Nowadays, manufacturing companies have to deal with challenges such as high product varieties, unpredicted demand patterns, high customer’s lead time, large numbers of components with high lead times and usage rate and greatly reduced product lifecycles in order to gain competitive advantages. In order to manage the challenges properly, effective materials and manufacturing resources management and control which involve the management of variety, flexibility of suppliers and a responsive Master Production Scheduling system are required.
The manufacturing systems are the crucial criteria of realization to produce different kinds of productions. The adopted policy of management will be different based on whether the product is common or specific.. When a product is defined properly and developed, it will belong to “on catalogue” products. The manufacturing is done according to Make to order (MTO), Make to stock (MTS), Assemble to order (ATO) or Engineer to order (ETO) environments. The descriptions for the four manufacturing environments
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Each customer order results in a unique set of part numbers, bills of material, and routings. ETO environments are the slowest to fulfill because time is required not only to build the product, but to custom design it to meet the customer's unique requirements.
From the figure below, it can be concluded that ETO takes the longest delivery lead time as there are a lot of processes such as design, planning, manufacturing, sub-assembly and final assembly are involved while ATO takes the shortest delivery lead time.
Figure 1: Manufacturing strategies and their effect on the delivery lead
Manufacturing – within a business the manufacturing department works alongside several other departments such as marketing and purchasing to make sure that they manufacture products efficiently. Manufacturing is generally a long process as detailed designs of products have to be assembled before construction can begin. Manufacturing varies can depend on the organisation type large companies are likely to manufacture products themselves, and they tend to do this on a large scale in order to be able to buy resources in bulk in order to save a substantial amount of money. Small businesses tend to design their own products but may not have the ability to manufacture; therefore they usually hire other companies to manufacture for them - this can be quite costly, so they commonly perform manufacturing on a large scale
In order to manufacture
Jamba Juice was the vision of Kirk Perron who was into living a healthy lifestyle, in 1990 after his workout while enjoying his smoothie he came up with the idea to start this business venture. Next, he went to the bank in hopes of getting the needed funds for his startup venture. However, the banks refused to loan him the funds to start his venture. Then Kirk Perron decided to ask his mother for a loan to get him started she agreed.
The introduction of Costco, an extremely large business to a semi rural area will have both pros and cons for not only the area but also Costco itself. These issues include • Political Implications • Environmental Implications • Social implications • Technological Implications • Legal Implications • Economic Implications Political – Political implications on the local community would obviously include legislation and regulation. For example the products they are able to sell and also the local politicians will campaign for or against it. The government controls the sale of certain products; this means that for Costco to want to sell particular products such as alcohol there is legislation that they must abide by. Costco will also have to
Unit 7 - Enterprise Resource Planning (ERP) 7.1 Introduction Today, in this competitive business environment, there is a need for better communication between manufacturers and customers, and that forms a requirement for a better interface between them. It basically means that in order to tailor with the needs of a customer, an enterprise should understand the requirements of the customer and be closely linked to the suppliers and customers. The enterprise also needs to provide better delivery performances. In order to achieve that, it is important to decrease lead times within the enterprise, and increase efficiency. The manufacturers need efficient planning and control systems that help in eminent synchronization and planning.
Currently the assembly lines that are being used are best according to the industry standards. The distributer lies next in the value chain. Its main purpose is to meet the dealers demand on time and provide seem less transfer of a manufactured car unit from the plant to the shed and warehouse, and from the shed and warehouse to the specific dealer whenever
It is imperative to understand the current conditions of what materials are candidates for return, compared to the performance level of returns achieved each day. The delta between the identified material returns and the actual returns will provide information for goal setting. Additionally, with the transfer of raw materials into the warehouse, there must be a transaction to receive it into inventory and distribute it to the appropriate location. At that point, the process will be complete for the appropriate accounting of the materials, creating availability for consumption at the next production demand. The data collected will be influential in developing a robust procedure for each assembly line to follow in a consistent manner.
Arthur Blank and Bernie Marcus develop the concept for The Home Depot in 1978. “Three Home Depot stores in Atlanta the following year. The 60,000-square-foot warehouses dwarfed the competition with more items than any other hardware store.” (The Home Depot Our History) Home Depot sells a huge assortment of building substances, domestic development merchandise and lawn and garden merchandise and offers a number of services.
Accountable Care Organizations and Physician Joint Ventures Lately, you’ve seen multi-collaborations of healthcare organizations that have joined an alliance to provide exceptional healthcare and to remain relevant to competitors. Since the early 1990s, the alignment or integration of the physician-hospital concept has been a perception that has come to fruition; today, there are various models of physician integration throughout the hospital and healthcare network (Harrison, p. 179, 2016). The physician integration model is a series of joint ventures which are linked through corresponding goals, for example, primary care clinics, employed physicians, and independent and affiliated medical groups (Harrison, p.190, 2016).
In mid-1970’s, Copeland Corporation absorbed the above characteristics and implemented it. At that time, Matt Diggs the new CEO appointed has a vision to transform company’s approach to manufacturing. It was noticed that previously all the parts are machined and assembled in the single space or facility. As a result of these tend to increase the costs and quality was marginal. To overcome the complexity Matt Diggs came up with the multifunctional team with a task of designing a “focused factory” with an aim to narrow, newly developed product line.
Throughout the years, advances in technology have enabled certain factories to have fully automated production lines. This ultimately allows a uniform production time for each product being made, and eliminates
Here 70% of our business is done with military so in military terms logistics means the organization of moving, housing and supplying troops and equipment’s. No doubt logistics is an important activity as there is a process for doing a work and there must be proper coordination and cooperation. Lack of proper coordination means, high chance of getting errors in work. This case analysis focus on providing the recommendations to the top management to make sure their activities are going smoothly in the market and they can be ahead from their competitors in this competitive world. In easy words, the organization wants to improve their delivery to their customers.
Process Strategies The process strategies, for such a large manufacturing company, would need to be varied. The production process type would be determined by the product life cycle stage at that time (Thayer 2004).Product life cycles for items such as smartphones and tablets do not generally follow the standard life cycle stages. The maturity stage can be interrupted by discontinuation or irrelevance of a technology, which recommences the cycle (Giachetti & Marchi 2010). Incidentally, during the product life cycle of these items, a cyclic improvement of both process and product is required to stay in contact with market changes.
Coordinate with customer relationship management to identify customer articulated needs 2. Select materials and suppliers in conjunction with procurement 3. Develop production technology in manufacturing flow to manufacture and integrate in to the best supply chain flow for the product/market combination G. Manufacturing Flow Management The manufacturing process produces and supplies products to the distribution channels based on past forecasts. The production process has to be flexible to respond to market changes and Mass Customization must absorb.