TRANSPORTATION MANAGEMENT
- Evaluate necessary items with regard to
KEY DRIVERS OF CHANGE IN TRANSPORT
MANAGEMENT
• Changes in work practices
• Changes in customer behavior
• Changes in technology
• Increasing or decreasing workloads
OM PROCESSES IN TRANSPORT
MANAGEMENT
• Forecasting
• Capacity planning
• Scheduling
• Managing inventory assuring quality
• Motivating and training employees
SIX SIGMA is a set of techniques and tools for
process improvement.
It was developed by Motorola in 1986,
coinciding with the Japanese asset price bubble
which is reflected in its terminology. Jack Welch
made it central to his business strategy at
General Electric in 1995. Today, it is used in
many industrial sectors.
• Reduce process cycle time
• Reduce pollution
• Reduce costs
• Increase profits
• Increase customer satisfaction
5S is the name of a workplace organization
method that uses a list of five Japanese words:
seiri, seiton, seiso, seiketsu, and shitsuke.
Transliterated or translated into English, they
all start with the letter “S”.
The list describes how to organize a work space
for efficiency and effectiveness.
1.Seiri (sort)
- Remove unnecessary items and dispose of
them properly
- Make work easier by eliminating obstacles
- Reduce chance of being disturbed with
unnecessary items
- Prevent accumulation of unnecessary items
dept/cost/other factors.
2. Seiton (straighten or streamline)
- Arrange all necessary items in order so they
can be easily picked for use
- Prevent loss and waste of time
- Make it easy to find and pick up necessary
items
- Ensure first-come-first-serve basis
- Make work flow smooth and easy
- Can also be translated as "set in order"
3. Seiso (shine)
- Clean your workplace completely
- Use cleaning as inspection
- Prevent machinery and equipment
deterioration
- Keep workplace safe and easy to work
- Can also be translated as "sweep"
4. Seiketsu (standardize)
- Maintain high standards of housekeeping and
workplace organization at all times
- Maintain cleanliness and orderliness
- Maintain everything in order and according to
its standard
5. Shitsuke (躾?, sustain)
- To keep in working order
- Also translates to "Self-Discipline" meaning
to do without being told
ISO 9000 a series of standards, developed and
published by the International Organization for
Standardization (ISO), that define, establish,
and maintain a quality assurance system for
manufacturing and service industries.[1][2] The
standards are available through national
standards bodies. ISO 9000 deals with the
fundamentals of quality management
systems,[3] including the eight management
principles upon which the family of standards is
based.
8 Principles of ISO
- Customer Focus
- Leadership
-Involvement of people
-Process approach
- System approach to the management
-Continual improvement
- Factual approach to decision making
- Mutually beneficial supplier relatiionships
INVENTORY MANAGEMENT 2) Work-in-progress (WIP) inventory

FINISHED GOOD TYPES OF INVENTORY Work-in-progress (WIP) inventory again refers

to retailers that manufacture their own
1. Ready for sale. products.
Also known as ‘available inventory,’ this is stock These are unfinished items or components
that has been manufactured/purchased and put currently in-production, but not yet ready for
away in the warehouse ready for sale. It could sale
be picked, packed and shipped without
complication at any desired moment. 3) Finished goods

2. Allocated. Finished goods are products that are complete

This is inventory that has been bought by a and ready for sale. These may have been
customer and allocated to a manufactured by the business itself, or
sales order. It is therefore not eligible for sale purchased as a whole, finished product from a
again, and must be removed from the supplier.
available inventory figure.
4) Maintenance, repair & operations (MRO)
3. In-transit. goods
This is unsold inventory that is currently on the
move - e.g. a purchase order MRO goods are items used within the
delivery in transit, or stock being moved to manufacture of products, but without directly
another warehouse. making up
any part of a finished product.
4. Seasonal. This can include items such as:
Also known as ‘anticipation stock,’ this is ● Production & repair tools.
inventory that has been ● Uniforms & safety equipment.
manufactured or purchased to specifically cover ● Cleaning supplies.
a forecasted upturn in demand.For ● Machinery.
example, to cover Black Friday sales, or your ● BaƩeries.
peak season. ● Computer systems

5. Safety. 5) Packing materials

This acts as a buffer cushion of stock to cover Packing materials are anything you use for
you in the event of any packing and protecting goods - either while in
unforeseen upturns in demand, or problems storage, or during shipping to customers
with supply
This is therefore particularly important for
FUNDAMENTAL TYPES OF INVENTORY online retailers. And may include things like:
● Bubble wrap.
1) Raw materials ● Padding.
● Packing chips.
Raw materials are any items used to ● A variety of boxes
manufacture finished products, or the individual
components that go into them. These can be
produced or sourced by a business itself or
purchased from a supplier.