Operation and Quality ManagementAssignment.docx

Operation and Quality ManagementAssignment.docx

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OperationandQualityManagementAssignment

Operationandqualitymanagement

ERCBA103

2/13/2010

Lecturer:

Groupmembers:

Content

Introdution……………………………………………………….3

Businessprofile

Qualitymanagement………………………………………4

Processstrategy….…………………………………………..6

Supplychainmanagement……………………………7

Inventorymanagement…………………………………...9

Conclusion……………………………………………………….11

Reference…………………………………………………………..12

Introduction

Tohelpyoutostartatoymanufacturingcompany,westronglybelievethatOperationmanagementandqualitymanagementisaveryimportantfactor,andcouldnotbeneglectedinyourmanagementsystem.Inordertoprovethispoint,wewillsetouttheoverallimpactasthebeginning.

Withtheriseoftheservicesector,theconceptofthefurtherexpansionofproduction,andgraduallytoaccommodatethenon-manufacturingservicesector,includingnotonlythemanufactureoftangibleproducts,butalsoincludeintangibleservices.Theimplementationofeffectiveoperationsmanagementisincreasingly.Facedwithsuchpressure,qualitymanagementbecomeindispensable.

SofirstlyweshouldunderstandthatthegoaloftheQualityManagementprogram（QMP）istoestablishleadershipstructurethroughoutthepathofqualityworkflowthatenablesmerrytoymanufacturingcompanytoprovidehighqualityservices.Wearedesignedtopromotequalityandchild’sentertainmentandsafetyandalsooperationsefficiencythroughprocessstrategy,qualitymanagement,inventorymanagementandsupplychainmanagement

Qualitymanagement

Businessprofile:

Merryisatoymanufacturingcompany.Itdealswiththeproductionandsalesofvarioustoys.Asweallknow,childrenrelatedconsumptionisagoodgolddiggingpoint,thusit’scertainthatmanybusinessesgoforit.Toyindustryisoneofthecompetitivebattlefields.

Therearemainlythreecomponentsofqualitymanagement:

qualitycontrol,qualityassuranceandqualityimprovement.Mostofuswouldtakethesimpleviewthatqualitymanagementisjustconcernedwithproductquality.Infact,that’snotcomplete.Qualitymanagementalsodealswiththecontrolofmanufacturingprocess.Forthecompanywhosedominantbusinessisthemanufacturingandsellingofproducts,likeMerry,qualitymanagementisespeciallyimportant.High-qualityproductisthemostbasicthingyourcompanyshouldfocusontoachieveanoutstandingperformance.

Whenitcomestoqualitymanagement,themostclassiccasecouldbeSixSigmaMethodology.Sigmaisthestandarddeviationusedinstatistics.SixSigmaisamanagementapproachnearperfection,demandingthattheremustbelessthan3.4defectiveproductsorprocessespermillionunits.Anumberofworld-classinternationalcorporations,likeMotorola,Citigroup,Ford,KodakandGeneralElectric,onceemployedSixSigmatokeeptheirleadingpositioninindustry.Thewidelyusedmanagementmethodologycharacterizesinthefollowingaspects:

1）Ithighlightsthecustomerdemandandalwaystreatsitasthemainbreakthroughpoint.

2）Itemphasizesthemeasurementofperformanceandprocesses.Basedonthese,thecompanycomesupwithmorechallenginggoals.

3）Itprovidesspecificperformanceimprovingmethodsforspecificpurposesandfields.

4）Itownsagroupoftrainedprofessionalsinitsimplementationtoguaranteetheeffect.

5）Itdefinesthestandardandmeasurementofsuccessaswellastherewardingmethodstoemployeesparticipatingintheaccomplishment.

6）Itbreaksthebarriersbetweendifferentdepartments.

AllofusknowJackWelchandGeneralElectronic.Inthemidandlateryearsof1990’s,JackWelchbecamealoyalseekerofSixSigmaManagement.ThisledtoGE’sgreatsuccessandthewholeworld’seyes.

Actually,qualitymanagementhasmanyclassictheoriesbesidesSixSigma,likePDCACycle（Plan-Do-Check-Action）andTotalQualityManagement.Theyhavebeenraisedandbeinguseduniversallyintoday’ssociety.Thosesuccessfulstoriescangiveyousomeexperienceonthequalitymanagement.Inthedailyoperationofyourtoycompany,youcanborrowanduseit.

Processstrategy

Businessprofile:

Merryisatoymanufacturingcompany.Itdealswiththeproductionandsalesofvarioustoys.Asweallknow,childrenrelatedconsumptionisagoodgolddiggingpoint,thusit’scertainthatmanybusinessesgoforit.Toyindustryisoneofthecompetitivebattlefields.

Toobtainanadvantageovertherivals,processstrategyandsupplychainmanagementarevital.

