AS Business 2013 Inventory Management, including Just in Time (JIT)

Slides:



Advertisements
Similar presentations
What other terms can you think of when talking about Procurement and Inventory Management?
Advertisements

4AS.3. Inventory Management Objectives – What is inventory? – Why do companies need to keep inventory? – What are the costs of not having inventory? –
Management in Organisations Inventory. Supply chain management Types of Inventory Dependent and Independent Demand Benefits of Inventory Control Make.
Productive Efficiency
O.M. One of the key aims of prod.plann.is to minimize the costs of holding stocks whilst ensuring that there are sufficient resources for production to.
presented by: Kritika chhatwal
5.6 Production Planning The last one!!. The cost of STOCKS Stocks are materials and goods required to allow the production and supply of products to the.
JIT Stock Control No buffer stocks, components arrive when needed Supplier relationships have to be excellent Production staff must be multi-skilled.
Achieving Operational Excellence Enterprise Applications Business Information Systems Laudon & Laudon Ch.8 (P.266)
Achieving Operational Excellence Enterprise Applications Business Information Systems Laudon & Laudon Ch.8 (P.266)
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
INVENTORY MANAGEMENT Stockpile of the product, a firm is offering for sale and the components that make up the product. The management of inventory.
Stock Management Lesson 2.7 – Year 12 Business. 1.Raw materials and components - these are waiting to be used in the production process 2.Work in progress.
MultiMedia by Stephen M. Peters© 2001 South-Western College Publishing Saturday, November 2nd Topic: Production Management, Quality & Efficiency Midterm.
Chapter 5: Production Factors of Production
5.7 Production Planning Chapter 36.
Topic 5 – Operations Management Production Planning.
Inventory Management. Inventory Inventory or stock are the materials and goods required to allow for the production of supply of products to the customer.
Stock Control Today you will know what stock control is.
Unit 2 Operations Management Session 5 Stock control.
Production Capacity & Efficiency
5.1 Production Methods IBBM.
Introduction Operations Management Intermediate Business Management.
Inventory. What is Inventory? Goods held on hand for the production process or for resale.
Unit 5 Operations Management Production Methods. Learning Objectives To describe and compare the features and applications of job, batch, line, flow and.
BM Unit 2 - L051 Higher Business Management Unit 2 Learning Outcome 5 Operations.
Inventory Management. Introducing the topic The Shocking cost of Holding Inventory Read Case Study, Answer the questions on paper…. Page 419.
Specification section 3.1
Stock Operations Management Intermediate Business Management.
Inventory/Purchasing Questions
CAD CAM CADMAT A2 Graphics. CADMAT We will look at … We will look at … CADMAT CADMAT –Computer aided design, manufacture and Testing PDM PDM –Project.
AS Operations Management Productive Efficiency. Operations Management Recap… The process that uses the resources of an organisation to provide the right.
Inventory. Objectives Define inventory Identify the types of inventory Explain why inventory control is needed Identify the various types of computerized.
Introduction to Operations Management McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Starter. Objectives Recap key CPA items Define lean production Using two examples explain how CPA can be used to achieve Lean Production.
Chapter 1 Forecasting for Management Decisions
Operations Management $100 Production Method Cost and Revenue Quality Assurance Location Production Planning $200 $300 $400 $500 $400 $300 $200 $100 $500.
Chapter 12 – Independent Demand Inventory Management Operations Management by R. Dan Reid & Nada R. Sanders 2 nd Edition © Wiley 2005 PowerPoint Presentation.
Inventory Management for Independent Demand Chapter 12.
3.4 How do businesses operate1 How do Businesses Operate? 3 stages: inputs  process  output What is Production? the making and providing of both goods.
Operations Management Department of Managerial Sciences Georgia State University.
Building Competitive Advantage Through Functional-Level Strategies
Teamwork Presentation on JUST IN TIME” METHOD World Wide Science, Online MBA Program 25 June 2011 Head of Group: Head of Group: Ahmad Shikeb Farazi Ahmad.
Inventory Management for Independent Demand Chapter 12, Part 1.
Chapter 5 - Production Improving Productivity. REVIEW  What are the 6 factors of productivity ?  Natural resources, raw materials, labour, capital,
Production Planning(HL)
Chapter 4 Inventory Management. INVENTORY MANAGEMENT Stockpile of the product, a firm is offering for sale and the components that make up the product.
Methods of Production GCSE Business Studies. Methods of Production Job Batch Flow Just in Time (JIT)
Inventory Management Definition: STOCK:
Production planning Chapter 36. The cost of ‘holding’ stock It is commonly accepted that the cost of holding stock is between 4% - 10% of the stocks value.
Chapter 7 Pages Supply chain management – the process of integrating and planning, implementing and controlling the systems of organisations,
Lean Production Just in time - It originally referred to the production of goods to meet customer demand exactly, in time quality and quantity, whether.
Lean production  Philosophy that aims to produce more using less by eliminating waste.  Minimises key business resources: materials, manpower, capital,
Operations Planning We have looked at Operations Management, who deal with the production inputs for a business: Land Labour Capital So, what is Operations.
Chapter 6 Inventory Control Models 6-1
5.7 Production Planning Chapter 36.
Higher Business Management
Operations Activities
Operations Research Lecture 11.
Higher Business Management
LEARNING OBJECTIVES Highlight the need for and nature of inventory
Chapter 4 Inventory Management.
OPERATIONS MANAGEMENT
presented by: Kritika chhatwal
4.3 Increasing efficiency and productivity
ERM Systems.
Building Competitive advantage through functional level strategies
Japanese Production Methods
Building Competitive advantage through functional level strategies
Building Competitive Advantage Through Functional-Level Strategies
Presentation transcript:

