Six Sigma is a widely used Operational Approach towards Operations Management and is frequently applied within Manufacturing Businesses, however the fundamental processes also apply within businesses operating within the Service Industry. The Purpose of Six Sigma is to reduce process variation so that virtually all the products or services provided meet or exceed customer expectations. Six Sigma adopts a very data driven, disciplined method for eliminating defects within processes and promoting business improvement within organisations. Six Sigma is able to show quantitatively how a process is performing and to achieve ‘Six Sigma Status’, a process must not produce more than 3.4 defects per million opportunities. Six Sigma is dissected into three core elements including: Process Improvement, Process Design/Re-Design & ProcessContinue reading
Operations Management
Role of the Warehouse in Postponement Strategies
The rapid changes occurring in customer-supplier relationship has resulted in shortening the product life cycle along with the product variations, which could meet the complex customer satisfaction demands. As the customer requirements changes rapidly, it increases the complexity of planning and demand forecasting to suit the changing demands. Hence, postponement strategies are able to help in solving such complex issues. The strategy involves delay in the production process to the maximum possible time, while delaying the point of product differentiation. As the whole strategy is related to the value of information, it can be maximized with delay in production decision time, giving more time to receive and analyze the customer requirement and demand. Hence, the postponement strategies help in improvingContinue reading
Importance of Customer Service in Supply Chain Management
Supply chain is basically considered as a strategic concept that involves understanding and managing the sequence of activities -from supplier to customer-that add value to the product supply pipeline. The role of customer service in the supply chain management is not incidental. Every company in this chain, irrespective of market size mainly they thankful to its customers as the fact is that in all profit of firm there are customers are in center whom to buy the goods and services produced by each one of them. This century marks the end of monopolies and therefore customers can make an array of choices. When customers decide not to buy products in a particular supply chain, then no doubt the company wouldContinue reading
Elements of a Quality Culture
Indeed, quality culture starts with top management. There need to be top management leadership to drive this culture of quality across the organisation. For this to happen, business leaders and managers must have the commitment in setting up quality control programmes, strategic planning for quality and provide resources for quality. In addition, top management leadership role is also a distinguishing element of a quality culture. Adopting a democratic leadership style where workers are not punished for errors and failures and that continuous learning is what prevails in the organisation. Management attitudes should be towards treating employees as members and remove barriers of superiors or subordinates. This suggests to everyone that the work of all members of the company is importantContinue reading
How to Eliminate Waste in Manufacturing?
What is Waste in Manufacturing Term? Waste Squander disposal is a standout amongst the best approaches to expand the gainfulness of any business. Forms either add esteem or waste to the creation of a decent or administration. The seven squanders started in Japan, where waste is known as “Muda.” “The seven squanders” is an apparatus to additionally order “Muda” and was initially created by Toyota’s Chief Engineer Taiichi Ohno as the center of the Toyota Production System, otherwise called Lean Manufacturing. To wipe out waste, it is imperative to see precisely what waste is and where it exists. While items altogether contrast between industrial facilities, the regular squanders found in assembling conditions are very comparative. For each waste, there isContinue reading
Differences Between Manufacturing and Service Operations
Generally speaking, process efficiency is the most important to manufacturing operations while production and marketing are inseparable to service operations. Manufacturing’s tangible output can be consumed overtime, less labor and more equipment are used in production, since automation has increased capital intensity while as a result reduced customer contact. Consumers rarely take part in the manufacturing process, many manufacturing operations have emphasized efficiency while compromising flexibility, the methods for monitoring and using resources are sophisticated while producing. On the other hand, service operations are different from those of manufacturing operations. Consumption and production of services takes place simultaneously or closely, and there are more labor and more customer participation, which means service businesses, usually are more customer-oriented. while elementary methodsContinue reading