Processstrategyistofigureoutthewayofdoingrightthingstoimprovetheproductivityorefficiency.Afterrecognitionofabetterprocess,theexistingprocesscanbeoptimizedtoachieveamuchmoresatisfyingperformance.Let’stakeanautomobilemanufacturingfactoryasanexample.Withrapiddevelopment,itsscaleandlabourhadincreasedalotyetnochangeinmanagementsystem.Soabottleneckoccurred.Undertheguidanceofexperts,thecompanybegantorealizetheproblemsandoptimizeitsprocess,includingstandardizationofprocessinsteadofprocessmessamongdifferentdepartments,processfunctionreinforcementinsteadofuselessform,processsupervisioninsteadofignoranceoftheimplementation.Theadoptionoftheseprocessstrategiesdidgivemuchvigourtothecompany:

theproductionhadbeensoaring;what’smore,theemployeeshadbeenmoredisciplinedandorganized.Thisexampletellshowtheprocessstrategycanhelpusmakeabreakthroughandyieldtwicetheresultwithhalftheeffort.Besidesthosemeasures,processstrategyalsoincludesprocessrestructuring,processcuttingandprocesscontroletc.Inreality,mostmanufacturersneglecttheimportanceofprocessoptimization.Theyputalltheiremphasisontheequipmentortechnology.Ihopeyourtoyfactorywilldrawalessonfromit.Afterallforamanufacturingfactory,productionisthetoppriorityneededtobedealtwithandisacriticalcompetitivepoint.Youwillbenefitalottotakeprocessstrategyintoconsiderationintheproductionoftoys.

Supplychainmanagement

AccordingtoTomMcGuffog,SupplyChainManagement（SCM）is"Maximizingaddedvalueandreducingtotalcostacrosstheentiretradingprocessthroughfocusingonspeedandcertaintyofresponsetothemarket."Supplychainissocomplicatedasystemthatitneedsefficientcoordinationandmanagement.Hugeinvisibleprofitsarehiddenbetweeneverytwochains.ThepurposeofSCMistosqueezeoutthoseprofitscontinuously.Tounderstandthismorevividly,I’dliketoemploythemostclassiccaseWal-Mart.Astheglobalnumberoneretailbusiness,Wal-Mart’sSCMconsistsoffourparts:

Customerdemandmanagement:

Allbusinessesknowthemotto“customerisGod”.Onlysticktoourcommitmentstocustomerscanwemakethemostprofits.Highqualityproductsandhighstandardservicesarethebasicthingsweshoulddo.

Supplierandpartnermanagement:

Wal-MarthasestablishedstrategicrelationshipwithP&G.ItprovidesP&Gwithplentyofroomtodemonstrateitselffreely;itusesP&G’sfametopopularizeitself.Theyarediggingpotentialmutualbenefitsinsteadofgrabbingtheexistingcake.

Inner-companyandbetween-companylogisticsmanagement:

Wal-Martestablisheditsownlogisticsystemtoguaranteemostefficientandinstantdelivery.Marchingwithtechnology,thesystemhasrealizedautomation.

Informationcommunicationbasedoninternetorintranet:

Wal-Martisthefirstretailbusinesstolaunchacommunicationsatellite.Withthehelpofthesatellite,Wal-Martmakesdeliverykeepthesamepacewithsales.

MaybeyoucanlearnfromthesuccessofWal-MartandstresstheimportanceofSCM.ThekeypointofSCMliesincloserelationshipsandcooperationbetweenupstreamanddownstreamcompanies.Foryourtoyfactory,forexample,youcanconsidercarefullythebestlocationoffactoryfortheconvenienceofdeliverytoyourdownstreamcustomers.Also,youcandesignacustomerfeedbacksystemtounderstandthecustomer’srealdemandandcommentatthefirsttime.

WecanseebothprocessstrategyandsupplychainmanagementarescientificapproachestoachievetheeffectofParetoOptimality.

InventoryManagement

Inventorymanagement,theplanningandcontrollingofinventoriesinordertomeettheorganization,isanimportantconcernformanagersinalltypesofbusinesses.Inventoriesareimportanttoalltypesoforganizations,theiremployees,andtheirsupplychains.Inventoriesprofoundlyaffecteverydayoperationsbecausetheymustbecounted,paidfor,usedinoperations,usedtosatisfycustomers,andmanaged.Nonetheless,companiesrealizethattheavailabilityofproductsisakeysellingpointinmanymarketsanddownrightcriticalinmanymore.

Certainly,toomuchinventoryonhandreducesprofitability,andtoolittleinventoryonhandcreatesshortagesinthesupplychainandultimatelydamagescustomerconfidence.Inthisrespect,Merrydoesverywell.Despitethemanychangesthatcompanygoesthrough,thebasicprinciplesofinventorymanagementremainthesame.Someofthenewapproachesandtechniquesarewrappedinnewterminology,buttheunderlyingprinciplesforaccomplishinggoodinventorymanagementhasnotchanged.Itsinventorymanagementdesignedtomeetthedictatesofthemarketplaceandsupportthecompany'sstrategicplan.

ThecompanyofMerryusesJ-I-T（justintime）andJ-I-C（justincase）systems.Thecompanyprovidestheproductswhatdoescustomerwantandwhendoescustomerwant.Merryprovidestheproductsintimeandincase.So,itdecidesthatMerryshouldhaveagoodinventorymanagement.Theinventorymanagementsystemprovidesinformationtoefficientlymanagetheflowofmaterials,effectivelyutilizepeopleandequipment,coordinateinternalactivities,and