In the S, T, and P facilities, it has been identified that some of the manufacturing processes are related with one another. Due to the interrelatedness and the other problems seen from the different facilities, it is seen that a problem from one facility affects the others. This is observed to be especially true for the area of the management and inventory control. Materials management is oftentimes associated to inventory control and this is defined as the act of “managing the organization’s raw materials, work-in-process, finished goods, and products in-transit” (Griffin, 2002 as cited in Adam & Sammon, 2004, p. 28).
The primary focus of the materials and inventory management involve being accountable for all WIP and stock, coordination with the suppliers in order to organize production requirements, maintain a desirable inventory level, manage the processes related to physical inventory audits, establish automated forms of inventory systems, manage the condition and coding of the materials, coordinate with or manage the purchasing department, discuss with major suppliers regarding the prices and terms, choose new suppliers, ensure that the methods in existence are in sync with the changes in the environment (Charvet, 1997).
The importance of these processes would lie on the need for materials and inventory in creating a long-term advantage in terms of competitive grounds (Jamal et al., 2007). Upon a review of the situation for the three facilities, there are several findings that are worth noting. First, the frequency as to when the accessory parts run out in S facility is seen to be declared on a habitual interval. The causes and implications of this could include that the T and P facilities are not able to meet the demands of the S facility because identification of the quantity is not fully carried out by the T and P facilities.
Moreover, it could be that there are problems with the shipping schedule from the T and P facilities wherein the time as to when the accessories are needed in the S facilities is not clearly identified or unknown that is why shipments are not organized. Second, formal receipt of the materials needed for production in the T and P facilities is not present as well as a system in order to reflect this to have arrived at the T and P facilities in order to acknowledge the shipment from the S facility. The establishment of a system would also entail the need for the creation of a formal receiving dock where shipments pass through.
It allows for the inspection of the shipments and the respective entry into the inventory system of the respective facility. Third, concerns arise, too, with the wasted productions due to malfunctioning equipment or wrong materials used. Incidences such as this could be experienced when routine maintenance on the equipment and evaluation of the materials is not carried out to ensure that errors are minimized. In light of the problems identified for the materials and inventory aspect, there are recommended measures that are used in order to resolve the problems.
First, it is necessary for the facilities to have a computerized inventory system wherein the necessary parts are interrelated with one another. The benefit derived from having a computerized system for the inventory control is attributed to its ability to organize the data of the organization in an efficient manner and the reduced costs associated with inventory control (Palmer, 2005). Second, there is the need to provide for a receiving dock for the shipments wherein the materials shipped are immediately entered into the system to reflect both an acknowledgement receipt and confirmation to the other facility from which it came from.
This makes inventory easier as it is done as the shipments are brought in which means that it is always update. Third, training with regard to the evaluation and maintenance of the equipment should be provided to the employees who are responsible for this. Likewise, there should be a regular schedule for assessment of equipment condition and materials to ensure that disruptions and errors are kept to a minimum.
Adam, F. & Sammon, D. (2004). The enterprise resource planning decade: Lessons learned and issues for the future. Hershey, PA: Idea Group Publishing. Charvet, S. (1997). Words that change minds: Mastering the language of influence. (2nd ed. ). Author’s Choice Publishing. Dubuque, IO: Kendall Hunt Publishing Company. Jamal, N. M. , Mastor, N. H. , Saat, M. M. , Ahmad, M. F. , and Abdullah, D. F. (2007). Cost and management accounting: An introduction. Johor Darul Ta’zim: Muapaat Jaya Percitakan Sdn. Bhd. Palmer,D. (2005). Maintenance planning and scheduling handbook. New York, NY: McGraw-Hill Professional.
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