Inventory Management , MRP, JIT and SCM
Use of Inventory
Types of Costs
Inventory Management System
Inputs to MRP
Master production schedule(MPS)
BOM example
Inventory Status File
Just-in-time / Toyota Production System
Concept of JIT
Supply Chain Management
Kaizen
Kanban
Kattareeya Prompreing
白雅欣
iD:DA61G209
(Student in Ph.D. Business and Management, College Business, STUST
email:da61g209@stust.edu.tw
: katt.rmutl@gmail.com
INVENTORY MODELS
One basic problem of
inventory management is to find
out the order quantity so that it
is most economical from overall operational point of view. Here that problem lies in minimizing the two conflicting costs, i.e. ordering cost and inventory carrying cost.
Inventory models help to find out the order quantity which minimizes the total costs(sum of ordering costs and inventory carrying costs).
Kattareeya Prompreing
白雅欣
iD:DA61G209
(Student in Ph.D. Business and Management, College Business, STUST
email:da61g209@stust.edu.tw
: katt.rmutl@gmail.com
INVENTORY MODELS
One basic problem of
inventory management is to find
out the order quantity so that it
is most economical from overall operational point of view. Here that problem lies in minimizing the two conflicting costs, i.e. ordering cost and inventory carrying cost.
Inventory models help to find out the order quantity which minimizes the total costs(sum of ordering costs and inventory carrying costs).
Concept of inventory, need for inventory, types of inventory, Seasonal, Decoupling, Cyclic, Pipeline, Safety, Implications of Inventory Control Methods Inventory Costs: Concept & Behavior of Ordering cost, Carrying cost & Shortage cost Basic EOQ Model & EOQ with Discount
Warehouse Operations and Inventory Management Thomas Tanel
Companies that make the best use of the basic principles of planning and managing warehouse operations and inventory management have a competitive advantage. Organizations that lack warehouse strategic planning and inventory operational excellence lose profits, market share, cost advantages, and market leadership.
Traditional Supply Chain and Logistics channels are indeed changing. As organizations move from mass production and mass distribution to mass customization, creative approaches are needed in the management of warehousing and inventory. The challenge is always present, because different customers may demand different levels of service. Demand often cannot be forecasted, especially if one must deliver customized products or services exactly where the customer needs them.
Businesses today must understand that they are competing on the basis of time more than on any other factor. The rigors of supply chain management require that you take action to meet your customers’ demand for faster, more frequent, and more reliable deliveries. Your suppliers need to meet increasingly precise inbound schedules. Tomorrow’s customers are more likely to be in another country or continent than they are likely to be from across town, in another state, or in another province.
With a proven inventory management system and an A-B-C Analysis, you can transform your inventory into a proactive force that lowers your inventory investment, reduces carrying costs, boosts confidence in physical supply and distribution service levels, and increases customer and user satisfaction. From a storage and distribution perspective, you, as overseer of the supply management process, should also know how the warehousing layout design criteria and the space and storage schemes affect your material flow, service levels, computerization, and technology options.
1. Supply Chain Integration
2. Benefits of Supply Chain Integration
3. Push System
4. Pull System
5. Push vs Pull
6. Integration of Push and Pull Strategy
7. Lead Time and its Impact
8.Demand-Driven Strategies
Concept of inventory, need for inventory, types of inventory, Seasonal, Decoupling, Cyclic, Pipeline, Safety, Implications of Inventory Control Methods Inventory Costs: Concept & Behavior of Ordering cost, Carrying cost & Shortage cost Basic EOQ Model & EOQ with Discount
Warehouse Operations and Inventory Management Thomas Tanel
Companies that make the best use of the basic principles of planning and managing warehouse operations and inventory management have a competitive advantage. Organizations that lack warehouse strategic planning and inventory operational excellence lose profits, market share, cost advantages, and market leadership.
Traditional Supply Chain and Logistics channels are indeed changing. As organizations move from mass production and mass distribution to mass customization, creative approaches are needed in the management of warehousing and inventory. The challenge is always present, because different customers may demand different levels of service. Demand often cannot be forecasted, especially if one must deliver customized products or services exactly where the customer needs them.
