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
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
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
Location Strategy in Operations Management
The location of a plant or facility is the geographical positioning of an operation relative to the input resources and other operations or customers with which it interacts. Three main reasons are identified why a location strategy is required. The first reason is that a new company has been created and needs a facility to manufacture products or deliver a service to its customers. The second reason is that there is a decision to relocate an existing business due to a number of factors such as the need for larger premises or to be closer to a particular customer base. The third reason is relocate into new premises in order to expand operations. Decisions with regards to where an organisation can locate its plant or facility are not taken often, however they still tend to be very important for the firm’s profitability and long-term survival. An organisation which chooses an Continue reading
Importance of Production Planning and Control
For efficient, effective and economical operation in a manufacturing unit of an organization, it is essential to integrate the production planning and control system. Production planning and subsequent production control follow adaption of product design and finalization of a production process. Production planning is an activity that is performed before the actual production process takes place. It involves determining the schedule of production, sequence of operations, economic batch quantities, and also the dispatching priorities for sequencing of jobs. Production control is mainly involved in implementing production schedules and is the corollary to short-term production planning or scheduling. Production control includes initiating production, dispatching items, progressing and then finally reporting back to production planning. In general terms, production planning means planning of the work to be done later and production control refers to working out or the implementation of the plan. So, the system of production planning and control serves as Continue reading