The manager of Quality Parts Company is aiming to do precisely that by planning to appoint three inspectors to clean up the quality problem. She also contemplates adding a setting up a rework line to speed repairs. This is a disastrous idea that piles up the cost element of manufacturing. It also compromises on quality in the first place because when a new line for rework is added to the works the attention of the workers would be slanted more towards rework instead of a perfect first attempt manufacture.
In forecasting demand, two methods can be applied- the push effect got as a result of demand forecast or the "pull" effect as Kanban exemplifies. The actual demand of the consumers is calibrated and production done accordingly. Kanban best suits a condition when the supply time is prolonged and the supposed demand is rather difficult to predict; the production then has to be done in response to the consumer's demand or 'pull'.
Adoption of this methodology will cut down on the inventory costs because goods are procured as and when there is a pull by the consumer. The production facility becomes Just in time. The production process starts at the instance of a product being sent out of the factory. So, the process is upstream.
Quality parts system makes basic errors in maintaining quality. ...