Description
A product is something that is made (produced) and often something that is sold. In Economics, things that one person has and another person wants are called goods. If the thing was made by people, then it is called a product. If it is something that was found in nature, then it is called a natural resource.
Management Study On Quality In Handling Of Production Inventory In Auto process Plc
Section 1: Business Area – Handling of production inventory Quality in production inventory is the raw materials and the supplied parts from suppliers and sellers to the factory AUTOPROCESS plc, where AUTOPROCESS plc uses these parts in its production process. But first these parts are stored as inventory or material and received by the material handling workers and employees so the production inventory/material includes all the parts or inputs that are received by the AUTOPROCESS plc and are used later for manufacturing, the whole process of receiving the parts and handling them affects quality in many dimensions. It includes some factors and attributes such as the sellers, customers and factors that are going to be mentioned in this report. The scope is defined as all the attributes related to quality in handling of the parts received buy the storage areas and the assembly areas and all the parties involved in the process. The business activity of handling production inventory has subareas and sub processes. The subareas include the receiving of the parts/production inventory/input from suppliers and storing, in addition and most important is registering the parts and documenting. Sub process, a process of making sure to maintain an accurate number or count of inventory by counting (Sheldon, 2004). Sub processes are similar and include many subareas that mentioned before and also include placing the inputs in correct order and on time delivery (making sure the parts are delivered by the supplier) verify the parts/production inventory and check if the correct order was made. Start
Order Placed
Receiving Area Storage Area/Shelves Use of Parts in Production
End
The handling of production inventory process and sub processes starts with placing an order from the supplier and making sure the order is correct and that the correct number is needed and that the inventory doesn't have that order so there won't be an excess of the material. Then the handling of the production inventory is received on the receiving area designated to that purpose, then the production inventory is taken to storage area/shelves and this is very crucial for the quality of the process. In the end of the handling process of the production inventory the material is then transferred to the production line or assembly and all this process is recorded and the data is kept in the IT department with all the relevant paper work.
Controls, receiving of parts/inputs classification and categorisation, sorting and storing
Input, production inventory from supplier
Handling of production inventory
Output, Inventory is accurate and well organised
Cost, of handling by employees and material department The diagram basically show how quality in handling production inventory is explained, we have the inputs which is the supply from the supplier to the company and the controls where the receiving of the production inventory/parts and the categorization, sorting and storing n appropriate place and storage areas is performed. On the other side, we have the cost of handling the production inventory, this include the cost of employees and the departments like the IT department which record all this process. The output is the accurate and well organised production inventory this is the main goal of the whole quality process. To evaluate the quality in handling of inventory productions many activities can be used some include: • Inventory management and recording material by physically counting the material
• • •
Materials are sorted correctly on shelves Prevent excess production inventory/material or shortage Monitor employees and material handling workers
Section 2: Stakeholders Owners of AUTOPROCES S plc
Suppliers of production inventory
Quality in handling of production inventory
Customers, LLM ltd
Employees who handle production inventory and the departments Stakeholders Diagram (Freeman, 2010) The involved stakeholders are the company's AUTOPROCESS plc material production inventory handling employees who are involved directly in the handling process of the parts/production inventory/inputs and the IT department which in turn takes responsibility to record all the data and all the transactions of ingoing and outgoing production inventory that the company make and record and inventory shortage or excess in order to take appropriate action by either ordering or use what is available. Another stakeholder is the Large-motors-manufacturer (LMM) ltd, because this is the customer that AUTOPROCESS needs to supply with its products, keep the customer satisfied and not get any penalties by delaying or supplying the wrong product. In order for AUTOPROCESS to have a quality in handling of inventory production so all the stakeholders should do or satisfy their job. So we have the owners/investors of AUTOPROCESS plc, the suppliers, employees who handle the production inventory and the customers, all the parties with power and influence on the decision making process and who have the right to control the organisation are stakeholders according to (Thompson and Driver, 2005) all these stakeholders affect the quality of the process. Impact of quality in handling of production inventory on owners is profit and revenue that the company makes, because the material is accurate and satisfies the orders placed by the customers then the company is profitable. The suppliers affect also the
quality in handling of production inventory because if the supplied parts were delivered on time and with no delay then the product is processed on the assembly lines and shipped on time so time plays a great roll and it's an important factor that should be considered in quality. Employees include all the employees involved in handling of production inventory from the employees who physically receive the parts/inputs/production inventory from suppliers and also includes employees who handle the parts and place them in storage areas to employees who record the work and deal with the paper work and all the departments involved in the process all in all affect the quality of the process. Customers are one of the major stakeholders because if the product is delivered on time there was no shortage or delay the customer is happy and satisfied and there won't be and penalties on neither the company nor the company will lose the customer. The handling of production inventory or material in the right manner effects the production which affects the supply to the customer according to (Freeman, 2010).
