Warehouse management systems (WMS) is described as the advanced technology and operating processes which optimize all warehousing functionalities. These functions begin from receipts from suppliers and ending with shipments to the customers, also including all inventory movements as well as information flows in between. Warehouse management systems are mainly associated with large and complex distribution operations. However even smaller and middle size companies are identifying the importance of WMS in today’s scenario of integrated logistics, just-in-time delivery and e- commerce fulfillment. In practical situation, Warehouse Management System is used mainly in integrating computer hardware, software and peripheral equipment along with good operating practices so as to manage inventory, space, labour, and capital equipment in ware houses and distribution centres. Implementing of WMS serves the company by increasing its competitive advantage in matters of labour cost, improval of customer service, increasing inventory accuracy, and improving of flexibility and responsiveness. A WMS Continue reading
Operations Management
Recent Trends and Developments in Purchase Management
Many companies are now confronted with diminishing growth opportunities, which results in a situation where an increase in turnover can only be realized at the expense of the competition and only with a great deal of effort. This leads to increased pressure on sales prices and consequently on cost prices and margins, which causes two developments. On the one hand it has resulted in shifts of power between purchasing and selling parties in many markets. Due to the fact that in many cases the market has changed from seller’s market to buyer’s market, the role of the buyer is now more dominant than a number of years ago. On the other hand the increasing pressure on sales prices and margins has resulted in an increased pressure on direct materials-related costs. Because the purchasing prices determine the sales prices in the industrial sector to a large extent, the company will be Continue reading
Assuring Quality in the Product Development Process
A venture isn’t fruitful in light of the fact that it has been finished on schedule and inside a spending plan. There is one other factor that is basic to progress: quality. Regardless of how rapidly and inexpensively a task is finished, partners won’t be upbeat if the nature of the item or administration doesn’t live up to their desires. Along these lines, one significant technique to follow and examine the nature of the task and ensure it meets the necessities of the clients is Quality affirmation. QA according to ISO 9000 is characterized as “a component of value the executives concentrated on giving certainty that quality prerequisites will be satisfied”. This deformity counteractive action in quality confirmation contrasts unpretentiously from imperfection recognition and dismissal in quality control and has been alluded to as a move left since it centers around quality prior all the while. The expressions “quality affirmation” Continue reading
Purchasing Management – Meaning and Functions
The purchasing department in any organization acts as an interface between suppliers of materials and the production function. Since materials comprise one of the largest sources of cash outlay in any manufacturing firm, their acquisition requires careful management. The responsibilities of a purchasing department include learning the material needs of the organization, selecting suppliers and negotiating price, ensuring delivery, and monitoring cost, quality, and delivery performance. Occasionally the term procurement is used to describe the acquisition of goods and services. This is a broader term and includes purchasing, stores, traffic, receiving, and inspection. The principal goals of purchasing are related to quality, service, price, and vendor relations. In addition to the obvious necessity of quality purchased parts, the purchasing department must consider vendor reliability, maintenance and return policies, and other aspects of customer service. Moreover, they must continually seek new vendors and products and be able Continue reading
Meaning of Reliability and Maintainability
Reliability Reliability may be defined as the probability, or degree of confidence that a product will perform a specified number of times under prescribed conditions. For example, the reliability of an electrical changeover switch may be defined as 0.9999. This may hold true only when it is operated with an input voltage of 440 volts AC, in an environmental temperature range of 0 to 80 degrees C, with humidity less than 90 percent, if its housing has never been opened, if it has been operated less than 1 million times, and if its is less than five years old. Even if any one of these conditions is violated, then the reliability concepts goes off. When parts are interdependent, and especially when there is a large number of them, achieving a high degree of reliability for a product presents and real challenge. Maintainability Maintainability refers to the ability of the user Continue reading
Vendor Managed Inventory (VMI)
Vendor Managed Inventory (VMI) is a supply chain practice where the inventory is monitored, planned and managed by the vendor on behalf of the consuming organization, based on the expected demand and on previously agreed minimum and maximum inventory levels. In its simplest form, Vendor Managed Inventory is the process where the vendor assumes the task of generating purchase orders to replenish a customer’s inventory. VMI is a term that is used to describe many types of supply chain initiatives. Traditionally, success in supply chain management derives from understanding and managing the trade off between inventory cost and the service level. The Vendor Managed Inventory Approach Vendor Managed Inventory reduces stock-outs and reduces inventory in the supply chain. Some features of VMI include:- Shortening of the supply chain Centralized forecasting Frequent communication of inventory, stock-outs, and planned promotions. Electronic Data Interchange (EDI) linkages facilitate this communication. No manufacturer promotions Trucks Continue reading