Businesses today must understand that they are competing on the basis of time more than on any other factor. The rigors of supply chain management require that you take action to meet your customers’ demand for faster, more frequent, and more reliable deliveries. Your suppliers need to meet increasingly precise inbound schedules. Tomorrow’s customers are more likely to be in another country or continent than they are likely to be from across town, in another state, or in another province.
With a proven inventory management system and an A-B-C Analysis, you can transform your inventory into a proactive force that lowers your inventory investment, reduces carrying costs, boosts confidence in physical supply and distribution service levels, and increases customer and user satisfaction. From a storage and distribution perspective, you, as overseer of the supply management process, should also know how the warehousing layout design criteria and the space and storage schemes affect your material flow, service levels, computerization, and technology options.
1. Supply Chain Integration
2. Benefits of Supply Chain Integration
3. Push System
4. Pull System
5. Push vs Pull
6. Integration of Push and Pull Strategy
7. Lead Time and its Impact
8.Demand-Driven Strategies
Nfra ERP for Construction Industry is integrated with suitable modules that helps the management to get data from the sites on real-time basis. Nfra being a cloud-based ERP for Construction Industry, there is no need of expensive hardware installations. What you need at the site is a laptop computer or a PC with an Internet connection and your work is done.
eresource Nfra ERP deals with core functional areas such as Project Monitoring and Control, Sales Management, Tendering, Bill of Quantities, Purchase and Supplier Management, Onsite Engineers Portal, Material Management, Labour and Contractors Management, Accounts Management and Human Resource Management.
eresource Nfra helps capture and monitor all activities right from pre-execution stage to post execution. Management can access and manage onsite activities from anywhere at anytime.
WebXpress is an IT Solutions company offering services in the domain of Logistics. We have multiple number of IT solutions in our basket to cater
the growing requirements of the Logistics sector:
1. Transportation Management System
2. Fleet Management System
3. Warehouse Management System
4. E-Commerce Solution
5. Business Intelligence
6. Mobile Solutions
7. Finance and Accounting System
WebXpress has a large customer base, to name a few, Linfox, Agility, Safexpress, ColdEX, Kelvin, Future Supply Chains, DTDC, Surat Goods Transport, Agarwal Packers and Movers and many more.
If you want to know more about our company please visit
www.webxpress.in
Stores management is part of the overall function of materials management. In order, therefore, to understand the function of the former it is desirable to have a clear understanding of what materials management stands for.
According to Alford and Beatty “storekeeping is that aspect of material control concerned with the physical storage of goods.” In other words, storekeeping relates to art of preserving raw materials, work-in-progress and finished goods in the stores.
Material Resource Planning (MRP)
Objectives of MRP
Fundamental concepts of MRP
Functions of MRP
Inputs to MRP
Master production schedule(MPS)
Bill of Materials (BOM)
Inventory Status File
MRP outputs
Learning Curve
Negotiating
Production Planning and Control (Operations Management)Manu Alias
A presentation on operations management. The contents are, Production management and control - Meaning, Definition, functions, Objectives, Stages, Importance and limitations; Master Production Schedule (MPS) - Meaning, Objectives and fuctions.
Internet threats are difficult to defend.
Malware defensive tools use more of ‘Botnets’
Fighting malware is asymmetric,favouring attackers.
P2P botnets are used as its more resilent
Using re-engineering existing malware, defenders can build antidotes to eradicate spreading functions.
Antidote can be used to monitor on-site activity of the malwares.
Malware families such as Hlux, Sality, Zeus would be most effective approach.
