byrd Chap013 pp fix

byrd Chap013 pp fix - Purchasing, Inventory, And Quality...

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Unformatted text preview: Purchasing, Inventory, And Quality Control Purchasing & Suppliers Purchasing Procedures & Purchasing Inventory Control Inventory Planning & Quality Control * * * * * * * * * 13 - 1 Purchasing “…determines the company’s determines needs and then finds, orders, and assures delivery of those items.” items.” Must Consider Quality Control Must * * * * * * * * * 13 - 2 © Special Situations Affecting Purchasing Orders For Expected Orders Expected * Changes In Price Specialty Goods * Specialty Changes Expected Changes Expected In Product Demand In * * * Short Supply * Of Materials * * * 13 - 3 Types Of Suppliers Brokers Jobbers Wholesalers Producers PhotoLink/Getty Images * * * * * * * * * 13 - 4 Supplier Supplier Selection/Standards Selection/Standards Price Quality Service Reliability Evaluate Performance PhotoLink/Getty Images * * * * * * * * * 13 - 5 Purchase Order Flowchart * * * * * * * * * 13 - 6 Requisition Origination 1) Inventory LowInventory Observation Observation 2) Need For ItemNeed Automatic Recognition Automatic Ryan McVay/Getty Images 3) Manager Request 4) Customer Request * * * * * * * * * 13 - 7 Semiannual Production Schedule * * * * * * * * * 13 - 8 Orders Purchase Standing * * * * * * * * * 13 - 9 Purchasing & Computers Track Items Spot Needs Identify Source Identify Of Supply Provide Information • For Ordering • Checking Accuracy Of Checking Receipts Receipts * * * * * * * * * 13 - 10 Inventory “…formal list formal of all the property of a business, or the property so listed.” so John A. Rizzo/Getty Images * * * * * * * * * 13 - 11 Material Flow & Inventory * * * * * * * * * 13 - 12 Goods Flow & Inventory * * * * * * * * * 13 - 13 Types Of Inventory Finished Goods Work-In-Process Repair Parts Supplies • Office • Store • Shop Miscellaneous * * * * * * * * * 13 - 14 Inventory Carrying Costs $ Storage $ Insurance/Taxes $ Lost Opportunity $ Theft/Destruction $ Obsolescence/Deterioration * * * * * * * * * 13 - 15 Economic Order Quantity “…is the quantity to is purchase that balances the cost of placing the order with the cost of carrying the inventory.” the * * * * * * * * * 13 - 16 Handling Demand Variations Allow To Occur Use Self-Service/Hire Temps Inventory Buildups/Drawdowns Complementary Products Subcontract Lose Sales IInducements During Low nducements Royalty-Free/CORBIS Demand Demand * * * * * * * * * 13 - 17 Quality “…product characteristics product and/or the probability of meeting established standards.” standards.” * * * * * * Standards = Customer Expectations * * * 13 - 18 Quality Involves Total Quality Management – www.tqmnet.com Total www.tqmnet.com Strength Color Taste Smell Content Weight Tone * * Capacity * Accomplishment * * Creativity * * Reliability * Etc. * Look 13 - 19 Design Quality: Product designed to meet Design customer requirements customer Production Quality: Product meets design Production specifications specifications Quality Measure: Number of defects Six Sigma is a product that has no defects Six 99.9996% of the time or 1.4 defects per million opportunities million * * * * * * * * * 13 - 20 Improving & Controlling Quality oQuality Circles oDesign John A. Rizzo/Getty Images oGood Process * * * * * * * * * 13 - 21 Quality Circle Operation * * * * * * * * * 13 - 22 Deming’s 14 Points 1. 2. 3. 4. 5. 6. 7. Create Constancy Adopt Philosophy Cease Inspection End Price Tag End Awards Awards Constant Constant Improvement Improvement Train Lead 8. Drive Out Fear 9. Break Down Break Barriers Barriers 10. Eliminate Eliminate Slogans Slogans 11. Eliminate Eliminate Quotas Quotas 12. Pride Of Pride Workmanship Workmanship 13. Educate 14. Transform * * * * * * * * * 13 - 23 Quality Control Steps Set Standards Measure Measure Performance Performance Compare Compare Performance Performance Make Corrections * * * * * * * * * 13 - 24 Quality Control Feedback * * * * * * * * * 13 - 25 ...
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This note was uploaded on 11/16/2011 for the course 382 303 taught by Professor Dougherty during the Fall '11 term at Rutgers.

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