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CCE is continually look for new investments to improve the efficiency of its
operations it recently opened a new 20m automatic storage and retrieval system
at its distribution centre in Dongen, The Netherlands. The new facility is designed to
hold and automatically move pallets of bottles and cans enabling CCE to more
efficiently serve the needs of customers, as well as to maximise the cargo space
used in trucks.
The company is also continually testing new technology and innovations, such as
Bluetooth beacon technology and 3D printing.
2.
The economic order quantity (EOQ) is a model that is used to calculate the optimal
quantity that can be purchased or produced to minimize the cost of both the
carrying inventory and the processing of purchase orders or production set-ups.
Economic Order Quantity is the quantity that minimizes all these costs. The model
was first developed by Ford W. Harris in 1913 but R. H. Wilson, a consultant, is given
credit for his in-depth analysis.
Formula:
Q= (2DS/H)
Where,
Q = optimal order quantity or economic order quantity
D = demand of the item
S = fixed ordering cost or setup cost
H = inventory holding cost per unit
The economic order-quantity model considers the trade-off between ordering cost
and storage cost in choosing the quantity to use in replenishing item inventories. A
larger order-quantity reduces ordering frequency, and, hence ordering cost/month,
but requires holding a larger average inventory, which increases storage (holding)
cost/month. On the other hand, a smaller order-quantity reduces average inventory
but requires more frequent ordering and higher ordering cost/month.
Economic batch quantity (EBQ), also called "optimal batch quantity" or economic
production quantity, is a measure used to determine the quantity of units that can
be produced at minimum average costs in a given batch or production run.
Economic Production Quantity model (also known as the EPQ model) is an extension
of the Economic Order Quantity model. The Economic Batch Quantity model, or
production lot-size model, is similar to the EOQ model in that an optimum is to be
calculated for the batch quantity to be produced.
The demand (D) is known and constant within a certain period of time.
The unit cost of the inventory item (U) is constant.
The annual holding-cost per unit (Ch) is constant.
The setup-cost per batch (C) is constant.
The production time (tp) is known and constant.
There is one kind of product.
There is no interaction with other products.
The aspect of time does not play a role, just the setup time does.
The setup cost is constant and does not act upon the batch quantity.
3.
a) William Edwards Deming was an American engineer, statistician, professor,
author, lecturer, and management consultant. Educated initially as an electrical
engineer and later specializing in mathematical physics, he helped develop the
sampling techniques still used by the U.S. Department of the Census and the
Bureau of Labor Statistics. In his book The New Economics for Industry,
Government, and Education Deming championed the work of Dr. Walter Shewhart,
including Statistical Process Control, Operational Definitions, and what Deming
called The Shewhart Cycle which had evolved into PDSA (Plan-Do-Study-Act). This
was in response to the growing popularity of PDSA, which Deming viewed as
tampering with the meaning of Shewhart's original work. Deming is best known for
his work in Japan after WWII, particularly his work with the leaders of Japanese
industry. That work began in August 1950 at the Hakone Convention Center in Tokyo
when Deming delivered a seminal speech on what he called Statistical Product
Quality Administration. Many in Japan credit Deming as the inspiration for what has
become known as the Japanese post-war economic miracle of 1950 to 1960, when
Japan rose from the ashes of war to become the second most powerful economy in
the world in less than a decade founded on the ideas Deming taught:
Better design of products to improve service
Higher level of uniform product quality
Improvement of product testing in the workplace and in research centers
Greater sales through side [global] markets
b)
Joseph Moses Juran was a Romanian-born American engineer and management
consultant. He is principally remembered as an evangelist for quality and quality
management, having written several influential books on those subjects. He was the
brother of Academy Award winner Nathan H. Juran
c)
Kaoru Ishikawa was a Japanese organizational theorist, Professor at the Faculty of
Engineering at The University of Tokyo, noted for his quality management
innovations. He is considered a key figure in the development of quality initiatives in
Japan, particularly the quality circle. He is best known outside Japan for the Ishikawa
or cause and effect diagram (also known as fishbone diagram) often used in the
analysis of industrial processes.
d)
Philip Bayard "Phil" Crosby was a businessman and author who contributed to
management theory and quality management practices. Crosby initiated the Zero
Defects program at the Martin Company. As the quality control manager of the
Pershing missile program, Crosby was credited with a 25 percent reduction in the
overall rejection rate and a 30 percent reduction in scrap costs.
4.