Section 3: Quality attributes why, how, when and where Inventory management and recording, this attribute is important because demand patterns should be checked and the demand for each period overtime should be made available, also, big part of inventory management is supplier information, which is all the related information regarding the material, such as, the product supplied, quality, reliability, trading history and payment method In addition, product details which include the specification of the product and the detailed description plus the catalogue, transport is also an important factor, if the product need special transport vehicles or conditions all these attributes affect the quality (Waters, 2003). So in order to achieve best quality in all the aspect of the business this attribute should be considered and done in a correct manner. The level of quality can't be achieved until the inventory management is done and satisfied completely by the employees. Inventory management, recording material and calculating quantities are important so not to have errors when placing an order from the customer. The management of production inventory/material is important because the company will stay updated on what material it has in store and what is missing or in shortage. This attribute is an important measure of quality because as the company know the exact number of material the company take orders from customers and meet deadlines, also the company can know the exact cost based on material it handles and how much money is spent on production inventory management for example the wages of the handling employees. The counting would be measured first before the delivery then when handling the quantities would be counted before storage, it would be measured in the supplier side and then measured again on the receiver side so there would be a high quality in the handling process of the production inventory/material ( Baird et al 2011). Also, this attribute would be measured by performing a checklist and determine what is missing or needed. Optimum storage layout means that a perfect storage facility should be established that is achieved by inventory being stored in logical order and employees have easy access to the material for future checks of material availability (Sheldon, 2004). Production inventory should be stored correctly on shelves because it affects quality on many angles. The quality in handling can't be achieved completely unless the material is stored in the right format and order the quality of handling the inventory would be maximized if the inventory or material is sorted out in a formal easy to recognise form. First quality of service and handling, it requires less time to search for the parts if they are stored in order correctly which means less cost of operation to the company. When
handling the production inventory the handling can be measured by supervisors who will take notes of the whole process and document it on paper to compare how the employees performing in handling and to improve the quality of handling of the production inventory. The storage would be would be measured at all the receiving points before the receiving of the parts and storing them, the handling would be measured at the stage of sorting so it would be measured at the stores and the shelves areas of the company. Prevent excess of material or shortage of material, this attribute is extremely important for the company quality measures. As material is reaching a level where the company can't satisfy orders from customers this impose a heavy loss of profit on the company. Also, the material in excess which is old may not be useful to it's date expires because the parts/material degrades due to weather conditions for example which will make the company lose money and will affect the quality of its production. This attribute would be measured through keeping records of all the incoming and outgoing material from the storage area so the employees responsible for handling of the production inventory or material must keep a record and this record should be passed to the sales department. The attribute would be measured before the purchase department makes any purchase and the department will check first if production inventory are available in stores by checking with the handling employees. The attribute would be measured at any point in the company's production stage because it's important to know the quantity required. Monitoring employees and production inventory handling workers because employees work physically with the material and by monitoring them this would tell the company how they are performing and if handling of production inventory is done correctly within schedule and within the correct work conditions as advised by (Loch et al 2008). The attribute can be measured through the periodic review of job, managers and supervisors can do weekly or monthly reviews of the handling employees work. Good trained employees who are trusted and can fulfil the task given to them produce better production which delivers more customer satisfaction which increases profit. The assessment would determine how the handling employees are performing and this will inform about the quality of the work as well. The employee's evaluation and monitoring would be done when the company receive any order from suppliers after the order is received; the company monitor the handling employees for better quality achievement. The production inventory handling would be evaluated and measured where the company stores its material or production inventory, so in stores the handling employees are responsible for the materials according to. Employees are the backbone of any business so taking care of the employees, training them and giving them access to the company resources will develop their skills and this will affect the quality of the handling of the material by the employees which in
turns will profit the business. Because as Hoyle (Hoyle, 2007) describe an organisation and defines organisation and that without customers the organisation doesn't exist, so quality in delivering a product depends on the organisation employees and without the organisation employees knowledge of handling the production process the organisation will not perform well and quality will be affected and reduced so as described earlier employees are stake holders and a resource to the organisation.
