OPERATIONS AND SUPPLY CHAIN MANAGEMENT 5
Operationsand Supply Chain Management
Operationsand Supply Chain Management
Operationand supply chain management (OSM) is applied in organizations to helpmanage operations in governments and business. Similarly, operationsrefer to the process where an organization transforms raw materials,capital, and labor into a service or final product. Therefore, theprincipal purpose of the research paper is to examine what is meantby lean production and lean supply chain in an organization anddiscuss various levels of inventory models as explained below.
Leanproduction at times is referred to as the lean manufacturing and isthe process of eliminating waste products during production. Theseresidues are formed within the manufacturing system through two waysincluding overburden and unevenness in workloads. Similarly, wasteelimination does not only occur during production process alone, butit is also extended to design, distribution and customer serviceprocess(Ivanov, Tsipoulanidis & Schönberger, 2017).
Leansupply chains can be regarded as a systematic approach to evaluatingsupply process by considering what and how much is needed, where itis required and when it is needed. Lean supply chain constitutes theepitome of a good supply chain as it ensures that products aredelivered to clients with minimum waste. For instance, lean supplychain focuses on minimizing transportation cost among others (Ivanovetal.,2017).
Threethings to do to production process to implement lean technique byoperation manager
Ivanovetal,(2017) suggested that thereare numerous activities that can be performed by operation managerwithin the manufacturing process to ensure that lean techniques areimplemented. First, the manager can decide to appoint lean leaderswithin the production process and create a succession system. Theseleaders must be equipped with lean tools and techniques and they canhelp other staff to develop a lean process by imparting theirknowledge to them. Secondly, lean techniques can be implemented inthe production process through establishing lean enterprise steeringteam who can help in accountability, planning, resourcing andfollow-up for implementation. Finally, managers can implement leantechnique by taking immediate action in the technical system andcultural changes (Ivanovetal.,2017).
Single-periodInventory model is a technique that is utilized when the products inthe inventories have a shorter selling period or when making aone-time purchase of an item. The strategy is appropriate whendealing with items such as magazines, newspaper, Christmas trees andholiday decorations.The value or demand of these products isextremely high within a short period, and their value drasticallydiminishes to zero or minimum salvage value. The advantage of thesingle-period model is that items can be sold at relatively highprices during their pick seasons (Ivanovetal.,2017).
Fixedorder quantity model
Fixedorder quantity is an inventory control system where in most cases theminimum and maximum inventory levels remain fixed while maximum andfixed amount can be replenished. The replenishment is always donewhen the inventory levels attain the auto set reorder point or attimes the minimum stock level. The advantage of fixed order quantityis that it ensures that there is a smooth flow of stock in and out ofthe inventory and that preserve storage space (Ivanovetal.,2017).
Fixedtime period model
Withfixed time period model, the ordering of the items is placedperiodically, but every time the order is placed the quantity variesand sometimes it also is known as the fixed period deficit orderingsystem (Ivanovetal.,2017).Some of the features of fixed time period model include extended leadtime is allowed, seasonal variation can be handled modestly, andextensive paperwork is required among others. This technique can beapplied when there is an opportunity to combine orders, and that canresult in lowering the shipping cost. The advantage of fixed timeperiod model is that organization can be allowed quantity discount bythe supplier (Ivanovetal.,2017).
Operationand supply chain management is a vital component in an organizationas it helps to apply lean techniques such as lean production and leansupply. Managing inventory is very critical in an institution andmanagement need to know the kind of inventory model to apply everyseason.
Ivanov,D., Tsipoulanidis, A., & Schönberger, J. (2017). Operations andSupply Chain Strategy. In GlobalSupply Chain and Operations Management(pp. 69-96). Springer International Publishing.