Supplier Relationship Management (SRM) – Meaning and Importance

Supplier Relationship Management (SRM) is a concept in the Supply Chain Management, which considered in the aspect of establishing and sustaining the business relationship along the supply chain. Supplier Relationship Management (SRM) concerns the practical processes to integrate the communication and coordination between organizations and their suppliers.

Supplier chain relationship was considered to be one of the important factors in most business, since it can influence the potential of supply chain concept. Now, the modern business seems to be more complex with high competition. Due to the information has more valuable in the supply chain management, firms then need to re-design the ways of managing and sharing information among each others.… Read the rest

Concept of Agile Manufacturing

The Agile Manufacturing was presented in the first time at the publication in the USA of a report entitled 21st Century Manufacturing Enterprise Strategy. So, it has been introduced as a method of increasing competitive advantage in response to increasingly competitive global markets. Agile concept focuses on the fast response to changeable of customer demand. The key component in agile manufacturing is flexibility. The agile manufacturing methods can be adjusted and consolidated into companies of any size to ensure the growth and success. The changeable of customer and technological requirements that make the manufacturers develop agile supply chain capabilities in order to be competitive.… Read the rest

The Toyota Production System (TPS)

A key success factor that enabled Toyota to become the world’s most successful automobile company is its famous manufacturing method, the so called Toyota Production System (TPS). The evolution of the Toyota production system approach can be traced to the period immediately following the second world war when the economic outlook was uncertain and human, natural and capital resources were in limited supply. Against this background, the most important objective of the Toyota System has been to increase production efficiency by consistently and thoroughly eliminating waste. This concept developed between 1948 and 1975 by Toyota’s former president Toyoda Kiichiro and later by Ohno Taiichi and Eiji Toyoda represents a highly efficient production system that is similar to that of Henry Ford several decades earlier, although Toyota’s approach to both product development and distribution proved to be much more consumer-friendly and market-driven.… Read the rest

Seven Basic Tools of Quality

For the reason of human factor and human reliability, it is inevitable that there could be occurred some kind of faults and errors even in well planned and technically equipped organizations and systems. The errors or unplanned risks that might be happened during the project, can lead the customer to have negative opinion about the management team. Also some faults and risks might not being able to fix or might be too expensive to overcome it. Therefore a well prepared quality management plan is essential for an organization in order to ensure that the management plan that the project team works on, meet the customer satisfaction and their needs.… Read the rest

Ultimate Guide to Cause & Effect Diagram

The cause & effect diagram is the brainchild of Kaoru Ishikawa, who pioneered quality management processes in the Kawasaki shipyards, and in the process became one of the founding fathers of modern management. The cause and effect diagram is used to explore all the potential or real causes (or inputs) that result in a single effect (or output). Causes are arranged according to their level of importance or detail, resulting in a depiction of relationships and hierarchy of events. This can help you search for root causes, identify areas where there may be problems, and compare the relative importance of different causes.… Read the rest

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.… Read the rest