Japanese quality movement was a miracle and created world-class products. All these methodologies and concepts developed these quality gurus for internal process and quality improvement crisis are still practiced in various companies. These have become universal approach to improve the quality and manage performance crisis. Quality gurus created work culture and dedicated teams, which developed Japanese production systems through group activities. Toyota Corporation developed a new philosophy to create major change in manufacturing systems and delivered world-class products with internal benchmark for quality of vehicles. In reality, Toyota changed external business environment for competitors and created a long-lasting impact on automobile industry. The Toyota Way is a set of principles and behaviors that underlie the Toyota Motor Corporation’s managerial approach and production system. It consists of principles in two key areas: continuous improvement, and respect for people. Toyota use operational excellence as a strategic weapon. Company places the highest value Continue reading
Operations Management Techniques
Inventory Management System – Meaning, Evolution, Types, and Benefits
Inventory management could as be defined as managing inventory with the primary objective been determining and controlling stock levels within the facility to balance the need for product availability against the need for minimizing stock holding and handling costs. A management system is an information system that is used by a business to ensure they can manage and fulfill their tasks through a framework of procedures and processes. Typical management systems are used to maintain data within an organization as well as ensuring data is shared accurately, or for the management of services or products offered. A management system could also be defined as the integration of traditional management methods with a computer system to create a tool for strategic and automated information management. An inventory management system is usually used to automate a sales order fulfillment process. These types of system are designed containing a structure whereby it contains Continue reading
Purchasing Policy – Principles and Implementation
Purchasing Policy Principles The major principles on which purchasing policies should be based are a sound orientation, reflect a cross —functional approach and be directed at improving the company’s bottom line. i. Business Orientation Developing a purchasing and supply strategy requires a thorough understanding of the company’s business policies. The following questions are important to determine how purchasing and supply strategies will need to support the company in meeting its goals and objectives:- What end-user market is the company targeting and what are the major developments going on in those markets? What competition is the company suffering from and what leeway does the company has in setting its own pricing policies? To what extent can material’s price increases can be passed onto the last customer or is it impossible? What changes are happening in the company’s product, production and information technologies? What investments will be made by the company in Continue reading
Supply Chain Performance Measurement
The main objective of performance measurement is to provide valuable information which allows firms to improve the fulfillment of customers’ requirements and to meet firm’s strategic goals. It is therefore important to measure how effectively the customers’ requirements are met and how resources are efficiently used to reach a certain level of customer satisfaction. Supply chain performance measurement is used to evaluate the effectiveness and efficiency of organizational structures, processes and resources not only for one firm but also for the entire supply chain. It provides some basis for understanding the whole system, influence the behavior and supply information about the performance of the supply chain participants and stakeholders. Developing and using performance measures is an essential function of management. The usage of performance measurement systems also supports the objectives of transparency and a mutual understanding of the whole supply chain. Supply Chain Controlling One of the main tasks of Continue reading
Zara’s Lean Operation: Source of Competitive Advantage
Fashion giant, Zara, forms part of the retail group ‘Grupo Inditex’ which is one of the “largest, fastest growing and successful” clothing retailers across Europe. Grupo Inditex is formulated by an amalgamation of major high street names from across Europe, including Zara, Pull and Bear and Bershka, in total boasting 3,825 stores across 68 countries.Zara’s success story begins by offering a product range capable of catering for men, women and children, providing affordable and stylish clothes whatever the season. Coupled with this, is their keen eye for discovering new fashion trends and translating these trends from the catwalk to the high street, both quickly and affordably. Zara boasts a marketing strategy of firstly product variety with a focal point of ensuring speed to market. At present, Zara launch 10,000 new articles per year across their portfolio of stores. Finally, store location, as any marketing is left to store location rather Continue reading
Case Study: How Total Quality Management Help Xerox Back on Track
Xerox Corporation is an American company founded in 1906 as Haloid Company. The company began as a manufacturer of photographic paper and equipment. Joseph Wilson inherited the business from his father who was the founder of the company and propelled it to new heights. Wilson signed an agreement with Chester Carlson to develop Carlson’s idea of printing using the toner commercially. The technology was named Xerography. The company changed its name to Haloid Xerox in the year 1958 and subsequently in 1961 to Xerox Corporation. Xerox has a presence in over 180 countries worldwide, and it employs over 140,000 people. The company deals in document management, business process solutions and software services. Xerox Company provides a multitude of products and services to its clients worldwide. They include business services, office equipment, and production equipment. The company’s dynamic nature has enabled it to survive technological changes in the industry. Xerox has made several Continue reading