Quality is a continuous process that can be broken anywhere in the system of supply and customer service. By letting every person know how their activities help fulfill customer’s requirements, the organization can motivate their employees and supplies to provide quality consistently. They must also realize that throughout the organization they will have both internal customers and’ supplies to those outside the organization. In general, a process helps to change a set of inputs into desired output in the form of products or services. Proper investigation of the inputs and outputs of the organization help to determine the action to be taken for the improvement of the quality. The quest for continuous improvement of quality is a continuous cycle. The process on which continuous improvement is based is generally known as “Deming Wheel“. The wheel represented below shows a continuous movement in a certain direction. The idea behind this that Continue reading
Operations Management
Inventory Management Concepts in Supply Chain Management
Inventory management aims to handle all function correctly with tracking and management of material. Inventory management is very wide definition like to replenishment lead time, carrying costs of inventory, asset management, forecasting, valuation, visibility, future inventory cost, space, quality etc. The ultimate aim of supply chain management is how well you manage your inventory. Manufacturers face a number of challenges which require not just exceptional planning but also an effective communication setup that keeps you updated at the spur of a moment. From rapid changes of customer demands, globalization or even natural calamities can cause your inventory to be stuck up paving way for no wages to the employees. Therefore there should be a quick information system to discuss the inbound and outbound issues affecting the demand and supply. For this there should be a well managed supply chain inventory management in order to keep the business running without any Continue reading
Features of an Ideal Plant Layout
Plant layout and design is an important component of a businesses overall operations, both in terms of maximizing the effectiveness of the production process and meeting the needs of employees. Plant layout refers to the arrangement of physical facilities such as machinery, equipment, furniture etc. within the factory building in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of material to the shipment of the finished product. It may be defined as a technique of locating machines, processes and plant services within the factory so as to achieve the right quantity and quality of output at the lowest possible cost of manufacturing. It involves a judicious arrangement of production facilities so that workflow is direct. The basic objective of layout is to ensure a smooth flow of work, material, Continue reading
Order-to-Cash Process – Meaning and Steps
Order-to-cash process consists of financial transactions with the customers in a supply chain. Order-to-cash process starts with the customer placing the order and ends with receiving the payment from the customer. The steps involved in the order-to-cash process are explained below. The order is placed by the customer directly through phone, fax, or the internet. Then, the inventory is checked for the availability of the product in the quantity required by the customer. The firm then checks the customer credit status to decide whether or not to extend credit to the customer. For this, the customer’s credit limit and the status of receivables from the customer are checked. If the customer has placed the order within the credit limits and has nil or permissible receivables, then the product can be delivered to the customer. If not, the firm has to evaluate whether to fulfill the order or to reject it Continue reading
Ultimate Guide to Cause & Effect Diagram
The cause & effect diagram is the brainchild of Kaoru Ishikawa, who pioneered quality management processes in the Kawasaki shipyards, and in the process became one of the founding fathers of modern management. The cause and effect diagram is used to explore all the potential or real causes (or inputs) that result in a single effect (or output). Causes are arranged according to their level of importance or detail, resulting in a depiction of relationships and hierarchy of events. This can help you search for root causes, identify areas where there may be problems, and compare the relative importance of different causes. Causes in a cause & effect diagram are frequently arranged into four major categories. While these categories can be anything, you will often see: manpower, methods, materials, and machinery (recommended for manufacturing) equipment, policies, procedures, and people (recommended for administration and service). These guidelines can be helpful but Continue reading
Job Production – Meaning, Characteristics and Importance
Job production is characterized by the manufacture of one or few numbers of a single product designed and manufactured strictly to customer’s specifications, within, the given period and wit/tin the price fixed prior to tile contract. Some typical examples of industries engaged in jobbing production are: general repair shops; special purpose machine tool manufacturers; workshops to manufacture jigs and fixtures for other units; building contractors; tailoring shops manufacturing made-to-measure suite of clothes; manufacturers of ships, cranes, furnaces, turbo-generators, pressure vessels; and others manufacturing articles made to customers orders. Characteristics of Job Production Job production plays a crucial role in meeting the demands of customers who seek personalized, high quality products that cannot be mass produced. By focusing on customization and attention to detail, businesses engaged in job production can differentiate themselves in the market and cater to niche markets that value exclusivity and uniqueness. Job production also allows for greater Continue reading