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
Production Management Techniques
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
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
Dispatch Function in Production Management
Meaning of Dispatch Function Dispatch function in production management executes planning function. It is concerned with getting the work started. Dispatching ensures that the plans are properly implemented. Dispatching is the physical handing over of a manufacturing order to the operating facility (a worker) through the release of orders and instructions in accordance with a previously developed plan of activity (time and sequence) established by the scheduling section of the production planning and control department. Dispatcher transmits orders to the various shops. Dispatch function determines, by whom the job shall be done and it co-ordinates production. It is the key point of a production communications system. It creates a direct link between production and sales. A dispatcher is familiar with the productive capacity of each equipment. He always keeps an eye over the progress of orders which move at different speeds on different routes. Dispatch Procedure The product is Continue reading
Supplier Relationship Management (SRM) – Meaning and Importance
Supplier Relationship Management (SRM) is a concept in the Supply Chain Management, which considered in the aspect of establishing and sustaining the business relationship along the supply chain. Supplier Relationship Management (SRM) concerns the practical processes to integrate the communication and coordination between organizations and their suppliers. Supplier chain relationship was considered to be one of the important factors in most business, since it can influence the potential of supply chain concept. Now, the modern business seems to be more complex with high competition. Due to the information has more valuable in the supply chain management, firms then need to re-design the ways of managing and sharing information among each others. Organizations cannot independently run the business by themselves. Not only good relationship can help companies to have more competitive advantage to survive in the market, but it can also help companies expands the market too. Supplier Relationship Management (SRM) Continue reading