed in series production process and ready for sale to the consumer/subscriptions.

So in general inventory can be defined as a number of treasures owned company which can be either a number of raw materials, the part that is provided to be processed into sequences of the series production process and the number of items contained in the each process that still requires further processing work in the activities of a number of such materials or workmanship of the goods so prepared to meet the demand for subscriptions at any time.

Standardization of products

The intent is that the existence of the inventory it will guarantee a smooth production process and consumer needs can be met on time.

In addition, the inventory can also reduce the level of dependency of the company against the supplier and the consumer, that is to say that the factory can produce continuously in accordance with the schedule established in advance without waiting for longer materials required from the supplier due to an inventory or in other words production does not need to be done specially created consumption or vice versa need not consumption urged in order in accordance with the interests of the production.

From the kinds of goods that be made as above, then the inventory in general production function is responsible for the processing of raw materials into goods,which in its implementation requires a series of fun, which is a the system.

standardization & Production Functions

One of the functions that are important in the production of activities closely related to the procurement of supplies is production planning function which is a standard in the performance of the production activities.

The following planning production (Production planning) is planning and organizing in advance of people, materials, machinery and other equipment as well as capital required for produce goods at a certain period in the future in accordance with the manuals needs or foreseen.

The above description, it can be inferred that the production activities for the past are the magnitude of the invested capital as well as the magnitude of the power who was used, and the implementation of the activities of the production processes in accordance with a predetermined capacity can be made available according to the amount of planned demand.

Outlines the following inventory functions to meet the Standardization production of goods must be praising of inventory items that allow the existence of control before production began.

Based on the above description, it can be drawn in the sense that the preparation is a major factor that allows the implementation of the production process is efficiently in accordance with the use of a predetermined capacity.

An optimal production

The existence of the company supplies can not work with an optimal production wide so the use of factors of production can not be used according to capacity. And finally the production cost per unit of final product will increase as well as the selling price per unit was also on the rise. So naturally smooth training to consumers will be interrupted anyway.

With some understanding of how it has been expressed, it can be concluded that the store can make the production can be made in accordance with the predetermined production plan where the purchase can be done based on the quantity, quality and schedule a reservation time desired needs material for other production processes is considered the most economical.

From the description-the description above it can be concluded that every company needs to store your supplies in order to smooth the company's activities in the course can be run effectively and efficiently. Because the series of operations should be viewed as a whole and mutual influence and not only on each piece.

Types of  Standardization

There are at least four levels of standardization: compatibility, interchangeability, commonality and reference. These standardization processes create compatibility, similarity, measurement and symbol standards. Types of standardization process: Emergence as de facto standard: tradition, market domination, etc

The company will be able to obtain a benefit or advantage from the Standardization of types as follows:

1. Keep and maintain a smooth operation.
2. To meet the change in demand for the product.
3. Provide flexibility in production scheduling.
4. Provide a protection or security against time variation in the time of delivery.
5. Take advantage of the size of the economic order.

In addition to the benefits that can be gained with the supplies, the company also is inseparable from the risks that arise with the determination of the amount of stock .in large numbers, so can inflame loss due to the magnitude of the cost, so that the profit of the company by itself will be reduced anyway.

An error in the determination of the magnitude of investation in inventory will hit corporate profits ...

Embedded in the inventory will determine the hardness, high rates of profitability are reached. This is caused due to the costs associated with warehousing and clearance items will add to the overall cost of operation. And the higher the capital in running for this compared to the volume of sales, it will be the lower capital turnover will be achieved and therefore will be obtained investation profit lower anyway.

Standardization Example

For example, the Microsoft Company uses global standardization in marketing by keeping the appearance of the product relatively unchanged between different markets. The company uses the same design theme even when different languages are presented on the products.

 
The presence of investation in stock that is too large compared to the needs, will enlarge the interest expenses, the cost of storage and maintenance at warehouse, zoom to the impossibility of loss due to damage, the decline of quality, so that its impact will be reducing corporate profits.

And vice versa, there is a investation that is too small on the inventory can also provide effects that could reduce profits, due to shortage of raw materials so that the company could not produce normally.

Conclusion

As a whole from the description-the description above it can be concluded that the supplies as one of the decisive elements in the company's operations continuously in forged, altered and resale is very important for the company because function coordinates the series of consecutive activities in purchasing materials, processing of materials into goods and submit it to the subscriptions, while it may set the amount of the amount of capital required to hold the supplies.