Green Supply Chain in Automobile Industry
Green SCM v/s Conventional
Life Cycle Thinking
BENEFITS OF GREEN SCM
Pollution Prevention Hierarchy
Green Back-end Supply Chain of Maruti India
Green Procurement Guidelines Tier 1
Barriers to implement GSCM in Indian Automobile industry
Comparison of Lean Manufacturing with GSCM
A Not-for-Profit Medical Research Center
Project Objective
Project Assumptions
Technical requirements
Activities to Complete
Project Timelines
Project Priority Matrix
Work Breakdown Structure
Responsibility matrix
Plans are only good intentions, unless they immediately degenerate into Hard work
Scheduling
Routing
Prioritizing
Dispatching
What is Scheduling ?
Forward Scheduling
Backward Scheduling
Finite LOADING
infinite loading
Schedule Gantt Chart
Line balancing
GOAL AND OBJECTIVE
LINE BALANCING PROCEDURE
Strategies and Costs
as early as possible
as last as possible
Purchasing Management
Principles of Purchasing Management OR (8 R'S)
Functions of Purchasing Management
Negotiating
Value Engineering
VALUE ANALYSIS
Receive Purchase Request
Supplier selection
Payment Authorization
Market research and Information
Selection of Source
Determination of Price and Availability
Follow Up
Production Planning and Control
Objective of PPC
Classification/Functions of PPC
Levels of PPC
Factors determining Production Planning Procedures
Production Planning System
Factors Determining PC procedures
Material Handling
Objectives of Materials Handling
Material Handling Principles
Storage Equipment
Belt Conveyor
Store Management
Objectives of store
Spare Part Management
Classification of Spare parts for stocking policy Analysis
Codification
Objectives of Codification
Standardization
Advantages of Standardization
Inventory Management
Use of Inventory
Types of Costs
ABC Analysis
VED Analysis
Economic Order Quantity (EOQ)
Types of Inventory Management System
Assumptions of EOQ
Basic Fixed Order Quantity Model (EOQ)
EOQ Curve
ABC and VED Classification
Function / Use of Inventory
Book review
It Happened in India
KISHORE BIYANI
Future Retail ,
Future Capital,
Future Brands,
Future Logistics,
Future Media.
Made in India
*REWRITE RULES, RETAIN VALUES*
Built from scratch
Nokia
Microsoft
Success
Failure
Merger
Nokia : History
Nokia Introduction
WHEN DID NOKIA ENTER INDIA?
EARLY STAGES OF SMARTPHONE IN INDIA
ANDROID ENTERS INDIA
Range Of Products
SWOT ANALYSIS of Nokia
Decline of NOKIA
What was wrong in the company’s reaction?
Wrong decisions
What did Stephen Elop do wrong?
The Consumer
Research Process
The Importance of the Consumer
Research Process
Largely Influenced by Psychology, sociology, and anthropology
Developing Research Objectives
Secondary Data
Designing Primary research
Qualitative Collection Method
Depth Interview
Market segmentation
What Is Market Segmentation?
Bases for Segmentation
Geographic
Demographic
Psychological
Psychographic
Sociocultural
Criteria for Effective Targeting of Segments
Implementing Segmentation Strategies
Family Life Cycle Advertising
Use-Related Segmentation
Criteria for Effective Targeting of Market Segments
Implementing Segmentation Strategies
Targeting
Psychographic Segmentation
Plant Layout
Facility Layout Planning
Product Layout
Process Layout
Fixed position layout
Cellular layout
Factors affecting location plant
Merit and Demerits
Plant Layout Principles
An Assembly line
U shaped assembly line
Assembly line balancing
Cellular layout and Group Technology
Facility Location Planning
What is facility location ?
Operations Strategies for Multiple Facilities
Factors affecting Facility Location Planning
Dimensional Analysis
Brown and Gibson Model for Site location
Locating Foreign Operations Facilities
Production and Operations Management
Product Vs Service
Concept of Production and OM
Functions /Scope of POM
Operation Strategy
Transformation Process
Product Design & Product Process
History of POM
Issues in POM
Setting Product Strategy
What is a Product?
