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Supply chain management concept and philosophy
What is the importance of continuous improvement
Conceptual framework supply chain management
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Continuous Improvement
In present world, supply chain management plays an important role in businesses. In order to create efficient supply chain, the right approach is essential. This essay will explain Lean synchronization, one of the most popular supply chain philosophy, as the role of talent and technology, and four principles to success in continuous improvement.
There are various ways to improve supply chain in the competitive environment. Lean synchronization is considered one of the best techniques. Lean philosophy targets are producing perfect quality of products and reducing waste. The most important part of lean philosophy is focus on eliminate all of the waste. Waste can identify as activities that is non-added value both in production
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(Slack. et al, 2013) The roles of technology and talents are involved with continuous improvement. For the technology role, “If you think expensive technology changes are the gatekeepers for continuous improvement, think again” (Keller, 2011). Continuous improvement focuses mainly on quality, cost, delivery, and services in business processes. Afterwards, identify and improve the processes that contribute these factors. There is no doubt that generally technology causes the occurrence of continuous improvement; however, the company can improve these processes without absolute needed of technology. The company could improve the business processes with continuous improvement tools and techniques. Technology role is essential in the processes such as production, design, and information system (Keller, 2011). On the other hand, talent appears to be more essential than technology. Gonsalvez (2014) claims that although technology and talent are the key factors in the quest of continuous improvement, technologies grow in the faster pace than companies able to adapted and perceived those new technologies. The knowledge of supply chain from talent emerges to be more important. Talent is needed to coordinate technology and knowledge along with effectively operates this combination in the company (Gonsalvez, 2014). To be talent in supply chain management, it requires more than supply chain knowledge “ modern-day supply chain management is about much more than coordinating the physical movement of goods from one point to another. It encompasses procurement expertise, supplier management, knowledge of international trade trends and regulations, information-technology prowess and customer-relationship management, to name but a few key aspects of the discipline ” (Bowman, 2013). Also, there are demanding skill that is needed to be in supply chain management role. Supply chain management is not just math.
Achieving quality of conformance involved conform to specifications that involve providing customers with a quality product at the right price which accounts for the cost of materials. In order for a company to achieve and produce a successful product that customers want and need, it is vital that quality management and lean systems play front row. Quality management helps organizations to reduce waste and inventory. “Lean is about challenging the way things are done and opening our eyes to that waste and inefficiency” (Lean Benefits - Benefits of Lean, Why Lean is Important, 2015). Within each of these concepts are important tool and techniques that organizations can use to achieve a quality product. In this paper I will discuss “cost of quality” from the quality management side and “kaizen’s” from the lean system side, while discussing how each of these concepts are implemented into my own life or
Every business has an evolutionary clock speed measuring the rate of change in products, processes and capability. At the core of everything is the organizations ability to design a sustainable supply chain. When this becomes an organizations core competency, they are then positioned to continually win the temporary advantage. By simultaneously working to improve products, process design/creation and supply chains (three dimensional concurrent engineering), a company can drive the “turn of the helix” thus changing the clock speed for the industry.
In the 1960s through the 1970s, companies realized strong engineering, design, and manufacturing functions were strong market strategy keys to create and capture customer loyalty. As the demand for new products rose in the 1980s, these market requirements were to increase their flexibility and responsiveness to adapt existing products and processes or to develop new ones in order to meet customer needs. As manufacturing improved in the 1990s, managers began noticing material and service inputs involving suppliers and their major impact on an organization’s ability to meet customer needs. As a result of these changes, organizations now find that it difficult to manage their own organizations. First, they must be involved in the management of their network of all upstream firms that provide directly or indirectly, as well as the network of downstream firms, which are responsible for delivery and market service of the product to the end customer. In order to succeed, managers have to realize that they cannot do it alone and they must work together on a daily basis with the whole organizations in their supply chains. Because supply chain management involves all functions within an organization, managers need to know what a supply chain is, why it is important, and the impact of supply chain management on the success and profitability of their organization. Today, Wal-Mart topped the list of the America’s biggest companies on the Fortune 500 list, “with sales of almost $345 billion — more than a quarter of a trillion dollars” (Forbs). Wal-Mart’s supply chain management is becoming recognized as a core competitive strategy.
The lean principles respond to changing customer desires and also provide high quality, low cost and faster throughput times. Lean principles eliminate waste along entire value streams thus creating processes that require less human investment, time and effort to come up with products and services at far less costs and with much fewer defects compared with conventional business systems.[1]
The steel manufacturing company Corus focuses on meeting the needs of its worldwide customers and providing innovative solutions. It manufactures, processes and distributes steel and aluminium products worldwide.
“The Goal” is a book written by Eliyahu M. Goldratt and Jeff Cox in 1984. The book is very famous in the management field. In 2004, the author published the third revision of it and celebrated selling over than three million copied of it around the world. Also, the goal book is taught in over than 120 collages. The book was recommended by my professor to be read and summarize as an extra credit.