References Christoph H. Loch, Stephen E. Chick, Arnd Huchzermeier (2008) Management Quality and Competitiveness: Lessons from the Industrial Excellence Award. Berlin Heidelberg: Springer-Verlag. pp. 30-32 David Hoyle (2007) Quality Management Essentials. 1st Ed. Great Britain: Elsevier Limited. pp. 7 Donald H. Sheldon (2004) Achieving inventory accuracy: a guide to sustainable class a excellence in 120 days. United Sates of America: J. Ross Publishing, Inc. pp. 85-87 Donald Waters (2003) Inventory control and management. 2nd Ed. The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England: John Wiley & Sons Ltd. pp 197 Grahame Thompson and Ciaran Driver (2005) 'How to internationalize the corporate social responsibility agenda'. Stakeholder champions, 1(14), pp. 56-57 Kevin Baird, Kristal Jia Hu, Robert Reeve (2011) 'The relationships between organizational culture, total quality management practices and operational performance'. International Journal of Operations and Production Management, 31(7), pp 796 R. Edward Freeman (2010) Strategic Management: A Stakeholder Approach. Cambridge University Press. pp 6-7
doc_854111676.doc
A product is something that is made (produced) and often something that is sold. In Economics, things that one person has and another person wants are called goods. If the thing was made by people, then it is called a product. If it is something that was found in nature, then it is called a natural resource.
Management Study On Quality In Handling Of Production Inventory In Auto process Plc
Section 1: Business Area – Handling of production inventory Quality in production inventory is the raw materials and the supplied parts from suppliers and sellers to the factory AUTOPROCESS plc, where AUTOPROCESS plc uses these parts in its production process. But first these parts are stored as inventory or material and received by the material handling workers and employees so the production inventory/material includes all the parts or inputs that are received by the AUTOPROCESS plc and are used later for manufacturing, the whole process of receiving the parts and handling them affects quality in many dimensions. It includes some factors and attributes such as the sellers, customers and factors that are going to be mentioned in this report. The scope is defined as all the attributes related to quality in handling of the parts received buy the storage areas and the assembly areas and all the parties involved in the process. The business activity of handling production inventory has subareas and sub processes. The subareas include the receiving of the parts/production inventory/input from suppliers and storing, in addition and most important is registering the parts and documenting. Sub process, a process of making sure to maintain an accurate number or count of inventory by counting (Sheldon, 2004). Sub processes are similar and include many subareas that mentioned before and also include placing the inputs in correct order and on time delivery (making sure the parts are delivered by the supplier) verify the parts/production inventory and check if the correct order was made. Start
Order Placed
Receiving Area Storage Area/Shelves Use of Parts in Production
End
The handling of production inventory process and sub processes starts with placing an order from the supplier and making sure the order is correct and that the correct number is needed and that the inventory doesn't have that order so there won't be an excess of the material. Then the handling of the production inventory is received on the receiving area designated to that purpose, then the production inventory is taken to storage area/shelves and this is very crucial for the quality of the process. In the end of the handling process of the production inventory the material is then transferred to the production line or assembly and all this process is recorded and the data is kept in the IT department with all the relevant paper work.