Components of the Market Offering
Durability and Tangibility
Use
Consumer Goods Classification
The Product Hierarchy (using life insurance example)
Product Systems and Mixes
Product Line Analysis
Packaging , labeling warranties
Packaging Objectives
Functions of Labels
Crafting the Brand Positioning
Developing & Establishing a Brand Positioning
Points-of-difference
Points-of-parity
Brand Mantras
Communicating Category Membership
Consumer Desirability Criteria for PODs
Deliverability Criteria for PODs
Differentiation Strategies
Positioning and Branding a Small Business
Identifying Market Segments and Targets
Effective Targeting Requires
Four levels of Micromarketing
What is a Market Segment?
Flexible Marketing Offerings
Preference Segments
Segmenting Consumer Markets
Behavioral Segmentation
The Brand Funnel Illustrates Variations in the Buyer-Readiness Stage
Loyalty Status
Segmenting for Business Markets
Steps in Segmentation Process
Effective Segmentation Criteria
Analyzing Business Markets
What is Organizational Buying?
Top Business Marketing Challenges
Characteristics of Business Markets
Buying Situation
Participants in Business Buying ProcessThe Buying Center
Supplier SearchForms of Electronic Marketplaces
Methods for Researching Customer Value
Establishing Corporate Trust and Credibility
Factors Affecting Buyer-Supplier Relationships
What is Opportunism?
Analyzing Consumer Markets
What Influences Consumer Behavior?
What is Culture?
Subcultures
Fast Facts About American Culture
Social Classes
Characteristics of Social Classes
Reference Groups
Roles and Status
Personal Factors
The Family Life Cycle
Lifestyle Influences
Model of Consumer Behavior
Motivation
Maslow’s Hierarchy of Needs
Consumer Buying Process
Problem Recognition
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
2. Inventory Management
Inventory is stock in firm for future use
In Manufacturing organization have inventories of raw materials,
components, tools and equipment etc.
In Service organization such as banks, financial organization ,
hospitals. in hospital have inventories of medical equipment such as
glucose bottle etc.
Inventory is maintained by organization to avoid stock out of item.
Stock Out of any items results
Loss of potential profit
Loss of goodwill of customer
3. Continue…
Low level of inventory and High level of inventory
Inventory of an item should neither be high or low. It should just
optimal
How much size of order placed to suppliers?
When should order placed ?
4. Use of Inventory
1. Anticipation Inventory : to satisfied expected customer
2. Cycle Stock : Use EOQ , It will Min total cost of inventory
3. Safety or buffer stock : to avoid stock out
4. Inventory for Quantity discount / future price increases
5. Seasonal Inventory
7. Inventory Management System
Dependent inventory is defined as the inventory of items that
are the components , parts, sub assemblies of Finished Goods.
Independent demand inventory is defined as inventory of
finished goods .
8. It is a planning technique which converts master production schedule
of end products into detailed schedule for raw materials and parts
used in those end products.
MPS is the plan that a company has developed for production,
inventory, staffing, etc.
MRP is a means for determining the number of parts, components,
and materials needed to produce a product
MRP is a production planning, scheduling, and inventory control
system used to manage manufacturing processes.
Material Resource Planning (MRP)
9. Inventory reduction:
Determines how many components are needed and when in order to
meet MASTER PRODUCTION SCHEDULE.
Reduction in production and delivery lead times.
It helps to meet delivery deadlines by coordinating inventories,
procurement and production decision
Realistic commitments
Improves customer satisfaction.
Objectives of MRP
11. Based on actual customer orders and predicted demand.
Indicates when each ordered item will be produced in coming weeks,
and in how much quantity.
It is a plan specifying timing and quantity of production for each end
item.
MPS inputs come from sales and marketing .
Master production schedule(MPS)
13. A listing of all of the raw materials, parts, subassemblies, and
assemblies needed to produce one unit of a product .
BOM Shows way a finished product or parent item is put together
from individual components.
Bill of Materials (BOM)
16. Detailed information regarding the quantity of each item, available
in hand, on order to be released, for use in various time periods.
MRP system using inventory master file is used to determine the
quantity of material available for use in a given period.