AS Business 2013 Inventory Management, including Just in Time (JIT)

Inventory Management Objectives – What is inventory? – Why do companies need to keep inventory? – What are the costs of not having inventory? – What are the costs of having too much inventory?

Inventory Management Inventory (stocks) = materials or goods required to allow for the production and supply of products to the customer Three types of inventory: – Raw materials – Work in progress. – Finished goods.

The Production Process Inputs Resources Land Capital Labour Enterprise Production Processes Outputs Finished goods and services Waste Value added reinvested into inputs or marketing, research and administration

Inventory Management A4 Paper at Cambridge College

What are the costs of holding inventory Warehousing Opportunity cost Theft Damage Obsolescence And others……

Why do companies have inventory? Avoid lost sales Avoid idle production Special (emergency) orders are expensive Purchasing economies of scale. There are others…….

Total Stock Holding Costs

Controlling Stock

FOR WED AND THURS WITH SUBSTITUTE – 20 MARKS Activity 22.2 Page 425 Revision questions page – 1,3,4,5,6

JUST IN TIME STOCK CONTROL X

Just-in-time (JIT) What is Just-in-time? – Stock control method aims to avoid holding inventory by requiring suppliers to deliver just as parts are needed Why do companies use it? – Aims to reduce inventory holding costs by not holding any inventory, and at the same time avoiding the costs of not holding stock

Just-in-time (JIT) GoodBad No costs of holding stock. Expensive to set up. If anything goes wrong the whole manufacturing operation can stop dead!

Just-in-time (JIT) Needs of Just-in-Time – Excellent relations with suppliers. Suppliers to be reliable and committed Located nearby Communication with suppliers to be excellent – IT – Accurate forecasts of demand Which parts do we need and how many? – IT Computers to control ordering.

Just-in-time (JIT) Needs of Just-in-Time (continued) – Machinery Flexible to switch between products – Quality is essential No spare parts so all parts must be perfect. – Staff Skilled and trained Committed Good relations between management and employees

FOR WED AND THURS WITH SUBSTITUTE Activity 22.3 page 426