1. Supply-chain management – It talks about the threshold questions such as “what is to be made” and “what is to be purchase.” In this case, buyer and seller relationship exists. Mutual trust and confidence are present between the seller and buyer which are vital for a transaction to be closed of successful. 2. Scheduling – it talks about feasible and efficient schedule of production such as proper allocation of time that is segregated from one activity to another. Proper management is the very big reason of business survival. In such a case, in production, an example, a “time table” must be developed for everything to be in placed such as the start and end of the production, the time of delivery of raw materials, delivery of finished goods to customers, and proper recording of transactions. 3. Inventories – These decisions can be optimized only when customer satisfaction, suppliers and human resources are to be considered. Enough and safety stocks must be developed to put the supplies or goods still available in case of imminent situation. 4. Maintenance – this decision must be made regarding desired levels of reliability and stability which are essentials in business survival nowadays. Reliability and stability is not only talking about in the production level but to information as well. 5. Location selection – facility’s location design for both manufacturing and service is really a big factor in determining the firm’s success. It talks about the strategic location which could lead the business more profitable from one place to another. If investigation is necessary, conduct a feasibility study to know if the location is feasible. 6. Layout design – material flows, personal levels, capacity needs, technology decisions, and inventory requirements influence layout. Layout design must attract thee customers, suppliers, creditors and other stakeholders which could be a window of your business to success. 7. Process and capacity design – process options are available for product and service. Process decisions commit management to specific technology, quality, human resources, and maintenance. These expenses and capital commitments determine much of the firms basic cost structure. 8. Goods and services design – designing good and service defines in the transformation process. Cost, quality, human resource decisions are often determined by design decisions. Design usually determines the lower limit of cost and upper limits of capacity. 9. Human resource and job design – people are an integral and expensive part of the total system design. Thus, the quality of work life provided, the talent and skills required and their costs must be determined. 10. Quality – the customer’s expectation must be determined and policies and procedures. THREE PHASES OF MANAGEMENT PROCESS
1. Planning – this phase relates goal setting, define the project, and team organization. 2. Scheduling – this phase relates people, money, and supplies to specific activities and relates activity to each other. 3. Controlling – here the firm’s monitor resources, cost, quality and budget.
TWO TYPES OF FORECASTING APPROACHES
1. Qualitative approach – it is based more on expert opinion and judgmental, qualitative forecast usually doesn’t rely on history. The qualitative techniques in forecasting are jury of executive opinion and Delphi method. 2. Quantitative approach – it is mostly pertain to numbers or figures such as sales forecast, budget forecast, and figure projection or econometrics. SEVEN STEPS TO BETTER FORECASTING
1. Determine the use of the forecast – What objective are we trying to obtain? – to drive decisions about staffing, opening, rides availability and food supplies 2. Select the items to be forecasted – labor, maintenance and scheduling 3. Determine the time horizon of the forecast – Short time horizon – 1 to 30 days, Medium time horizon – 1 to 12 months, Long...