Int 2 Operations

Quality Marks

2007-01-25T19:49:00.000-08:00

Here are some well known standards of Quality:

Product Recalls

2006-12-15T02:32:00.001-08:00

Sometimes products have to be recalled due to faulty workmanship. It costs organisations a lot of money, but in the long run it is better to recall rather than face the erosion of their reputations, or lack of customer care.

Dell Battery Recall

The computer company Dell are recalling over 4 million Laptops due to battery failure. Dell is being perceived by customers as un trust worthy from a large company Sony as they have found faults in Dells Batteries.

Faulty asthma inhalers recalled

Asthma inhalers are being recalled because the valves were found to be causing them to give higher than needed doses. Patients, pharmacies and wholesalers were asked to check their Salbulin Inhalers CFC-Free to see whether they are part of the affected batches.

Unsafe beer bottles

Millions of bottles of Budweiser beer have been withdrawn from sale across Europe following safety concerns.

Brewing giant Anheuser-Busch said it was recalling all its twist-off-top bottles from 12 European countries due to a problem with the packaging which could lead to slivers of glass breaking off the bottle rims.

Total Quality Management

2006-12-15T02:29:00.001-08:00

Total Quality Management is a management approach of an organisation centred on quality, based on the participation of all its members and aiming at long-term success. This can be achieved through customer satisfaction and it comes with benefits to the company and to the employees who work there.

TQM is a way of thinking about goals, organisation, people and process to ensure that he right thing is done first time.

There are 8 key elements to TQM:

customer-focused organisation - organisations depend on their customers and therefore should understand current and future customer needs, meet customer requirements and strive to exceed customer expectations

leadership - leaders establish unity of purpose, direction and the internal environment of the organisation. They create the environment in which people can become fully involved in achieving the organisation's objectives

involvement of people - people at all levels are the essence of an organisation and their full involvement enables their abilities to be used for the organisation's benefit

process approach - a desired result is achieved more efficiently when related resources and activities are managed as a process

system approach to management - identifying, understanding and managing a system of interrelated processes for a given objective contributes to the effectiveness and efficiency of the organisation

Kaizen (continual improvement) - continual improvement is a permanent objective of an organisation

factual approach to decision making - effective decisions are based on the logical and intuitive analysis of data and information

mutually beneficial supplier relationships - mutually beneficial relationships between the organisation and its suppliers enhance the ability of both organisations to create value

Computerised Stock Control

2006-12-07T04:51:00.000-08:00

COMPUTERISED STOCK CONTROL

Many organisations now hold their details on a computer DATABASE, which helps keep BALANCE up-to-date after the stock has been RECEIVED and ISSUED.

New stock can now be ordered AUTOMATICALY, as computers are now used in stock control.

On the other hand the REPUTATION of the suppliers is very important to the organisation.

BAR codes have also improved businesses in terms of efficiency to manage items as they are getting scanned at the checkout, and then deleted from the RECORED STOCK level.

Managers have in addition benefited as they can verify stock easily.

by Int 2 Pupils, Saint Roch's Secondary

Just-in-Time

2006-12-07T04:47:00.000-08:00

Just in Time Production

Just In Time (JIT) is a method of stock control. This involves stocks being delivered just before they are needed.

It is a Japanese management philosophy. It was first developed and perfected within the Toyota manufacturing plants. Toyota realised that JIT would only be successful if every individual within the organisation was involved and committed to it.

JIT has been used to strengthen the businesses competitiveness.

ADVANTAGES

1. Can improve cash flow, as a lot of money is not being tied up in stock.

2. Reduces waste, as the stock will not deteriorate, as it will be getting uses straight away.

3. Improves product quality.

DISADVANTAGES

1. Businesses need very reliable suppliers.

2. Stock may not arrive on time.

3. The business may lose large orders if not able to fulfill demand.

by Int 2 Pupils, Saint Roch's Secondary

Stock and Stock Levels

2006-12-07T04:37:00.000-08:00

Stock

Stock can be three different forms: raw materials, work-in-progress, and finished goods, which will be waiting to be sent of to customers.

Stock Levels

Stock can be done manually and also be done through a computerised system. You can record it electronically using spreadsheet or a database so it’s easier to record if you want to change the information.

Maximum Stock Level

This permits the stock level for activities to go without interruption but incurs the minimum cost for the level.

Minimum Stock Level

This ensures that there will be always stock available for production, allowing for ordering and delivery times.

Re-order Level

This is the level which new stock should be ordered. This usually woks out for the amount used per day plus lead time.

by Int 2 Pupils, Saint Roch's Secondary

Purchase of Materials

2006-12-07T03:16:00.000-08:00

PURCHASE OF MATERIALS

The purchasing department of the operations function is about getting and buying the materials and other resources used in the Production Process. This Department must buy the amount of materials they will need and other resources that is needed within a time limit. Before the production takes place they need to have every material needed. The most important part of purchasing is sitting down with all the managers and company employees and try and find a suitable supplier so they can buy the cheapest materials. What the company looks for in suppliers is

1. The suppliers are reliable.

2. Can deliver the correct amount and also deliver on time.

3. The cheapest prices and they will not get over charged.

After the Purchase of Materials department have made their decision on whom the would like their suppliers to be they know have to order in their stock so they can start to make the product. The four main issues the need to look for is:

1. Stock of raw materials that are available as soon as possible.

2. Duration of time it is going to take for the suppliers to deliver the order and also future orders if they decide to keep this supplier

3. The likely amount of raw materials that is needed for this pacific product

4. The space which is needed and the cost to store it.

Once these issues have been considered. The following should be taken into account:

1. Quality – how much you want of the materials
2. Quantity – can the supplier deliver the stock wanted
3. Time – Can the suppliers confirm a time and date for the product to be here.
4. Dependability – how dependable the suppliers are
5. Price - Try and get the lowest price for the stock and ask for discounts
6. Location - are there additional charges for the insurance or delivery

Firms must use the correct mix of the above when deciding on a supplier. This is known as the PURCHASING MIX.

by Int 2 Pupils, Saint Roch's Secondary