If sufficient items not available , the system includes the item on the
planned order release report.
Inventory Status File
17. 1. Work orders / Planned orders report
2. Order Release
3. Action Notices or Rescheduling Notices or order change
MRP outputs
18. Planned orders report
It helpful in preparing for the funds required for payment to
suppliers in future according to dates and order size.
Ex. January is current month and finance manager wants to see
what quantities of raw material purchases have to be made in
March.
Order Release Report
It gives information about planned order to be released on presentr
date. It helps purchase managers to release purchase order (PO) to
suppliers.
Authorization for the execution of planned orders.
19. Order change report
Open order are those which have been placed in the past,
and supplier of items in preparing for supplier to be made in
the company.
which orders are to be released, revised and canceled
during the current time period.
20. Keep inventory levels to a minimum.
Keeps track of inventory that is used.
Tracks the amount of material that is required.
Set safety stock levels for emergencies.
Plan for future needs of raw materials or components.
Benefits
21. Inaccurate information can result in mis-planning , overstock,
under-stock, or lack of appropriate resources.
The inaccurate master schedule will provide wrong lengths of
time for production . Hence affecting planning.
MRP systems can be costly and time-consuming to set up
Drawbacks
22. Just-in-time / Toyota Production System
“ A production system to produce the kind of units needed, at the
time needed and in the quantities needed”
“A Philosophy of manufacturing based on planned elimination of all
waste and continues improvement of productivity”
JIT was originally developed by Toyota Motor company in Japan
Producing quantity of units that is needed, no more, no less
Producing them on the date and time required, not before not after
23. Concept of JIT
Three fundamental concept of JIT
1. Elimination of waste and variability
2. Pull versus Pull system
3. Manufacturing cycle time
24. 1. Elimination of waste and variability
“Anything that does not add value” is described as waste in
production of G & S.
Products being stored, inspected or delayed, products waiting in
queue and defective product do not add value hence they are 100%
waste
JIT Speeds throughput (converted from raw materials into finished
goods) allowing faster delivery and reducing work in process.
25. 2) Pull Vs Push system
The pull inventory control system begins with a customer's order. With this
strategy, companies only make enough product to fulfil customer's orders.
One advantage to the system is that there will be no excess of inventory that needs
to be stored, thus reducing inventory levels and the cost of carrying and storing
goods. Ex. JIT (The goal is to keep inventory levels to a minimum by only having
enough inventory, not more or less, to meet customer demand)
The push system of inventory control involves forecasting inventory needs to meet
customer demand. Companies must predict which products customers will
purchase along with determining what quantity of goods will be purchased.
The company will in turn produce enough product to meet the forecast demand and
sell, or push, the goods to the consumer. Ex. MRP (it combines the calculations for
financial, operations and logistics planning.)
26. 3) Manufacturing cycle time
It is time between the arrival of raw material and shipping
of finished products.
JIT helps to reduce the manufacturing cycle time.
27. Overview of JIT Manufacturing
Inventory reduction : JIT is system for reducing inventory levels at all
stages of production
Quality Management: JIT provide procedure for improving both
quality within the firm
Lead time reduction: With JIT, lead time components such as Set up
and move times are significantly reduced.
Continuous Improvement: JIT system, existing problems are
corrected and new problem identifies
28. Characteristics of JIT
JIT system focus on reducing inefficiency and unproductive time in
production process to improve continuously the process and quality.
1. Pull method of material flow
2. Constantly High Quality
3. Uniform Workstation Loads
4. Standardized components and work methods
5. Close Supplier Ties
6. Flexible workforce
7. Automated Production
29. Elements of JIT
1. Eliminating waste
2. Enforced Problem Solving
3. Continuous Improvement / Kaizen
4. Involvement of People
5. Total Quality Management
30. Benefits of JIT
Lower Warehouse Costs (Storing excess inventory can cost a lot
of money)
Better Customer Satisfaction (model can allow companies to
serve their customers faster and more efficiently)
Reduce Waste
Improved Supplier Relationships
31. Drawback of JIT
A supplier that does not deliver goods to the company exactly on time
An investment should be made in information technology to link the
computer systems of the company and its suppliers,
A company may not be able to immediately meet the requirements of
a massive and unexpected order
Risk of running out of stock
More Planning required
33. Supply Chain Management
The supply chain involved in the transformation of goods from the
raw material stage to the final stage, when the goods and services
reach the end customer.
