Managing Resources, Inventory Management and Supply Chains - Coursework Example

Report on managing resources, inventory management and supply chains Name: Institutional Affiliation: Report on managing resources, inventory management and supply chains Executive summary The methods involved in the involved in the management of resources is the Quality Function Development. It analyses mathematically the programming methods involved. The RQFD is used as major factor when calculating the product quality and its value to the intended customer. Further, Resource-Based View policy highlights the essential of the essential capabilities as the critical basis for the sustainability of competitive advantage. The Supply Chain Management originates entirely from the operational discipline, technology and information systems, marketing and logistics. It focusses entirely on the chain network followed by the commodity. Table of Contents Executive summary 2 List of acronyms 4 Introduction 5 MANAGING RESOURCES 5 Method in support of new product development. 6 Application 7 The Chain of Supply HRM 9 SUPPLY CHAINS 10 Lean Six Sigma in a Supply Chain Context 10 Supply chains meaning and the issues they accrue 12 The value added supply chain strategic decision framework 13 Supply Chain structure 14 The strategic decision framework 14 INVENTORY MANAGEMENT 15 Obsolete Inventory Management Accounting 17 Prevention 17 Rapid Disposal 18 Supply chain inventory management estimates 18 Conclusion 19 References 21 List of acronyms R-BV Resource-Based View SHRD Strategic Human Resource Development HRD Human Resource Development RQFD Resource Quality Function Development QFD Quality Function Development HRM Human Resource Management SCM Supply Chain Management LSS Lean Six Sigma MRP Material Requirements Planning ROP Re-Order Point MIP Mixed Integer Programming Introduction The management of resources involves the management of the risks involved and the resource quality purpose deployment. The choices made during the early phases of the manufacturing and production of a commodity are essential in evaluating the success of a business. Also, the inventory management of all the resources of the including the obsolete inventories influences the success and profits being made by the business. The inventory management is defined as the coordination and supervisory of storage and warehouse book of accounts that can be used by the company in the analysis of its functionality. It involves the balancing of the inventories and updating them in regularly. The supply chain entails the network in which a commodity follows as it move from the producer to the consumer. It details the structures followed by the commodity and the factors influencing it[Ter06]. MANAGING RESOURCES Managing commodityrisk,resources, and quality through resource quality purposedeployment The decisions made during the initial stages of the commodity development schemes are essential to their success. Such decisions made include allocation of resources, product quality and decision whether to continue or terminate the project[Yor08]. A new method proposed to provide detailed information and vivid description on the product, its engineering competences and organizational marketing. It is based on mathematical programming extensions of QFD (Quality Function Development). The method is called Resource Quality Function Development (RQFD)[CLa12]. It provides detailed information regarding planned quality product, resource allocation, resulting project risks, and the target market share by the new product. RQFD consents the study and appreciation its importance leading to a better understanding of the design choices and the design problem in focus. Fig. Product development process. Method in support of new product development. The assumption made by the method is that it a product idea is conceived through the market study exploratory. The information collected in the method provides the input to the RQFD. The process is more detailed through various sections of it[Ala08]. They include: I. Model development. It analyses customer requirements pertaining the product. It is undertaken through numerous information collection techniques including customers’ interpersonal interviews. It further provides the information from the survey in different market segments[Ant06]. They are: Marketing considerations: It analyses the proportion of the population which ranks each and every value following a multinomial distribution. Engineering considerations: The RQFD is used as baseline when calculating the product quality and its value to the intended customer. The total quality of a product is computed by the summation of the quality of product design for each market segment or group. II. Method utilization The product quality value can be solved through non-linear programming[Ant06]. Nevertheless, the market preferences by the various groups or market segments are uncertain or estimations. Application The method has been used to reduce and stabilize hand vibrations due to the nerve diseases and Parkinson’s disease. (RQFD) Resource Quality Function Deployment 1- Hinge 2- Linear solenoids for servo control 3- Electronic unit 4- Switch 5- Slit. For fast removal and binding 6- Display 7- Miniature accelerator 8- Soft contact to the skin Fig: The stabilizer[CLa12] The Human Resource Development (HRD) strategic role in management of coreCompetencies Strategy involves the establishment of suitable competitive environment. The (R-BV) Resource-Based View of strategy highlights the essential of the core competences as the critical foundation for the sustainability of competitive advantage. Strategic HRD (SHRD) review define R-BV as a basis for defining the role of HRD in organizational strategy[Mus14]. The SHRD analyses that the function of an organization’s HRD can be measured and profiled whether it is or it is not strategic[Ant06]. Further, it suggests a characteristic HRD outline includes several functions, including: Providing learning experiences to employees, managers and other personnel. It contributes to the organizational strategy through the inventory of employees pertaining strategic skills needed. The tactical roles and related actions