tailieunhanh - Lecture Principle of inventory and material management - Lecture 2

The wealth of a country is measured by its gross national product—the output of goods and services produced by the nation in a given time. Goods are physical objects, something we can touch, feel, or see. Services are the performance of some useful function such as banking, medical care, restaurants, clothing stores, or social services. But what is the source of wealth? It is measured by the amount of goods and services produced, but where does it come from? Lecture 2 - Introduction to Materials Management. | Lecture 2 Introduction to Materials Management Books Introduction to Materials Management, Sixth Edition, J. R. Tony Arnold, ., CFPIM, CIRM, Fleming College, Emeritus, Stephen N. Chapman, ., CFPIM, North Carolina State University, Lloyd M. Clive, ., CFPIM, Fleming College Operations Management for Competitive Advantage, 11th Edition, by Chase, Jacobs, and Aquilano, 2005, .: McGraw-Hill/Irwin. Operating Environment Government Economy Competition Quality Order qualifiers Order winners Delivery Lead Time Engineer to order Make to order Assemble to order Make to stock Supply Chain Concepts 1970’s JIT (Toyota) 1980-90’s Enterprise Resource Planning (ERP) Currently Supply Chain Management (SCM) Flow of Materials, information, and $$$$$$ Suppliers’ Suppliers Direct Suppliers Producer Distributor Final Consumer Conflicts in Traditional Systems Four Main Objectives to get most Profit: Provide best customer service Provide lowest production costs Provide lowest inventory . | Lecture 2 Introduction to Materials Management Books Introduction to Materials Management, Sixth Edition, J. R. Tony Arnold, ., CFPIM, CIRM, Fleming College, Emeritus, Stephen N. Chapman, ., CFPIM, North Carolina State University, Lloyd M. Clive, ., CFPIM, Fleming College Operations Management for Competitive Advantage, 11th Edition, by Chase, Jacobs, and Aquilano, 2005, .: McGraw-Hill/Irwin. Operating Environment Government Economy Competition Quality Order qualifiers Order winners Delivery Lead Time Engineer to order Make to order Assemble to order Make to stock Supply Chain Concepts 1970’s JIT (Toyota) 1980-90’s Enterprise Resource Planning (ERP) Currently Supply Chain Management (SCM) Flow of Materials, information, and $$$$$$ Suppliers’ Suppliers Direct Suppliers Producer Distributor Final Consumer Conflicts in Traditional Systems Four Main Objectives to get most Profit: Provide best customer service Provide lowest production costs Provide lowest inventory investment Provide lowest distribution costs Conflicts in Traditional Systems Is there any conflict in the objectives of best customer service, lowest production costs, and lowest inventory investment? Why? How can the conflicts be managed? Conflicts in Traditional Systems Marketing Maintain high inventories Interrupt production runs Create extensive and costly distribution system Finance Reduce inventory Decrease plants and warehouses Use long production runs Manufacture to customer order Production Make long production runs Maintain high inventories of raw materials and WIP What is Materials Management? The grouping of management functions supporting the complete cycle of material flow, from the purchase and internal control of production materials to the planning and control of work in process to the warehousing, shipping, and distribution of the finished product APICS Dictionary, 8th Edition Management Make/Buy Considerations lower production cost unsuitable suppliers assure adequate supply