.

Location decision is a critical strategic Total Quality Management basically is a Merits of ABC Analysis *It facilitates
decision that is made in operation management business philosophy founded on customer selective control and there by saves valuable
relating to selecting the site for the establishment satisfaction. The business process starts with the time of busy executives.*It eliminates lot of
of the physical unit of the production process. customer. In fact if it is not started with the unnecessary paper work involved in various
The physical unit means "plant" where customer; it all too often abruptly ends with the other control procedures.*Facilitates inventory
workforce, material, money, equipment, customer. TQM is managing the entire control and control over usage of stored
machinery, etc. are brought together for the organization so that it excels on all dimensions materials which ultimately results in cost
manufacturing of product or rendering of of products and services that are important to controls. Demerits of ABC Analysis :*It is
services. Location decisions are infrequently the customer. Philosophical elements of some time difficult to classify items to A, B and
made. Factor Affecting Location Decisions TQM:*Employee Participation and C class. A wrong classification may be
*Availability of labors and their skill: Stable Development:Quality betterment is not detrimental in terms of cost & control. *ABC
labor forces of right kind, adequate size possible without the employee participation. focuses on loose control and review of low
(number), and reasonable rates with proper Employees are the internal customer, and every value items like 'B' and 'C. This sometime
attitude towards works are a few factors which employee should be taken as the 'Quality becomes higher cost centre, and unproductive
govern the plant location to a major extent. The Worker'. To locate and identify the process sector of organization. ABC classification is
purpose of management is to face less boycotts, faults in order to control the scrap and waste. unsuitable, if the effects of random fluctuations
strikes or lockouts and to achieve lower labor The employee should be regularly updated and on production system are higher. For example,
cost per unit of production. *Transport trained for the emerging quality processes and C items like "diesel" in a firm may be very high
facilities: Good transportation facility is an standard. *Quality Circle :A quality circle is a valued and critical during power crisis.
important factor of determination of location. small group (6 -12) of staff working together to
Basic mode of transportation like air, road, rail, contribute to the improvement of the
Aggregate Planning Techniques :*Linear
water, pipelines are preferred based on the enterprise, to respect humanity and to build a
programming *Mixed integer programming
nature of raw material and finished goods. A lot cheerful workgroup through the development
*Linear decision rule *Management coefficient
of money is spent on transporting the raw of the staff's infinite potential. A quality control
model
material and finished goods. The location should circle (QCC) team of people usually coming
minimize the cost of transportation. from the same work area who voluntarily meet
*Availability of services: Services like gas, on a regular basis to identify, investigate, *Quality of a product and service is enhanced
electricity, water, drainage, waste disposal, analyze and solve their work-related problems. when everyone in the organization takes the
communication and other external amenities Continuous Improvement: It is associated responsibility. Quality function deployment is
like shop, community services, communication with Kaizen philosophy and its applicability is one
system etc. are also the determining factors extended beyond organizational environment to
affecting location decision. *Suitability of cover personal life, relationship, social life, etc.

Supply chain management (SCM) is Emerging Issues in Product and Service Aggregate planning (output) is the process
defined as the coordination of product, Design :The way product and service are of determining the output level (units) of
information and financial flows between and designed has seen a tremendous change in product groups over the coming 6 to 18 months
among all participating enterprises. recent times. Changing customer preference, on a weekly or monthly basis. Developing the
development in technology, etc. have proved to aggregate production plan involves four basic
A manufacturing strategy refers to set of be both challenging and full of opportunity. In considerations. Aggregate Planning
well-coordinated objectives and action prograns this regard, some of the key emerging issues Strategies *Chase strategy: Match the
that are designed at securing a long-term, that are now impacting the product and service production rate to the order rate by hiring and
sustainable advantage over the firm's design are explained as follows: 1Value laying off employees as the order rate varies.