of HRD in management of core competences include[Ter06]: Roles Actions I. Advisingon the procedure of tactical and strategic design Providing instructive asset on essentialcapability and technique. Education opportunities and assessment of techniques geared to essentialcapability. Evaluation of essentialcapability through aggressive knowledge Evaluation and examination for vital choice. II. Documentation and explanation of essential capabilities or competences Classify and study essential capabilities. Formulate the present key capability abilities levels. Cooperative capability's ethnographic training. Improve authoritative communal capital. Encourage learning in differing fields. Mountinga society that embraces technical innovations, risk taking and business. III. Guard essential capabilities Intricate and obscure advancement and education practices. Connect firmly the execution administration frameworks. Entrench the society with qualities and customs. Provide groups and gatherings with continuous upgrades and expertise systems for upkeeps. Promote representative distinguishing proof with the organization and their unwaveringness to it. Inspire the improvement and development of new capabilities within the firm The implication of the model is more immediate and obvious; however, it is potentially more risky. The listed roles and actions portrays how the HRD can manage the core competences[CLa12]. Those not in applications currently by firms can thereby be implemented in order to enhance the organization’s goals strategies. The Chain of Supply HRM The chain of supply in numerous associations has essentially advanced in the late decades. It is perceived today, among the hugest key capacities inside of the organizations' business system execution[Yor08]. Thus, with globalization, expansion in rivalry, innovative changes, and commoditization, the chain of supply have turned out to be exceptionally unpredictable. The research of the Supply Chain Management (SCM) originates entirely from the operational discipline, technology and information systems, marketing and logistics. The strategic HRM (Human Resource Management) derives majorly from works on HRM disciplines and strategy, focusing mainly on the strategy contributions. Therefore, neither the HRM discipline nor SCM discipline has worked adequately with the other in developing people competences and vital human capital with the chain of supply domain. The issues such as human performance, occupational profile for chains of supply and logistics professional needs to be addressed[Ter06]. Others are the interactions of management systems and human resource, requisite skills, the importance of trust in inter-organizational chains of supply. Through historical analysis, the key elements that have changed with the evolution of the chain of supply management are highlighted. They include; the continued outsourcing, the adoption of lean production practices and the globalization of chains of supply. Further, it establishes the impacts of the analysis on the need of its management across boundaries, skills of all personnel categories, and the creation and understanding of a broader skill profile. The impact entirely relates to the successful management of the complexity in the chain of supply[Mus14]. In the supply chain management, the relationship between the buyer and seller should entirely be cemented by trust. Trust influences the limit of the relationship and interactions between the main parties involved in the chain of supply[Edw02]. Further, trust moderates the supply risk encountered in the collaboration. SUPPLY CHAINS Lean Six Sigma in a Supply Chain Context Lean Six Sigma (LSS) is defined as the management methodology that can be employed by a firm in order to achieve a substantial improvement in the performance of supply chain. It integrates both the continuous improvement of lean production and customer focus with the quantitative consistency and project discipline of six sigma[Alb13]. Further, it enables the improvement of inter-organizational and intra-organizational processes of supply chain. Associations receiving the reconciliation of the LSS into their expansion structure procedure would have the capacity to enhance their effectiveness [Alb13]. The standards and instruments of the incline six sigma incorporates; Value stream mapping It portrays the flow of information and materials and categorizes the activities into three sections; value adding, value enabling and non-value adding[Ver14]. It focusses on eliminating identified non value adding activities in each stage and reduction of the waiting time between consequential stages. Takt time It alludes to the rate at which the finished activities requires to be finished keeping in mind the end goal to meet potential client requests. In the break down stage, the season of cycle is contrasted with the administration level understanding[Ter06]. If there should arise an occurrence of a disparity surpassing the resilience, enhancements are expected to coordinate both the process duration and the takt time. 5 whys and Diagram of the Cause and effect The absence of tangible data and information makes the identification of the cause a certain condition difficult. The 5 Whys and the diagram of the cause and effect makes the task and scenario more manageable. The 5 Whys uncovers both the areas that can be focused on and the process dynamics[SAM08]. Load Balancing It is incorporated in the phase of design. It introduces a pull in the entire system other than letting the system operate in the push principle. Also, it automatically reduces inventory. Furthermore, the usage of takt time principle in system design will ensure a level balanced load[Ver14]. Mistake proofing It is useful in the analysis in highlighting the major issues plaguing a process. The benefits associated with the application of the LSS in the chains of supply include; • Increased incomes • Growth of viable workers • Enhanced effectiveness • Amplified customer gratification • Diminished expenditures assimilated Supply chains meaning and the issues they accrue The inventory network includes every one of the gatherings straightforwardly or circuitously included in the contentment