Controls, receiving of parts/inputs classification and categorisation, sorting and storing
Input, production inventory from supplier
Handling of production inventory
Output, Inventory is accurate and well organised
Cost, of handling by employees and material department The diagram basically show how quality in handling production inventory is explained, we have the inputs which is the supply from the supplier to the company and the controls where the receiving of the production inventory/parts and the categorization, sorting and storing n appropriate place and storage areas is performed. On the other side, we have the cost of handling the production inventory, this include the cost of employees and the departments like the IT department which record all this process. The output is the accurate and well organised production inventory this is the main goal of the whole quality process. To evaluate the quality in handling of inventory productions many activities can be used some include: • Inventory management and recording material by physically counting the material
• • •
Materials are sorted correctly on shelves Prevent excess production inventory/material or shortage Monitor employees and material handling workers
Section 2: Stakeholders Owners of AUTOPROCES S plc
Suppliers of production inventory
Quality in handling of production inventory
Customers, LLM ltd
Employees who handle production inventory and the departments Stakeholders Diagram (Freeman, 2010) The involved stakeholders are the company's AUTOPROCESS plc material production inventory handling employees who are involved directly in the handling process of the parts/production inventory/inputs and the IT department which in turn takes responsibility to record all the data and all the transactions of ingoing and outgoing production inventory that the company make and record and inventory shortage or excess in order to take appropriate action by either ordering or use what is available. Another stakeholder is the Large-motors-manufacturer (LMM) ltd, because this is the customer that AUTOPROCESS needs to supply with its products, keep the customer satisfied and not get any penalties by delaying or supplying the wrong product. In order for AUTOPROCESS to have a quality in handling of inventory production so all the stakeholders should do or satisfy their job. So we have the owners/investors of AUTOPROCESS plc, the suppliers, employees who handle the production inventory and the customers, all the parties with power and influence on the decision making process and who have the right to control the organisation are stakeholders according to (Thompson and Driver, 2005) all these stakeholders affect the quality of the process. Impact of quality in handling of production inventory on owners is profit and revenue that the company makes, because the material is accurate and satisfies the orders placed by the customers then the company is profitable. The suppliers affect also the
quality in handling of production inventory because if the supplied parts were delivered on time and with no delay then the product is processed on the assembly lines and shipped on time so time plays a great roll and it's an important factor that should be considered in quality. Employees include all the employees involved in handling of production inventory from the employees who physically receive the parts/inputs/production inventory from suppliers and also includes employees who handle the parts and place them in storage areas to employees who record the work and deal with the paper work and all the departments involved in the process all in all affect the quality of the process. Customers are one of the major stakeholders because if the product is delivered on time there was no shortage or delay the customer is happy and satisfied and there won't be and penalties on neither the company nor the company will lose the customer. The handling of production inventory or material in the right manner effects the production which affects the supply to the customer according to (Freeman, 2010).