The fundamental objective of the Six Sigma methodology is the implementation of a
measurement-based strategy that focuses on process improvement and variation
reduction through the application of Six Sigma improvement projects. This is
accomplished through the use of two Six Sigma sub-methodologies: DMAIC and
DMADV
DMAIC
The set of Six Sigma methodologies that is most applicable to the manufacturing or
production side of a product or service, DMAIC includes these project stages:
Define - address the identification of specific processes to be examined
Measure - record data and use metrics to track effectiveness and evaluate
efficiencies
Analyze - utilize critical thinking skills to review data and clarify goals
Improve - create changes in business processes geared toward improvement and
better alignment with corporate goals
Control - build a system of checks and adjustments for ongoing improvement in
production processes
DMADV
The complementary set of Six Sigma processes that is most applicable to examining
and improving the customer relations side of a company, DMADV includes these
project stages:
Define - address customer needs in relation to a product or service
Measure - involve the use of electronic data collection to measure customer needs,
response to product, or review of services
Analyze - utilize metrics to evaluate areas where product or service can be better
aligned to customer goals and needs
Design - overlap the improvement of business processes that streamline corporate
goals to best meet client and customer needs
Verify - build a system of tests and models to check that customer specifications are
being met through on-going improvements
5.
MRP
Material Requirements Planning, or MRP, was developed in the 1970s to help
manufacturing companies better manage their procurement of material to support
manufacturing operations. MRP systems translate the master production schedule
into component- and raw material-level demand by splitting the top level assembly
into the individual parts and quantities called for on the bill of materials, which
reports to that assembly, and directs the purchasing group when to buy them based
on the component lead time which is loaded in the MRP system.
MRP2
Manufacturing Resource Planning, or MRPII, goes several steps beyond MRP. While
MRP stopped at the receiving dock, MRPII incorporates the value stream all the way
through the manufacturing facility to the shipping dock where the product is
packaged and sent to the end customer. That value stream includes production
planning, machine capacity scheduling, demand forecasting and analysis modules,
and quality tracking tools. MRPII also has tools for tracking employee attendance,
labor contribution and productivity.
6.
Game theory is a tool used to analyze strategic behavior by taking into account how
participants expect others to behave. Game theory is used to find the optimal
outcome from a set of choices by analyzing the costs and benefits to each
independent party as they compete with each other.
Game theory explores the possible outcomes of a situation in which two or more
competing parties look for the course of action that best benefits them. No variables
are left to chance, so each possible outcome is derived from the combinations of
simultaneous actions by each party
7.
The House of Quality is the first matrix in a four-phase QFD (Quality Function
Deployment) process. Its called the House of Quality because of the correlation
matrix that is roof shaped and sits on top of the main body of the matrix. The
correlation matrix evaluates how the defined product specifications optimize or suboptimize each other.
It looks like a house with a "correlation matrix" as its roof, customer wants versus
product features as the main part, competitor evaluation as the porch etc. It is
based on "the belief that products should be designed to reflect customers' desires
and tastes".[3] It also is reported to increase cross functional integration within
organizations using it, especially between marketing, engineering and
manufacturing.
8.
Total quality management (TQM) consists of organization-wide efforts to install and
make permanent a climate in which an organization continuously improves its
ability to deliver high-quality products and services to customers. While there is no
widely agreed-upon approach, TQM efforts typically draw heavily on the previously
developed tools and techniques of quality control. TQM enjoyed widespread
attention during the late 1980s and early 1990s before being overshadowed by ISO
9000, Lean manufacturing, and Six Sigma.
Total quality management can be summarized as a management system for a
customer-focused organization that involves all employees in continual
improvement. It uses strategy, data, and effective communications to integrate the
quality discipline into the culture and activities of the organization.
Communications. During times of organizational change, as well as part of day-today operation, effective communications plays a large part in maintaining morale
9.
Overlooking the continued growth of e-commerce as a channel in the industrial
sector
Two years ago, Amazons presence as a major seller of industrial products was
non-existent. Today, via Amazonsupply.com, the company commands 2 percent of
the channel and is growing. One need only to look at what Amazon did in the
consumer products sectorand, especially, what the online giant did to established
physical retailers of booksto see how this story will play out. To avoid being the
next Borders, small and midsize industrial manufacturers and distributors must take
ecommerce seriously. That means building multi-channel fulfillment networks that
can simultaneously process orders from multiple ordering channels and fulfill them
from the source that provides the highest level of customer satisfaction and the
lowest fulfillment cost. With customers today expecting more and better ways to be
served, multi-channel networks have become key to keeping prices low, providing a
leg up on competition, and driving customer loyalty.
to work most effectively, a company must have an explicitly stated and shared
corporate vision and missionnot just among external customers and service
providers, but also internal constituents involved in the supply chain, including
warehousing, transportation, and sales. Furthermore, supply chain management
technologies are most effective when they support tight collaboration among these
parties and provide visibility into all key aspects of the business.
audits and assessments on an ongoing basis to make sure suppliers are keeping
pace with their business