POM is important function where vast majority of firm's workers, capital assets & expenses reside, and is responsible for production, Service & Quality of the products. However apart from their individual objectives, a coordinated effort between all the 3 business functions is a must, to achieve overall organization's business growth and profitability.
Any company should have a comprehensive Business strategy, that is supported by a Marketing strategy, Operations strategy, and a Financial strategy. All three strategies should also support each other. While excellent marketing skills need to be in place, however they are of little use if there are no world class operations management capabilities also in place to support.
[...] However many are moving towards 100% inspection & testing of final products, which is becoming possible, due to economically available automated inspection & testing equipments Maintenance management : Equipments malfunction in mfg./service industry have direct impact on, Production capacity Production cost (due to increase in labor & material cost/unit, and maintenance dept. Budget) Product & Service quality Employee or Customer safety Customer Satisfaction (due to delivery delay) Hence there is a clear requirement of planned Equipment maintenance. To ensure better Maintenance management, a separate Maintenance department has evolved in the Organization. [...]
[...] Focus on Trainings, Workteams, Empowerment, Problem solving Total Quality Management Successful JIT manufacturing goes hand-in-hand with Organization wide TQM culture, and involvement of every one. Parallel Processing Wherever possible, for reducing the lead times. Focus elements of JIT manufacturing . Kanban Production Control System JIT is a pull system of production planning & control, in contrast to push system or MRP system, hence greatly reducing WIP inventory Use of Kanban Card No parts can be produced or moved without a kanban card, and also produced in exact quantities. [...]
[...] JIT Manufacturing : The primary elements of JIT in Manufacturing are - To have only the required inventory when needed (Raw materials, WIP & Finished goods) Operates on logic of “Pull production system” To improve quality to zero defects To reduce lead times by reducing set-up times, queue lengths, & lot sizes, and Finally to accomplish above things, at minimum cost. JIT Manufacturing Philosophy : JIT is used as a weapon in speeding market responsiveness, through all activities like Design, Quality, Mfg., and Fast delivery to the customers. [...]
[...] Eg., Methods-Time-Measurements Basic Motion Time (BMT) study, and a host of systems custom-designed for individual companies. Subjectively setting Labor standards Subjectively setting labor standards : Labor stds. may also be estimated subjectively. Eg., Labor stds. are determined using historical data. However this may not be too accurate, as no attempt to improve the work methods were done Supervisor estimates are also occasionally used. However the use of these methods are limited to situations, where more expensive techniques can not be justified. [...]
[...] Inventory Systems : The essential decisions in any Inventory Management are : Ordering quantity (Lot sizes), and Ordering Point There are different inventory systems used, to determine Order quantities and Order points : Fixed order quantity systems Fixed order period systems Hybrid inventory models Single period inventory model Fixed Order quantity systems : The concept of EOQ as seen earlier, is used in this system. In Fixed order quantity system, Same quantity is ordered every time, and the new order is triggered, when the inventory falls to a critical level. [...]
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