competitors. In this reference, manufacturing Analysis: One of the emerging issues in The success of this strategy depends on having a
strategies form a critical component of the product and service design is value analysis. pool of easily trained applicants to draw on as
firm's corporate and business strategies. Value analysis is a process of systematic review order volumes increase. There are obvious
that is applied to existing product design in motivational impacts.When order backlogs are
order to compare the function of the product low, employees may feel compelled to slow
Service Strategies :Similar to manufacturing required by a customer to meet their down out of fear of being laid off as soon as
organizations, operations strategies are adopted requirement at the lowest cost consistent with existing orders are completed. *Stable
in service organizations too. The key difference the specified performance and reliability. It is workforce-variable work hours: As per
however is that in service organizations, one complex definition that focuses on three this strategy, output can be varied by varying
operation strategies are usually inseparable key aspects namely:. *Understanding the use of the number of hours worked through flexible
from the corporate strategy. In this regard, product: Value analysis is focused on work schedules or overtime. By varying the
service strategies must be developed keeping understanding the use of product so that number of work hours, you can match
customer in mind. specifications can be established to assess the production quantities to orders. This strategy
level of fit between product and value derived provides workforce continuity and avoids many
Factors Influencing Plant Layout by customer. Objectives of Value Analysis: of the emotional and tangible costs of hiring and
:*Material factor *Machinery factor *Man *To create better value of a product/ service. firing associated with the chase strategy.
factor *Movement factor *To improve the overall competitive position *Level strategy: Maintain a stable workforce
of a company. *To make sure that key elements working at a constant output rate. Shortages
Linear programming is problem solving of cost such as labor, materials, etc. con and surpluses are absorbed by fluctuating
approach developed to help managers make function of the product. *To identify and inventory levels, order backlogs, and lost
decisions. Linear programming is a eliminate unnecessary cost. 2Concurrent sales.Employees benefit from stable work hours
mathematical technique that helps in decision Engineering:One of the emerging issues that at the costs of potentially decreased customer
making under certainty situation specially use have gained prominence in recent times is service levels and increased inventory costs.
for resource allocation. Linear programming concurrent engineering.Also known as Another concern is the possibility of
problem seeks to maximize or minimize simultaneous engineering, concurrent inventoried products becoming obsolete.
objective function. engineering is a method of product design
where the different stages are run
simultaneously. In concurrent engineering,
short product design is done with collaboration
Seven Tools for the Quality :*Flow Quality can be continually improved; it is not a land and climate: The topography
charts: These are particularly useful in static thing it is very dynamic thing. Constantly (geography) of the land also affects plant
understanding the input, process and it needs to improve every process for planning, location. Similarly the climatic conditions e.g.
configurations. Flow charts are simple devices production and service. Search for the rain fall, humidity, average temperature are also
that show the flow of the process being problems always in order to improve every critical factor while determining the location
examined by showing the sequence of events activity in the company, better quality, increase decisions. *Opportunity for expansion:
for that process. *Check sheets: It is a form productivity and decrease costs. It is a The long range prospective of expansion
used to record the frequency of occurrence of management's job to work continually on the opportunity must be considered while making
certain product or service characteristics system (design, incoming materials, location decision. The location should be flexible
related to quality. *Histograms: Histograms maintenance, improvement of machines, enough to cover the expansion
are a graphical representation of a given sets training, supervision retraining, etc.)
and are used to visualize the data generated in *Management's Commitment: Adopting Inventory management is an important
check sheets. *Fishbone and instituting leadership aims at helping people concern for managers in all types of the
Diagram/Ishikawa Diagram: This diagram do better job. The responsibility of the business. Every business/ manufacturing
is based on the philosophy that "for every managers and supervisors must be changed organization however, big or small has to
problem there must be the reason" • After from producing mere numbers to quality. This maintain some inventory. Inventory helps the
identifying the problem (effect) the root cause will automatically improve the productivity. company quickly responding to the customer
should be identified for its permanent solution. The managements must be ensured that demand, which is an important element of
*Pareto Analysis: Pareto analysis is the immediate action is taken on reports of competitive strategy. Importance of the
systematic way to segregate vital few from the inherited defects, maintenance requirements, Inventory:The reasons behind maintaining the
trivials. Pareto's concept is also called 80-20 poor tools, fussy operational definitions and inventory by the business/manufacturing organ
rule, i.e. 80% of the activity is caused by 20 other conditions are detrimental to quality. listed as below: *To provide and maintain good
percent of the factors. *Scatter Diagram: A *Customer Driven Quality:In the TQM customer service. *To enable the organization
scatter diagram is a plot of two variables definition, quality is interpreted as "Customer's smooth flow of goods in the production
showing whether they are related or not. Each expressed and implied requirements are met process. *To provide protection against the
point on the scatter diagram represents one fully". This is a core statement. It is important uncertainties of demand and supply. *To
data observation. *Control Chart: Control to note that satisfying the customer's needs and perform various production operations
chart is a systematic graphical display of quality expectations is the main factor. Therefore, it is economically and independently. *To allow
characteristics that has been measured. an imperative for a company to identify such flexibility in schedule. *To ensure a reasonable
needs early in the product/ service utilization of equipment and labor. *To take
development cycle. The ability to define advantages of economic purchase order.
