BENEFITS OF QUALITY CIRCLE

• 1. Benefits to the organization :

• a) Improve – employee & employer relationship.
• b) Develop – participative culture & team spirit.
• c) Reduce – work related errors & cost.
• d) Increase – productivity.
• e) Improve – quality of the goods & services.
• f) Leads – towards the better efficiency.
• g) Catalyze – attitudinal change.
• h) Save – amount of time.
 CONTINUED…………………..........
• 2. Benefits to the employee :
• a)Provide- job interest
• b)Give – sense of participation.
• c)Develop – latent problem solving capabilities.
• d)Improve – individual communication capability.
• e)Advances – employee career & personal development.
• f)Involve – worker in decision making.
• g)Remove – frustration.
• h)Encourage – employee to get involve with common goal of
the org.
 Configuration of a production line

A manual assembly line is a production line that consists of a

Sequence of workstations where the assembly tasks are performed
by human workers. Products are assembled as they move along the
line. At each station, a portion of the total work is performed on each
Unit.
 Characteristics of a Well-Designed
Service System (1 of 2)
1. Each element of the service system is consistent
with the strategic and operating focus of the firm

2. It is user-friendly
FedEx
3. It is robust and easy to
sustain

4. It is structured so that consistent performance by

its people and systems is easily maintained
 Characteristics of a Well-Designed
Service System (2 of 2)
5. It provides effective links between the back office and
the front office so that nothing falls between the cracks

6. It manages the evidence of service quality in such a

way that customers see the value of the service
provided

7. It is cost-effective

8. It ensures reliability and high quality

 Challenges of Service Design

1. Variable requirements
2. Difficult to describe
3. High customer contact
4. Service – customer encounter
 Guidelines for Successful Service
Design
1. Define the service package
2. Focus on customer’s perspective
3. Consider image of the service package
4. Recognize that designer’s perspective is different
from the customer’s perspecticve
5. Make sure that managers are involved
6. Define quality for tangible and intangibles
7. Make sure that recruitment, training and rewards are
consistent with service expectations
8. Establish procedures to handle exceptions
9. Establish systems to monitor service
 SUPPLY CHAIN ELEMENTS
• Supply Chain Design
Strategic • Resource Acquisition
• Long Term Planning (1 Year ++)

• Production/ Distribution Planning

Tactical • Resource Allocation
• Medium Term Planning (Qtrly,Mo

• Shipment Scheduling
Operational • Resource Scheduling
• Short Term Planning (Weekly,Dail
Supply Chain Collaboration – What Is It?

 Many different definitions depending on perspective

 The means by which companies within the supply chain work
together towards mutual goals by sharing
◦ Ideas
◦ Information
◦ Processes
◦ Knowledge
◦ Information
◦ Risks
◦ Rewards
 Why collaborate?
◦ Accelerate entry into new markets
◦ Changes the relationship between cost/value/profit equation

73
Supply Chain Collaboration

 Cornerstone of effective SCM

 The focus of many of today’s SCM initiatives
 The only method that has the potential to eliminate or minimize
the Bullwhip effect Retailers

Suppliers Synchronized Manufacturer

Production
Scheduling Collaborative
Distributors/
Demand
Collaborative Wholesalers
Planning
Product
Development

Collaborative Logistics Planning

•Transportation services
•Distribution center services

Logistics Providers
74
Benefits of Supply Chain Collaboration
CUSTOMERS
• Reduced inventory
• Increased revenue
• Lower order management costs
• Higher Gross Margin
• Better forecast accuracy
• Better allocation of promotional
budgets
• More efficient use of human resources
Source: Cohen & Roussel
MATERIAL SUPPLIERS
• Reduced inventory
• Lower warehousing costs
• Lower material acquisition costs
• Fewer stockout conditions
• Improved customer service
SERVICE
SUPPLIERS
• Lower freight costs
• Faster and more reliable delivery
• Lower capital costs
• Reduced depreciation
• Lower fixed costs
75
Supply Chain Collaboration Spectrum

 Thegreen arrow describes

Extensive Not Viable Synchronized
Collaboration increasing complexity and
sophistication of:
◦ Information systems
Extent of Collaboration

◦ Systems infrastructure
◦ Decision support systems
◦ Planning mechanisms
Coordinated ◦ Information sharing
Collaboration ◦ Process understanding
 Higher levels of
collaboration imply the
Cooperative need for both trading
Collaboration partners to have
equivalent (or close) levels
of supply chain maturity
 Synchronized collaboration
demands joint planning,
R&D and sharing of
information and
Transactional
processing models
Collaboration Low Return
Limited ◦ Movement to real-time
customer demand
Many Few information throughout the
Number of Relationships supply chain

Source: Cohen & Roussel 76

Successful Supply Chain Collaboration

 Try to collaborate internally before you try external

collaboration
 Help your partners to work with you
 Share the savings
 Start small (a limited number of selected partners) and stay
focused on what you want to achieve in the collaboration
 Advance your IT capabilities only to the level that you expect
your partners to manage
 Put a comprehensive metrics program in place that allows you
to monitor your partners’ performance
 Make sure people are kept part of the equation
◦ Systems do not replace people
◦ Make sure your organization is populated with competent
professionals who’ve done this before

77
 Supply Chain

Supplier Manufacturer Distributor Retailer Customers

 Evolution of SCM

Stage 1: Vendor – Purchase – Production

- Distribution – Retailer

Stage 2: Materials Management -

Logistics Management

Stage 3: Supply Chain Management

What is forecasting all about?

Demand for Mercedes E Class We try to predict the

future by looking back
at the past

Predicted
demand
looking
Time back six
Jan Feb Mar Apr May Jun Jul Aug months
Actual demand (past sales)
Predicted demand
 Steps in the Forecasting Process

Step 1 Identify the goal of the forecast

Step 2 Establish a time horizon

Step 3 Select a forecasting technique

Step 4 Conduct the forecast (analyze data)

Step 5 Determine its accuracy

Step 6 Monitor the forecast

Chapter 2: Quantitatve
Methods in Health Care Yasar A. Ozcan 97
Management
 Benefits of MRP

• Low levels of in-process inventories

• Ability to track material requirements
• Ability to evaluate capacity requirements
• Means of allocating production time
• Ability to easily determine inventory usage by
backflushing
• Backflushing: Exploding an end item’s bill of
materials to determine the quantities of the
components that were used to make the item.
14-122
 MRP Planning

Develop a tentative Use MRP to

master production simulate material
schedule requirements

Convert material Revise tentative

requirements to master production
resource requirements schedule
No
Can
Is shop capacity be
capacity No
changed to meet
adequate? requirements
Yes Yes

Firm up a portion Change

of the MPS capacity
 Other Scheduling Techniques

• Forward Scheduling – starts processing when a job is received

• Backward Scheduling – begin scheduling the job’s last activity so
that the job is finished on due date

© Wiley 2010 129

 Production
High

Project Systems
Job Shop

Batch
Customization

production

Flow
Shop

Continuous
production

Low
Low High
Volume
 Production
High Aircraft
Project
Custom-made
Systems
machines and
Job Shop parts

Books
Batch
Customization

production

Automobile
Flow
Shop

Oil refinery
Continuous
production

Low
Low High
Volume
 Labor intensive Production
High

Project Systems
Job Shop

Batch
Customization

production

Flow Capital intensive

Shop

Continuous
production

Low
Low High
Volume
 More frequent
Rescheduling
Production
High

Project Systems
Job Shop

Batch
Customization

production

Less frequent
Flow
Shop
Rescheduling

Continuous
production

Low
Low High
Volume