of a client demand. The chain of supply integrate the distributors and manufacturers as well as the distribution centers, retailers, transporters, and clients. Inside of the different gatherings, the production network contains every one of the capacities included in the filling and getting the client demands. The capacities incorporate; new item improvement, operations, fund, client administrations, showcasing and appropriation[Yor08]. The incorporation of clients in the supply's chain meaning gives a striking contrast between the SCM and logistics. SCM aim is the improvement of competitiveness of the supply chain of a product. The competition entirely is between the leading firms in the supply chain[Edw02]. They get the chance to dictate who does or does not belong to the supply chains they are involved in. furthermore, an organization may be a part of one or more supply chains and have entirely a different objective from the other players in that supply chain. The examination of both the supply network and the SCM is valuable in the understanding, administration and preparation of the present and future, creation, supply, recuperation, and dissemination frameworks (Corominas, 2013). In addition, the SCM and the supply network shape the premise of logistic deals advancement, research, data gathering, item plan, item improvement, and the quality investigation[Ala08]. The idea of inventory network underlines on the relationship's centrality between the clients and suppliers of a certain item in the business sector. The challenges faced by organizations while establishing an analysis in the chains of supply and the SCM includes[Edw02]: Design: The organization lacks the tools and methods to design supply chains. The supply chains entirely entails the networks and a times the global network of an organization’s product. Uncertainty: There is uncertainty during the design and management of any logistic or production system. It could concern the evolution or demand of a technology. Risk management: A supply chain running globally faces risks emanating from nature, human agents either externally or within the organizations itself. Integration: There is a need to integrate the decisions made corresponding to the areas of diverse functionalities. Corporation and coordination. Harmonization of Objectives: The diversity of the supply chains results in different specific objectives which totally needs harmonization in order to co-relate. The measure of supply chain performance: There are no predefined measure and methods to access the performance of any supply chain[CLa12]. The value added supply chain strategic decision framework The entire structure of a supply chain are critical decisions that a manager needs to make, even though, they are becoming more complex. The effects involved dramatically affect the customer satisfaction, the cost, and the ability of an organization to respond to the changes in the market. Furthermore, the affect the ability of an organization to innovate and introduce new products in the market. They also have important implications on both the short term and long term goals of profitability. A supply chain desires to add a positive value to the business[Alb13]. Supplier differ on flexibility, innovative capability, improvisation ability, distance, quality, resilience, integration and relationship, reliability and coordination. They also differ in environmental performance, credit terms and capabilities[Ter06]. Therefore, it becomes a challenge to an organization in the selection of a supply chain partner. Supply Chain structure An example of a model used in analysis of the supply chain structure is the mixed integer programming (MIP). The model employs mathematical programming modes in order to provide an insight on the supply chain structure[Edw02]. It is based on minimization of costs accrued in the process of getting the product to the intended customers. Where ci-the acquisition cost of product[Ter06] z- Quantity i- supplier fi- fixed cost xi- binary variable si- maximum capacity that can be supplied The strategic decision framework The supply chain explicitly complements the strategic objectives of the organization in order to offer a chance for sustained performance and success. The strategic decision frameworks entails the following structure[Mus14]. Fig. Strategic decision framework[Mus14]. INVENTORY MANAGEMENT The practices Inventory management and their implications on the perceivedperformance of planning It involves the balancing of both demand supply in the market. It focusses on the initiation, monitoring and the control of purchasing orders and manufacturing in order to uphold uninterrupted flow of materials. A number of planning methods are available. The control the flow of materials in different ways, including; fixed order interval, re-order point, Material requirement planning and Kanban methods. The material planning methods however includes some planning parameter, planning parameter for instance order quantities, lead times and safety stocks[Ala08]. The widely used method of material planning for dependent demand is the material requirement method. The other methods including the fixed order interval, re-order point, kanban and run-out time planning methods are used for the independent demand[Ver14]. With the research on the application of the various material planning methods adopted by the various organizations in the various segments, a relationship is established[SAM08]. The relationship portrays how the planning parameters, inventory types, planning performance and the manufacturing planning environment interrelates. Fig. proposed relationship between planning parameters, inventory types, planning performance and the manufacturing planning environment[Yor08]. The most used material planning method for the control of material flow to the manufacturing companies’ inventories is the MRP, followed by ROP. However in the distribution operation inventories, the ROP, kanban, run-out time planning and the fixed order interval methods are widely used[Mus14]. The kanban and MRP method results in the better overall performance as compared to the other methods of inventory management[Yor08]. Furthermore, the MRP