Concept Application of Concept in the Simulation Reference to Concept in Reading
Total Quality Management
“Inventory management involves planning and controlling inventory from the raw materials stage to the final delivery at the customer’s end. They need to manage their production schedules efficiently in order to keep their commitments to the customer.” (Managing Inventory in a Supply Chain Simulation, 2008)
Kuiper Leda needs to understand how to manage various types of inventory in a way that will optimize inventory while enabling their organization to stay competitive. Leda is doing this by enabling their activities to reduce cycle time and costs. “Total quality management may be defined as “managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.” It has two fundamental operational goals, namely:
1. Careful design of the product or service.
2. Ensuring that the organization’s systems can consistently produce the design.
These two goals can only be achieved if the entire organization is oriented toward them— hence the term total quality management.” (Chase, Jocobs, Aquilano, chapter 8, 2006)
The production line approach
“The company has recently entered into another product line – Radio Frequency Identification Devices. They now have installed a new production line for Radio Frequency Identification Device (RFID) Tags. The line has been in operation nearly six months.” (Managing Inventory in a Supply Chain Simulation, 2008)
Leda’s production line can handle a capacity of 1250 units of Electronic Control Units, and 250 RFID units. By using a consistent production line approach it has proven its abilities to its customers and competitors by offering quality products to market and quick delivery responsiveness.
“The production-line approach pioneered by McDonald’s refers to more than just the steps required to... [continues]
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(2008, 11). Mba 550 Managing Inventory in a Supply Chain Concepts Worksheet. StudyMode.com. Retrieved 11, 2008, from http://www.studymode.com/essays/Mba-550-Managing-Inventory-Supply-Chain-184624.html
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