12 - Lecture 12 Innovative Inventory and Production...

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Lecture 12 Innovative Inventory and Production Management Techniques
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Complete products just in time to ship customers. Complete parts just in time for assembly into products. Schedule production. Receive materials just in time for production. Receive customer orders. Just-in-Time (JIT) Systems
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Flexible workforce Reduced setup time Zero production defects JIT Consequences Improved plant layout JIT purchasing Fewer, but more ultrareliable suppliers. Frequent JIT deliveries in small lots. Defect-free supplier deliveries.
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More rapid response to customer orders Freed-up funds Reduced inventory costs Greater customer satisfaction Higher quality products Benefits of a JIT System Increased throughput
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is Total Quality Management (TQM) Continuous Improvement TQM improves productivity by encouraging the use of fact and analysis for decision making and if properly implemented, avoids counter-productive organizational infighting. Systematic problem solving using tools such as benchmarking
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Process Reengineering The process is redesigned to eliminate all non-value-added activities Every step in the business process must be justified. A business process is diagrammed in detail. Anticipated results: Anticipated results: Process is simplified. Process is completed in less time. Costs are reduced. Opportunities for errors are reduced.
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Process Reengineering versus TQM Process Reengineering Radically overhauls existing processes. Likely to be imposed from above and to use outside consultants. Total Quality Management Tweaks existing processes to realize gradual improvements. Uses a team approach involving people who work directly in the process.
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constraint (also called a bottleneck ) is anything that prevents you from getting more of what you want. The constraint in a system is determined
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This note was uploaded on 01/16/2010 for the course AF AF 3112 taught by Professor Woo-jonglee during the Spring '08 term at Polytechnic University of Puerto Rico.

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12 - Lecture 12 Innovative Inventory and Production...

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