accurately the needs related to design,
performance, price, safety, delivery and other
business activities and processes will place a
firm ahead of its competitors in the market.
A business plan is an organization's overall between all individuals, groups and Assumptions of Linear Programming:
level of business activity forecasted for the departments within an organization. *Proportionality (Linearity) *Additivity
coming 6 to 18 months. It is developed by top Concurrent engineering is a long term business *Divisibility
executive level. It is usually expressed in approach that provides benefits to product and
rupees. Forecasting is based on three primarily service design in the long-run. Objectives of The assignment model is actually a special
factors viz. general economic conditions, Concurrent Engineering: *To gain case of the transportation model in which the
industries condition, and competition. The competitive advantage over competitors by workers represent the sources and the jobs
business plan, though is a forecast, should be reduction in time to market. *To enhance represent the destinations. Objectives:
based on the level of activity and out put that productivity by earlier discoveries and *Match the appropriate person with
can be best supported by all functional areas correction of design problem.*To make appropriate job. *Minimize the total
like finance, production, marketing, product that matches the needs of customers. cost/time/effort. *Maximize the total
engineering and R & D. The business plan *To decrease product/ service design and profit/output/efficiency.
however is not concern with all the details and development time.*To improve product
timing of functional activities for executing the quality and performance. *To do more with
plan. Instead it determines a feasible general less. 3Quality Function Least Cost Method :Systematic allocation of
posture for competing to achieve its major Deployment:Quality function deployment is goods beginning from the least cost cell and
goals. a systematic and organized approach of taking moving to the cell with the next lowest cost
customer needs and demand into consideration until respective source capacity or destination
in the product and service design. Commonly requirement is exhausted.
Aggregate output planning :The aggregate
output planning is concerned with the overall known as QFD, it was developed in the late
level of output for coming 6 to 18 months to 1960's in Japan by two professors Yosi Akao Transportation Problem: The problem
support the business plan. Thus, it is the and Shigeru Mizuno. Quality function which involves the determination of optimal
production portion of the business plan. Output deployment is basically a system that translates transportation of goods from sources to
is expressed in number of units of its product customer requirements into appropriate destination in most of the cases. Sources are any
group or families. Since various product groups company requirements at each stage of product group of supply centers from where
may be produced at diverse plants, facilities or design and development. In other words, QFD commodities distributed to any group of
divisions, each, of them needs its own aggregate is a formal process that helps in understanding receiving centers (destinations).
output plan best supporting the firm's aggregate the user needs and facilitate it in weaving them
output plan. The division's aggregate output across the whole product development cycle. Balanced Transportation Problem :A
plan covers the output planning for coming 6 to The key rationale that justifies the emerging transportation problem in which total
18 months on a weekly or monthly basis. prominence of quality function deployment are availability of the goods at the sources is equal
Planning at this level does not include the listed as follows: *Satisfied customers are to the total requirement at the destinations,
details such as number, style, colour, or model crucial to success of every business. It is thus otherwise, the transportation problem will be
of individual products. The plan is concerned important that their needs are understood and unbalanced transportation problem.
with the division's existing production capacity incorporated in product and service design. *It
and resources required to carry out production is always better to develop a product in a
so that the business plan is best supported. proactive way rather than reactive. QFD helps short
an organization to carry out its product
development in a proactive approach.