Operations Management is very important for managing large firms and running them successfully. Operation management is mainly related to production of goods and services in an organisation. The main purpose of the operations management is to run the business operations successfully, smoothly and effectively by using the minimum resources and meeting customer expectations. Thus we can say that operations management is the process of converting minimum input like raw materials, labour to produce maximum output like products, goods and services. Operations Management is very crucial factor in order to increase company’s profit. Operations management is not only responsible for producing goods but also take control of distribution of services. Operations management plays a very crucial role in organisations as they produce professional managers which are capable of achieving organisation’s strategic goals in a defined period of time. Operations management is the heart of any organization as it controls the whole Continue reading
Operations Management
7 Important Quality Control Tools
Quality Control (QC) is a system of routine technical activities, to measure and control the quality of the inventory as it is being developed. The Quality Control system is designed to: Provide routine and consistent checks to ensure data integrity, correctness, and completeness; Identify and address errors and omissions; Document and archive inventory material and record all QC activities. Seven Quality Control Tools An organization can be made better by applying proper quality management and quality management tools and techniques. The following seven quality control tools are considered basic tools for achieving quality. Tools Techniques Checksheet Departmental purpose analysis Pareto diagram Poka-yoke Histogram Fault tree analysis Control chart Design of experiments Scatter diagram Quality function deployment Statistical process control Flowchart Failure mode and effects analysis Cause and effect diagram Benchmarking The above basic tools are classified under 2 categories “Data Acquisitions” and “Data Analysis”. Check sheet, Histogram and Control chart Continue reading
Inventory Management Techniques
The term inventory derives from the French word inventaire and the Latin word inventariom which simply means a list of things which are found. The term inventory includes materials which are in raw form, or are in process, in the finished packaging, spares and the others which are stocked in order to meet all the unexpected demands or distribution in the future. This term usually refers to the stock at hand at a particular period of time of all those materials which are in raw form, those goods which are in progress of manufacture, all the finished products, merchandise purchased products for resale of those products, tangible products which can be seen, touched, measured or are countable. In a connection with the financial statements and records of accounting, the reference may be to the amount assigned to the stock or the pile of goods owned by an enterprise at a Continue reading
Purchase Management and Methods of Buying
Purchasing is a function of procuring goods and services from sources external to the organization. In the words of Alford and Beaty,”Purchasing is the procuring of materials, supplies, machine tools and services required for the equipment, maintenance, and operation of a manufacturing plant.” According to yet another authority,” Purchasing is the procuring of materials, tools, stores and services required for the manufacture of a product, maintenance of the machines, and un-interrupted running of the manufacturing plant in a manner that guarantees the marketing of the company’s products in the quantities desired, at the time promised and at the competitive price consistent with quality desired.” Purchasing in essence is the task of buying goods of right quality, in the right quantities, at the right time and at a right price. Since raw materials, components and services account for a significant as much as 50 to 70% proportion of the company’s total Continue reading
Inspection in Production Management – Concept, Objectives and Stages
Production control is introduced not merely to ensure that the goods will be produced on time, but is also meant to see that the goods produced are of the right quality. This is done through inspection of the products manufactured. Since the purpose of inspection is to compare the products with the standards of quality set earlier, it too, can be regarded as an effective agency of production control. One way of inspection is to examine the quality of finished products at the end of the process of production. But this may involve too much of wastage in the form of rejected products. To minimize the rejection of defective products, inspection may be conducted at every stage of production. Inspection can occur at three points: before production, during production, and after production. The logic of checking conformance before production is to make sure that inputs are acceptable. The logic of Continue reading
Analyzing Toyota’s Recipe for Success – The Toyota Way
The fundamental reason for Toyota’s success in the global marketplace lies in the so called “Toyota way”. The Toyota Way is not only about technology and efficiency, it is about doing the right thing for the company, its employees, the customer and the society as a whole. In other words, the incredible success of the Toyota way is a direct result of operational excellence. Toyota has turned operational excellence into a strategic weapon. This operational excellence is only in part based on tools and quality improvement methods made famous by Toyota in the manufacturing world, such as JIT, Kaizen, and one-piece-flow. Although such techniques helped spawn the “lean manufacturing” revolution, tools and techniques are no secret weapon for transforming a business. Toyota’s continued success at implementing this tools stems from a deeper business philosophy based on its understanding of people and human motivation. Its success is ultimately based on its Continue reading