relies more on the quality of the inventory management and planning information. The issues to consider while in choosing the method of material planning relates to the following three phases[Mul03]: The planning environment and matching method. The designing material method of planning Using of the material planning method Obsolete Inventory Management Accounting The availability of a large quantity of finished products in the warehouse for a long period needs to be written off as expense incurred by the organization in the books of obsolete inventories[Yor08]. Inventory management accounting facilitates and serves the purpose of better control of inventories by the organization. The settlement of inventory accounts is a crucial part in the work of accounts[Mus14]. The companies can either manage the inventory accounts basing on the periodic or perpetual inventory systems. The perpetual inventory system requires the updating of the inventory account status each time the firm purchases, sales or any other adjustment in value[Mul03]. On the other hand, the periodic system is less accurate and intense in comparison to the perpetual inventory system and require the update of the inventory status after period. A separate account is created to record the inventories and equated to the actual inventory balance[Mul03]. The obsolete inventory accounting implies the section of the prevailing inventory that is neither used nor sold as finished goods or service. It may be caused by: An item no longer purchased Items that cannot be utilized in the process of manufacturing The change in product design through development of new technologies’ The rapid obsolesce of items Prevention The various factors the management of a firm embrace on in order to control and prevent obsolete inventory includes[SAM08]: Regular scheduling of reviews on obsolete inventories Review perpetual records of inventories. Review the physical storage methods Review bills of materials Relate the historical usage to on-hand inventories of products Relate re-order points to purchase requisitions Rapid Disposal The various factors the management of an enterprise can adapt in order to rapidly dispose appropriately the obsolete comprises of: Returning goods to the supplier Auctioning of the products Utilize the obsolete inventories for several warrant repairs and replacements Donate the products to charity Steps to be followed in order to establish an obsolescence reserve comprises of[SAM08]: 1. Identification of book value of the products 2. Estimation of the predictable disposal value of the products. 3. Subtraction of the predicted disposal value for the specific products 4. Keeping the two reserve differences Supply chain inventory management estimates There are different estimation procedures used in the chain of supply inventory management. The forecasting procedure produces different results which thereby affects the management of the organization entirely[Mus14]. An example is the difficulty in establishes when and where should the lead time estimates be introduces during the computation of the demand variance. Lead-time demand: It is defines as the summation of the variable demand to the variable lead times. It is the anticipated level of demand of a commodity from the consumers through the suppliers to the retailers[Alb13]. Lead time: It is the period between time taken by a supplier to supplier the commodities ordered to the time another ordering opportunity arises[Ver14]. The distinctive techniques in estimation routines for supply chain stock parameters could prompt drastically diverse results. For instance, the consideration of lead time unequivocally in the examination, as opposed to subsuming it into the mean's estimation and standard deviation of interest amid lead time. It would thereby blow up the bullwhip impact and prompt excessive inventories. Additionally, the way a production network is broken down causes an effect. It is due to the fact that successively build firewalls inside of production network have a tendency to constrict any glimmer surges that could clear through the whole framework[Ver14]. Additionally, important is the marvel of uneven interest at the higher echelons of the network of supply. It implies that the interest arrangement is portrayed by one irregular string of positive requests, trailed by an arbitrary string of zero requests, when negative requests are not permitted. Exponential smoothing of the whole arrangement of information performs inadequately in the circumstance. Also, it performs as the ordinary anticipating system that sets the request up-to levels is as a rule of exponential smoothing[Edw02]. It could prompt expansion of the mean outright deviation and the wellbeing stocks. Conclusion The analysis of the chains of supply a company embraces after the production of its commodity influences the size of the market share it commands. The mixed integer programming model provides the procedure involved in the study of the chains of supply. Further, the application of the Lean six sigma expands the performance of the chain of supply of the company. Thereby, it is advisable for the company to employ the LSS in order to improve its performance[Yor08]. Keeping of the inventory accounts improves the analysis of the company’s performance. It details that the obsolete commodities in the store be recorded in the books of account as expenses incurred by the company. Further, the estimate of the lead time demand thereby calls for its usage in the determination and forecasting of its effects on management. The management of a company’s resources involves the use of resource quality function development. The application of the method provides detailed information regarding planned quality commodity, resource allocation, resulting scheme risks, and the target market share by the new commodity. References Ter06: , (Harrison & Chatfield, 2006), Yor08: , (Reich & Paz, 2008), CLa12: , (Lakshman, 2012), Ala08: , (Clardy, 2008), Ant06: , (Kelly, 2006), Mus14: , (Canbolat, 2014), Edw02: , (Frazelle, 2002), Alb13: , (Corominas, 2013), Ver14: , (Vermorel, 2014), SAM08: , (Mattson & Jonsson, 2008), SAM08: , (Mattson &Jonsson, 2008), Mul03: , (Muller, 2003), Read More