Controlling Operating Costs
The basic requirements for controlling operating costs include technology embracement, outsourcing, efficient shopping, telecommuting, paying invoices regularly, identifying useless processes, canceling power-consuming measures or services, considering ecological decisions and strategies. All the actions mentioned above might reduce the manufacturing expenses of any company. They must be followed to maintain an effective working process organization.
Quality from the Perspective of a Manager
Quality is a concept of specific organizational standards that must be met by every employee to ensure reliable services to their customers (Chen & Tan, 2013). Operations managers should control the working process performed by every auxiliary. This gives people an understanding of the basic needs necessary to release high-quality final products.
The following list will enumerate the eight common dimension of design quality:
- Perceived Quality.
The concept of quality assurance implies the prevention of various defects or mistakes during the manufacturing process. Also, it is helpful in avoiding common issues and delivering useful solutions to customers. Such a strategy aims at gaining permanent clients’ respect for the companies that follow the rules mentioned above.
Total Quality Management
The concept of total quality management describes managers’ attempts to satisfy their customers and make their organizations successful for an extended period. In particular, people who are in charge of some production departments must improve their processes on a regular basis. Moreover, it is necessary for them to develop the culture and philosophy of their teams.
Continuous improvement is a term that implies constant changes in a manufacturing process aimed at making produced materials of better quality. Kaizen is a Japanese philosophy focused on a regular perfection of production processes, development, and other business operations. Six Sigma is a conception that implies the necessity of minimizing defects and static imperfections in operational activities (Drohomeretski, Costa, Lima, & Garbuio, 2013). Lean manufacturing is an ideology of management that is intended to reduce all possible losses and wastes. Quality at the source is a requirement to check certain products during several phases of their creation.
Approaches to Quality
ISO 9000 ensures high-quality products, but it does not guarantee the same of a manufacturing process (Huo, Han, & Prajogo, 2014). In turn, ISO 14000 obligates companies to meet particular ecological requirements (environmental management system). Zero Defects is a management approach to reducing various issues in the processes of industrial manufacturing.
Both inspection and testing are the two major types of quality control. Inspection implies the detection of various imperfections in work (Mellat-Parast, 2014). Although testing has the same purpose, it includes the analysis of a products’ functioning.
The following list will enumerate the major reasons for carrying inventories:
- Ensuring smooth production.
- Providing immediate customer services.
- Facilitating manufacturing during lead time.
- Facilitating the utilization of workforce and equipment.
- Enjoying the discounts on large scale purchasing.
- Enabling economic and efficient operations.
Just-in-time inventory implies the provision of necessary supplies or raw material as it is needed in manufacturing (Chen & Tan, 2013). This saves many finances of transnational companies. Such a strategy also reduces the waste of usable goods.
ABC is a grading system that gives employees an understanding of how various processes or items are important. Hence, A is the essential phase, B is moderate, and C is relatively crucial. This classification is useful for organizing managing inventories.
The EOQ Concept
The concept of economic order quantity is focused on minimizing overall ordering and holding expenses. This model requires managers to order necessary goods only when their demand is known (Shekarian, Olugu, Abdul-Rashid, & Kazemi, 2016). Also, it is advantageous to understand the product’s realization period.
The basic purposes of material requirements planning are the following:
- Satisfying needs in materials, and other components essential for production processes.
- Maintaining the lowest amount of supplies.
- Planning manufacturing operations, delivery, and shopping lists.
Chen, Z., & Tan, K. H. (2013). The impact of organization ownership structure on JIT implementation and production operations performance. International Journal of Operations & Production Management, 33(9), 1202-1229. Web.
Drohomeretski, E., Costa, S. E., Lima, E. P., & Garbuio, P. A. (2013). Lean, Six Sigma and lean Six Sigma: An analysis based on operations strategy. International Journal of Production Research, 52(3), 804-824. Web.
Huo, B., Han, Z., & Prajogo, D. (2014). The effect of ISO 9000 implementation on flow management. International Journal of Production Research, 52(21), 6467-6481. Web.
Mellat-Parast, M. (2014). Linking quality citizenship to process design: A quality management perspective. International Journal of Production Research, 52(18), 5484-5501. Web.
Shekarian, E., Olugu, E. U., Abdul-Rashid, S. H., & Kazemi, N. (2016). An economic order quantity model considering different holding costs for imperfect quality items subject to fuzziness and learning. Journal of Intelligent & Fuzzy Systems, 30(5), 2985-2997. Web.