In today's competitive world of manufacturing process can only be accomplished with a lean operation or with another word is called Lean Operation, is a set of tools and methodologies that aims for the continuous elimination of all waste in the production process. The main benefits of this are for getting costs of production is cheap, output will increase and production times will shorter. Lean manufacturing also can guarantee quality and maximizes efficiency. This process involves the standardization of work & eliminate waste. The standard is the best identified method of operation at a particular moment in time and one that will be continuously monitored and improvement from worker. The key to lean production is to identify processes is add value to the production process. Processes that labor and machinery can focus on added value activities’.History of Lean started with Henry Ford credited the original movement. Then follow with Kiichiro Toyoda and Taiichi Ohno: 1930’s developed the Toyota Production System (TPS) and have been implemented gradually throughout Toyota’s operations beginning in the 1950's. In 1980’s Toyota had increasingly become known for the effectiveness with which it had implemented Just-In-Time (JIT) manufacturing systems. Jim Womack, is started popular an author of Lean thinking, with a machine that can change the world and lean solutions.
Continuous improvement (CI) refers to a philosophy consisting of improvement activities that increase successes and reduce failures in a production process (Bhuiyan & Baghel 2005, p. 761). It involves activities and processes that focus on continuous and incremental innovation (Bessant et al., 1994, p.17). CI is a new approach that enhances productivity, performance, and achieves competitive advantage needed in the highly competitive industries. It may also serve as a complementary approach to other quality improvement initiatives such as total quality management (TQM) (Pike, Barnes, & Barnes 1995, p. 23; Larson 2003; Lassen, Gertsen, & Riis 2006; Oakland 2007, p. 227). The purpose of this research is to explore the application of production systems engineering methods in the CI at manufacturing plants.
Maintenance and promotion of quality improvement initiatives are essential for the successful growth and development of the health care industry. Nurses are key to all quality improvement initiatives as they are in the frontlines and have the most contact with the healthcare consumers. Therefore, nursing professionals are good at putting in their valuable inputs for quality improvement efforts. On a daily basis nursing professionals strive to deliver safe, efficient, effective, patient-centered care in a timely manner. With the growth and development in the health care industry, there is an increased need to provide competent and high quality services. Nurses are equipped with distinctive proficiency required for delivery of patient care
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Lean manufacturing and just-in-time processing are great business strategies that can severely stress a supply chain. The supply chain and supply chain management is a critical operations management element for any major company to succeed and remain competitive in the global market. The supply chain is one of many pieces critical to maximizing value to the end customer and requires close management to minimize external impacts. If a company is relying on another company to supply the raw materials needed for their production line, then impacts to this other company could impact their supply chain. Careful risk management is needed to optimize performance. As a company expands into global markets and global suppliers, this risk and management challenge is multiplied. The global nature of the company could impact important activities such as transportation, funds transfers, suppliers, distributors, accounting and information sharing. Disruption to the supply chain can significantly reduce revenue, cut market share, inflate costs and threaten production. A major disruption would have obvious impacts to profit, but could have additional intangible impacts to the credibility of the company if products are not delivered on time.
Lean manufacturing is an approach to manufacturing in which any resource spending that does not create value for the end customer is considered wasteful and should therefore be modified. Also this is considered “a theory that can help you to simplify and organize your working environment so that you can reduce waste, and keep your people, equipment, and workspace responsive to what’s needed right now.”( Lean Manufacturing) This explains how lean manufacturing can make the process of production more efficient. When it comes to lean manufacturing there are multiple principles that are apart of it. These Principles are the elimination of waste, continuous improvement, respect of humanity, levelized production, just-in-time production, and quality
One of the components of Walmart’s supply chain in which their success is heavily relied on is the continuous improvement of their supply management as a whole, particularly within their e-commerce division. According to an article on the website logistics company Cerasis, “Not only has Walmart excelled over the decades in traditional supply chain management, but. is also focused on continuous improvement by investing more into emerging technologies to capture more of the e-commerce market.” (University of San Francisco, 2015). A concept that our class discussed time and time again throughout the semester was the concept of continuous improvement.
The key performance drivers of Supply Chain Management (SCM) are - facility effectiveness, inventory effectiveness, transportation effectiveness, information effectiveness, sourcing effectiveness, pricing effectiveness, delivery effectiveness, quality effectiveness and service effectiveness. These drivers include various performance markers that may be measured quantitatively by gathering information and applying them in SPSS. The works here may principally be quantitative with spellbinding measurable investigation. In the current world, practical supply chain management to help the triple primary concern, (nature, domain, and economy) is likewise included in the extent of supply chain performance drivers. This is relatively a quite new research region.
A supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system [1]. The basic objective of supply chain is to “optimize performance of the chain to add as much value as possible for the least cost possible.