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Logistics and Supply Chain Practices

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  1. Introduction
  2. Critical Analysis
  3. Industry Examples
  4. Reasons why Mr. Shelton upset and the things that should be done to address his complaint
  5. A QI Plan for Presto Cleaner
  6. Organization and Leadership
  7. What lean production concepts can Laura apply in the above context? What challenges will she face?
  8. Conclusion

Lean thinking is essential to improve supply chain management. This is because lean thinking ensures things are done just as they should. As an example, Toyota has demonstrated superior results with regard to quality, cost and lead-time compared to most (if not all) of its competitors. This accomplishment has led to a widespread interest in the Toyota System of Production and its way of doing business. Subsequently, various reviews of "The Toyota Way" have been done. This has led to the characterization of lean production, which can now be seen as a generic description of the Production System at Toyota. Despite there being many, diverse perceptions of what exactly has led to Toyota's success, Toyota itself proposes that its system is based on considering the time from getting the client's orders to cash collection and shorten this lead-time by eradicating waste (Chiarini 2011).

Customer relationship is also a key are that organizations must address to improve their supply chain management. This is because the only way to guarantee increased sales is to have the consumers believe in the products of the organization. Money cannot buy this. In the retail industry, Wal-Mart is a classic example of exemplary customer relationship that led to its success. It founder, Walton, always had the customer in mind when designing business processes. For example, he came up with the idea of exploring and innovating new possibilities that will increase customer experiences and satisfaction, such as self-service, offering discounts, and employing staff who had to be friendly to the customers. Wal-Mart and any other successful company had to develop a system of a few really unique competences that help them build differentiated value for their chosen consumers.

[...] Services are offered in timely and coordinated manner. Quality Improvement Principles This refers to an orderly approach to evaluating services and refining them on a priority basis. The Presto Clean methodology to quality improvement is founded on the following principles: Customer Focused approach to services development Superior quality services Fact-based decisions Prevention over correction Continuous improvement Continuous QI Activities The activities have been developed and accepted in a systematic and organized manner by the Presto Cleaner leadership and are used throughout the organization. [...]


[...] Since she will only be in Beijing for a short period, she can build short term relations with suppliers based on competitive pricing. The relationship can be maintained through keeping an honest, strong communication line open. However, she may be faced by communication barriers if the suppliers are Chinese. The cultural differences may also make it challenging to establish and maintain relationships with suppliers in Beijing. Pursuing perfection this she can do by always abiding to the law of the land and providing over-value services to her customers. [...]


[...] This is the purpose of the QI Initiative. The model that Presto Cleaner adopted is PDCA (Known in other words as: Plan-Do-Check-Act). Plan - identifying initial opportunities for improvement Do adopting suggested solutions and implementing them Check - collecting data and to check if there is any progress Act - making the changes a repetitive part of the projected activity Appendix: QI Tools The following are some data analysis and presentation tools that will be used by Presto Cleaner in their Quality Improvement process. [...]


[...] Inventory management in this kind of organization also employs stringent accuracy. Many a times, the stocks in store vary with what is in the inventory. This scenario is highly avoided by food service companies to avoid potential loss or depletion in quality of the raw materials or ingredients. As such, the inventory is managed by extra staff that is hired specifically to manage the inventory. These staff also conducts cyclic counts either manually or by use of an automated system. [...]


[...] Critical Analysis Lean thinking is essential to improve supply chain management. This is because lean thinking ensures things are done just as they should. As an example, Toyota has demonstrated superior results with regard to quality, cost and lead-time compared to most (if not all) of its competitors. This accomplishment has led to a widespread interest in the Toyota System of Production and its way of doing business. Subsequently, various reviews of "The Toyota Way" have been done. This has led to the characterization of lean production, which can now be seen as a generic description of the Production System at Toyota. [...]

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