Section 3: Quality attributes why, how, when and where Inventory management and recording, this attribute is important because demand patterns should be checked and the demand for each period overtime should be made available, also, big part of inventory management is supplier information, which is all the related information regarding the material, such as, the product supplied, quality, reliability, trading history and payment method In addition, product details which include the specification of the product and the detailed description plus the catalogue, transport is also an important factor, if the product need special transport vehicles or conditions all these attributes affect the quality (Waters, 2003). So in order to achieve best quality in all the aspect of the business this attribute should be considered and done in a correct manner. The level of quality can't be achieved until the inventory management is done and satisfied completely by the employees. Inventory management, recording material and calculating quantities are important so not to have errors when placing an order from the customer. The management of production inventory/material is important because the company will stay updated on what material it has in store and what is missing or in shortage. This attribute is an important measure of quality because as the company know the exact number of material the company take orders from customers and meet deadlines, also the company can know the exact cost based on material it handles and how much money is spent on production inventory management for example the wages of the handling employees. The counting would be measured first before the delivery then when handling the quantities would be counted before storage, it would be measured in the supplier side and then measured again on the receiver side so there would be a high quality in the handling process of the production inventory/material ( Baird et al 2011). Also, this attribute would be measured by performing a checklist and determine what is missing or needed. Optimum storage layout means that a perfect storage facility should be established that is achieved by inventory being stored in logical order and employees have easy access to the material for future checks of material availability (Sheldon, 2004). Production inventory should be stored correctly on shelves because it affects quality on many angles. The quality in handling can't be achieved completely unless the material is stored in the right format and order the quality of handling the inventory would be maximized if the inventory or material is sorted out in a formal easy to recognise form. First quality of service and handling, it requires less time to search for the parts if they are stored in order correctly which means less cost of operation to the company. When
handling the production inventory the handling can be measured by supervisors who will take notes of the whole process and document it on paper to compare how the employees performing in handling and to improve the quality of handling of the production inventory. The storage would be would be measured at all the receiving points before the receiving of the parts and storing them, the handling would be measured at the stage of sorting so it would be measured at the stores and the shelves areas of the company. Prevent excess of material or shortage of material, this attribute is extremely important for the company quality measures. As material is reaching a level where the company can't satisfy orders from customers this impose a heavy loss of profit on the company. Also, the material in excess which is old may not be useful to it's date expires because the parts/material degrades due to weather conditions for example which will make the company lose money and will affect the quality of its production. This attribute would be measured through keeping records of all the incoming and outgoing material from the storage area so the employees responsible for handling of the production inventory or material must keep a record and this record should be passed to the sales department. The attribute would be measured before the purchase department makes any purchase and the department will check first if production inventory are available in stores by checking with the handling employees. The attribute would be measured at any point in the company's production stage because it's important to know the quantity required. Monitoring employees and production inventory handling workers because employees work physically with the material and by monitoring them this would tell the company how they are performing and if handling of production inventory is done correctly within schedule and within the correct work conditions as advised by (Loch et al 2008). The attribute can be measured through the periodic review of job, managers and supervisors can do weekly or monthly reviews of the handling employees work. Good trained employees who are trusted and can fulfil the task given to them produce better production which delivers more customer satisfaction which increases profit. The assessment would determine how the handling employees are performing and this will inform about the quality of the work as well. The employee's evaluation and monitoring would be done when the company receive any order from suppliers after the order is received; the company monitor the handling employees for better quality achievement. The production inventory handling would be evaluated and measured where the company stores its material or production inventory, so in stores the handling employees are responsible for the materials according to. Employees are the backbone of any business so taking care of the employees, training them and giving them access to the company resources will develop their skills and this will affect the quality of the handling of the material by the employees which in
turns will profit the business. Because as Hoyle (Hoyle, 2007) describe an organisation and defines organisation and that without customers the organisation doesn't exist, so quality in delivering a product depends on the organisation employees and without the organisation employees knowledge of handling the production process the organisation will not perform well and quality will be affected and reduced so as described earlier employees are stake holders and a resource to the organisation.
References Christoph H. Loch, Stephen E. Chick, Arnd Huchzermeier (2008) Management Quality and Competitiveness: Lessons from the Industrial Excellence Award. Berlin Heidelberg: Springer-Verlag. pp. 30-32 David Hoyle (2007) Quality Management Essentials. 1st Ed. Great Britain: Elsevier Limited. pp. 7 Donald H. Sheldon (2004) Achieving inventory accuracy: a guide to sustainable class a excellence in 120 days. United Sates of America: J. Ross Publishing, Inc. pp. 85-87 Donald Waters (2003) Inventory control and management. 2nd Ed. The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England: John Wiley & Sons Ltd. pp 197 Grahame Thompson and Ciaran Driver (2005) 'How to internationalize the corporate social responsibility agenda'. Stakeholder champions, 1(14), pp. 56-57 Kevin Baird, Kristal Jia Hu, Robert Reeve (2011) 'The relationships between organizational culture, total quality management practices and operational performance'. International Journal of Operations and Production Management, 31(7), pp 796 R. Edward Freeman (2010) Strategic Management: A Stakeholder Approach. Cambridge University Press. pp 6-7
doc_854111676.doc