“Supply chain management involves planning, design and control of
flow of material, information and finance along the supply chain to
deliver superior value to the end customer in an effective and
efficient manner”
Management of material, funds and information flows both in and
between facilities such as vendors, manufacturing and assembly
plants and distribution centers.
34. Supply Chain Stages
A typical supply chain may involve a variety of stages.
These supply chain stages include: Customers, Retailers,
Wholesalers/distributors, Manufacturers, Raw material suppliers.
Each stage in a supply chain is connected through the flow of products,
information, and funds. These flows often occur in both directions and may
be managed by one of the stages or an intermediary.
Supplier Manufacturer Distributor
RetailerCustomer
35. Overview of SCM
Basic purpose of SCM iis to control inventory by managing the flow of
material.
In manufacturing organisation, there is a inward flow of input material
such as raw materials. The rate of production depends on the demand
for finished goods.
Managing flow of material is common to organization in every
segment of the economy: manufactures, wholesalers, retailers,
governments departments hospitals etc
That’s why Supply chain management is becoming a key competitive
weapon.
36. Continue…
A supply chain consists of all stages involved, directly or indirectly in fulfilling
a customer’s request.
It not only include manufacturer and supplier but also transports,
warehouses, retails etc.
Supply chain is dynamic (Active) and involve the constant flow of
information, product and funds between different stages.
Each stage of the supply chain performs different processes and interact
with other stages of supply chain.
Primary purpose of the existence of any supply chain is to satisfy customer
needs.
Supply Chain activities begin with customer order and end when a satisfies
customer has paid for his purchase.
37. Objective of Supply Chain
To maximize the overall value generated.
To achieve maximum Supply Chain profitability.
To reduce the supply chain cost to minimum possible level.
Satisfy customer service requirements
Face Global Competition
38. Kaizen
Kaizen (改善), Japanese for "improvement“
kaizen refers to activities that continuously improve all functions and
involve all employees from the CEO to the assembly line workers.
By improving standardized activities and processes, kaizen aims to
eliminate waste
Kaizen is a daily process, the purpose of which goes beyond simple
productivity improvement.
The Toyota Production System is known for kaizen, where all line
personnel are expected to stop their moving production line in case of
any abnormality
39. Kanban
Kanban (signboard) ( か ん ば ん ) is a scheduling system
for lean(elimination of waste ) and just-in-time (JIT) production
Kanban cards are a key component of kanban and they signal the
need to move materials within a production facility or to move
materials from an outside supplier into the production facility.
In the last few years, systems sending kanban signals electronically
have become more widespread.
In various software systems, kanban is used for signalling demand to
suppliers through email notifications.
Electronic kanban help to eliminate common problems such as
manual entry errors and lost cards
40. Benefits of Kanban
Highly visible systems
Simple, effective, and inexpensive
Reduces inventory and eliminates stock-outs
Improves the quality of service
Improves lead times
41. Lean manufacturing
Lean manufacturing or lean production, is a systematic
method for the elimination of waste (Muda) within a
manufacturing system.
Lean also takes into account waste created through
overburden ("Muri") and waste created through
unevenness in work loads ("Mura").
Lean manufacturing is a management philosophy derived
45. Assignments
Que 1) What do you mean by JIT? Explain basic elements of JIT.
OR
Explain the benefits of JIT with a schematic Diagram
OR
Depict your understanding for “Just in Time” manufacturing system.
Que.2) Explain the MRP System in detail with inputs of MRP.
Que.3) What is supply chain management? How it is important for
organization?
46. "I don't know the key to
success,
but the key to failure is trying
to please everyone."