DQ Responses Needed ASAP

A level production strategy relies on a constant output rate and capacity while varying inventory and backlog levels to handle the fluctuating demand pattern. Describe why or why not a pure service industry (e.g. accounting or law firms) may or may not be able to implement this type of technique. Respond to at least two of your classmates’ postings.

1. Breaking it down an accounting and law firms need to have a certain amount of cases or accounts every year to stay in business. Both firms also need to carry some type of backlog in the case of hard months. Wisner, Tan, and Leong (2012) state that a firm allows good inventories to accrue, while their demand stays low for months so when demand is high, they can keep up with production (p.172). Accounting and law firms are different in this category because they use the backlog for slow months or to over produce. Currently, I am using a couple of law firms, and each of them has backlogs that replace the resolved cases so they can stay in business. This backlog is there also to replace the cases that have fallen through may it be from a client given up or the case was denied.

Scott

References

Wisner, J.D., Tan, K.-C., & Leong, G.  (2012). Principles of Supply Chain Management (3rd ed.).  Mason, OH: South-Western Cengage Learning.  ISBN: 9780538475464

2. The concept beyond level production strategy is one that enables a company to keep a constant workload while preparing ahead of time for “rush” seasons. For instance, if an umbrella manufacturing company knows that the rainier season is coming up, they understand that there will be a higher demand for this product at this time. From past experience, and through informed forward planning, the company knows that during this timeframe, they will sell an additional twelve thousand units than usual. In order to support the level production strategy, the company will spread the construction of these units over the rest of the manufacturing cycle, creating an additional one thousand units per month which will be held in reserve until the higher demand season in order to keep the labor force constant.

In a sector where the primary commodity is labor, this concept is not as easily applied. When looking at the demands of an accounting firm, it is not feasible to “stock up” on the hours required to complete the workload. While there are certain areas that can be worked on to complete certain projects in order to clear the calendar for the more demanding schedule of tax season, there is no way to simply store the man power needed to complete the workload. The level production strategy is “characterized by the fluctuating inventory/backlog level while the workforce and production capacity remain constant” (Wisner, 2012, p. 172-173). Companies that work primarily in the area of the pure service industry do not have the opportunity to create a backlog, and will need to increase work hours or bring on additional staff in order to meet the seasonal demands of the firm.

Jeri

References

Wisner, J.D., Tan, K.-C., & Leong, G.  (2012). Principles of Supply Chain Management(3rd ed.).  Mason, OH: South-Western Cengage Learning.  ISBN: 9780538475464

Review the various Lean production and Six Sigma quality tools outlined in Chapter 8. Select a tool or process that could be implemented in your current or past organization and describe how this tool could be used in improving supply chain management. Respond to at least two of your classmates’ postings.

1.The tool or quality imitative that I selected was six Sigma.  I will use my past employer who was a manufacturer of steel components fabricator as the organization.  The six-sigma process is used to guarantee the organizations suppliers are executing effectively and that the organization is meeting the needs of the client.  Six sigma is part of how the organization plans and executes their strategy (Wisner, Keah-Choon, & Leong, 2012).   Six Sigma accomplishes this through making sure the organization is focusing the right resources on the right projects.  The goal is to ensure that the organization will deliver the organizational goals.  The six-sigma program will identify the customer’s expectation and make sure that the organization meets or exceeds those expectations.  Noble Industries was not six sigma certified (Wisner, Keah-Choon, & Leong, 2012).     It was however ISO.  The organization could have benefited by going one step further and committed to the continual reassessment and improvement through Six Sigma.  ISO certification checks to make sure you are doing what you say in quality.  Where six-sigma is a set of organizational techniques that are deliberately set to improve the business processes.  In doing so, it reduces the probability of defects and errors.  It does so through a process called DMAIC.  DMAIC which stands for Defined, measure, analyse, improve and control.  The organization is to define system with the customers’ requirements in mind.  Measure the processes and collect information.  Analyse of the data to determine the cause and effect relationship and Improve the current processes based on these findings.  In addition, Control the future processes and reduce defects (Walshe, Kieran; Harvey, Gill; Jas, Pauline 2010).

Ashley

References

Walshe, Kieran; Harvey, Gill; Jas, Pauline (15 November 2010). Connecting Knowledge and Performance in Public Services: From Knowing to Doing. Cambridge University Press. p. 175. ISBN 978-0-521-19546-1

Wisner, J.D., Keah-Choon, T., & Leong, G. (2012). Principles of Supply Chain Management (3rd ed.). Mason, OH: South-Western Cengage Learning

2.Six Sigma can be very beneficial to organizations. It is designed to make significant quality improvements in value-adding processes (Wisner, Tan, & Leong, 2012). Improving the quality of an organization will help the organization connect with the customer better. Veterans Affairs would benefit from Six Sigma by focusing on providing quality care to customers. They seem to be more concerned with the amount of veterans they see, rather than the quality of care they receive. Providers that have very high caseloads will not be able to give veterans the proper amount of care and attention they need. They will schedule appointments back-to-back and veterans will feel rushed during their appointment. Focusing on the quality of care will help veterans receive the care and attention they deserve.

Focusing on the customer can thoroughly improve supply chain management. Products made of higher quality will last longer and earn the trust of customers. They want a reliable product that they do not have to worry about once they purchase it. Cheap products can break or cause customers to be unhappy with them. This will make it harder on the supply chain, as products will need to be replaced or refunded.

Sean

References

Wisner, J.D., Tan, K.-C.,& Leong, G. (2012). Principles of Supply Chain Management (3rd ed.). Mason, OH: South-Western Cengage Learning. ISBN: 9780538475464.