4. • To ensure continuous supply of materials.
• To ensure uninterrupted production process.
• To minimize the risks and losses incurred due to
shortage of inventory.
• To ensure better customer services
• Avoiding of stock out danger.
6. • Just-in-Time Method
• Materials Requirement Planning
• Days Sales of Inventory
• Economic Order Quantity
7. TECHNIQUES OF
INVENTORY CONTROL
Traditional Techniques
• Inventory Control Ratios
• Two Bin System
• Perpetual Inventory System
• Periodic Inventory System
Modern Techniques
• Economic Order Quantity
• Re-order Point
• Fixing Stocks Levels
• Selective Inventory Control
8. Forecasting
- is a process of making prediction, projection, or
estimates of some future activity, event, or
occurrence.
- it refers to a planning tool that helps management
in its attempts to cope with the uncertainty of the
future.
Simply, “forecasting is a technique that uses historical
data as inputs to make informed estimates that are
predictive in determining the direction of future
trends.”
9. • It is strictly concerned with the future events only.
• It analysis the probability of a future events or
transactions occurring or happening.
• It involves analysis of data from the past and the
present.
• It uses scientific techniques and methods to make
such forecasts.
• It also involves certain guesswork and observations.
10. •
•
•
• Gather and analyze relevant data.
• Prepare the forecast.
• Monitor the forecast.
12. DIFFERENT METHODS OF
FORECASTING:
Qualitative Method
• this method is based on
judgments, opinions, intuition,
emotion, or personal
experiences and are subjective
in nature.
Quantitative Method
• this method is based on
mathematical models and are
objective in nature.
13. QUALITATIVE METHODS
EXECUTIVE
OPINION
Approach in which a
group of managers
meet and collectively
develop a forecast.
MARKET
SURVEY
Approach that uses
interviews and surveys
to judge preferences
of customers and to
assess demand.
SALES FORCE
COMPOSITE
Approach in which
each salesperson
estimates sales in
his or her region.
DELPHI
METHOD
Approach in which
consensus agreement
is reached among a
group of experts.
14. • it looks at the past
patterns of data and
attempt to predict
future based upon the
underlying patterns
that are obtained from
those data.
• it assumes that the
variable that is being
forecasted is associated
with other variables The
predictions are made
based on these
associations.
15. • Naïve – uses last period’s actual value as a forecast.
Forecast= Actual Sales last period
• Simple Mean (Average) - uses an average of all value
as a forecast.
F=∑(Actual Sales)/n
• Simple Moving Average – uses an average of a
specified number of the most recent observation, with
each observation receiving the same emphasis(weight).
SMA = ∑(sales)/n
16. • Weighted Moving Average – uses an average of a
specified number of the most recent observations, with
each observation receiving different emphasis(weight).
*if the weights given = 1
WMA= ∑[(w)(sales)]
*if the weights given is not equal to 1, then, it must be divided
by the summation of weights given
17. PATTERNS PRESENT
IN A TIME SERIES
• Trend – data exhibits a steady growth or decline over time.
• Seasonality - data exhibits upward and downward swings
in a short to intermediate time (most notably during a
year).
• Cycles – data exhibits upward and downward swings in
over a long time frame.
• Random Variations – erratic and unpredictable variations
in the data over time with no discernible pattern.
19. TWO BASIC STEPS IN
DESIGNING A PRODUCT
Functional Design
• decisions are made on
dimensions, materials to be
used, type of final finish
required for appearance and so
on
Production Design
• in the production design stage,
the designer considers
introduction of modifications
and new concepts into the
product to make it more
suitable for production
20. Features of a Good
Product Design Quality
• Standardized
• Maintainability
• Cost effectiveness
3-Pillars of Design
Management
• Design
• Strategy
• Demand Generation
21. Process Planning
• is concerned with planning the
conversion or transformation
processes needed to convert
the materials into finished
products
Process and
Operations design
• provide information on what is
required to effectively utilize the
existing equipment and to
determine what new equipment
and machinery would be required
23. QUALITATIVE METHODS
Service Design
•is strategic choice
which determines the
nature and based on a
focus of the service and
its market target
Service System (CSS:
Customer Service
System)
•is based on a strategic
choice which
determines the nature
and focus of the service
and its market target
Service Delivery
System
•the facilities,
processes, and skills
needed to provide a
service
Product
Bundle
•the combination of
goods and services
provided to a customer
24. FOUR KEY ELEMENTS OF
SERVICE DELIVERY SYSTEM
Service Culture
•built on elements of
leadership principles,
norms work habits, and
vision, mission and
values
Service Quality
•includes strategies,
processes and
performance
management systems
Employment
Engagement
•includes employee
attitude activities,
purpose driven
leadership and HR
processes
Customer
Experience
•includes elements of
customer intelligence,
account management
and continuous
improvements
25. • quality is a measure of customer satisfaction with a
product or service
• a method to transform qualitative user demands into
quantitative parameters, to deploy the functions forming
quality, and to deploy methods for achieving the design
quality into subsystems and components parts, and
ultimately to specific elements of the manufacturing
process
26. QFD: Most Important Product
/Service Attributes or
Qualities
The house quality function provides:
• A requirements planning capability
• A tool for graphic and integrated thinking
• A means to capture and preserve the engineering thought
process
• A means to communicate the thought process to new
members of the QFD team
• A means to inform management regarding inconsistencies
between requirements risks, and needs of the customer
27. • Quality Deployment
• Function Deployment
• Product Concept
Planning
• Product Development
and Specification
• Manufacturing
Processes and
Production Tools
• Production of Products
• Matrix Diagram or
House of Quality
28. •Increased likelihood of success when management
commits to adopting formal methodologies, setting
clear targets and providing employee training
29. •involves
eliminating the
cause so that
the problem
does not occur
•a framework for
problem solving and
improvement activities
•has four basic steps:
1. Plan 3. Study
2. Do 4. Act
•a systematic approach to
improve a process
•goals include increasing
customer satisfaction,
achieving higher quality,
reducing waste, reducing cost,
increasing productivity, and
reducing processing time
