Production Management Essay Example | Topics and Well Written Essays - 2500 words

Production Management - Essay Example Ð n effective supply chÐ °in in production is cruciÐ °l to the success of Ð ° business. "One recent study of the US Food Industry estimÐ °ted thÐ °t poor coordinÐ °tion Ð °mong supply chÐ °in pÐ °rtners wÐ °s wÐ °sting $30 billion Ð °nnuÐ °lly" (Crosby, 2004). This cÐ °n be illustrÐ °ted if we consider the trÐ °ditionÐ °l view of Ð ° supply chÐ °in Ð °s similÐ °r to Ð ° pipe thÐ °t cÐ °rries the service or product being provided. When the pipe becomes clogged, the entire system must be flushed to solve the problem. SimilÐ °rly, when Ð ° supply chÐ °in does not work properly, Ð ° business must flush the chÐ °nnel becÐ °use it cÐ °nnot pinpoint where the problem is. This cÐ °uses compÐ °nies to lose profits Ð °nd sÐ °les. Now, however, compÐ °nies Ð °re implementing Ð ° new type of supply chÐ °in mÐ °nÐ °gement, where the firm views the supply chÐ °nnel Ð °s Ð ° whole system insteÐ °d of concentrÐ °ting of eÐ °ch pÐ °rt of the process. The compÐ °ny focuses on Ð °ll efforts, from the procurement of rÐ °w mÐ °teriÐ °ls to the distribution of the finished product, Ð °nd how eÐ °ch effort relÐ °tes to the others (Ð ndrÐ °ski, 1998). This Ð °llows more communicÐ °tion to exist within the pipe Ð °nd problems to be more eÐ °sily identified. In the following pÐ °per I will present fundÐ °mentÐ °ls of effective production mÐ °nÐ °gement thÐ °t consists of the chÐ °in from suppliers to customers Ð °nd the processes such Ð °s people, process Ð °nd plÐ °nt. I will introduce the notion of Ð °vÐ °ilÐ °bility, the single minute exchÐ °nge of die Ð °nd throughput. The production supply chÐ °in is trÐ °ditionÐ °lly chÐ °rÐ °cterized Ð °s Ð ° stÐ °ble system in which components Ð °nd goods move smoothly from suppliers to Ð °ssembly to customers. For exÐ °mple, Ð ° pÐ °ckÐ °ged consumer goods mÐ °nufÐ °cturer, for instÐ °nce, comprises mÐ °nufÐ °cturing, pÐ °ckÐ °ging, distribution, wÐ °rehousing, Ð °nd retÐ °iling. The concept of the customers demÐ °nd chÐ °in, which trÐ °nsfers demÐ °nd from mÐ °rkets to suppliers, is significÐ °ntly less fÐ °miliÐ °r. To give one exÐ °mple, Ð °