This week’s reading is about total quality management and quality improvement. Total quality management pertains to managing the entire organization so that it excels on all dimensions of products and services that are important to the customers. This is an important task in a business. Continuous improvement on the product when it comes to design and quality will make the customer happy and satisfied. This concept was developed during the 1980’s when Japan’s automobile exceeded the superior quality of the American vehicle. The chapter also talks about the ISO 9000 and ISO 14000. ISO 9000 has become an international reference for quality management requirements in business-to-business dealing, while the ISO 14000 is primarily concerned with environment management.
What are production-planning strategies and how might you incorporate them into your daily activities? Which strategy would be most appropriate for your organization?
Production planning strategies incorporates a multiplicity of production elements, ranging from the everyday; staff to the ability to realize accurate delivery times for the customers. Its purpose is to minimize production time and costs, and efficiently organize the use of resources and maximizes efficiently workplace.
There are three (3) essential production planning strategies:
1. Chase strategy – match the production rate to the order rate by hiring and laying off employees as the order rate varies. Some of the advantage of chase strategy is keeping the inventory low, which frees up cash that can be used to buy raw materials or components, and reduces inventory costs such as cost of capital, warehousing, depreciation, insurance, taxes, obsolescence and shrinkage.
2. Stable workforce – variable work hours – vary the output by varying the numbers of hours worked through flexible work schedule or overtime. This strategy provides workforce continuity and avoids many of the emotional and tangible costs of hiring and firing...