SYED WAQAS KHAN

11 IN 96

Manufacturing Strategy

Sub Teacher :- Prof. Dr Adul Salam Soomro

Operational control, in contrast to strategic control, is concerned with executing the strategy.

Where operational controls are imposed, they function within the framework established by the strategy.

Normally these goals, objectives, and standards are established for major subsystems within the organization, such as business units,

projects, products, functions, and responsibility centers.

Typical operational control measures include return on investment, net profit, cost, and product quality.

Operational Control

Manufacturing Control

Inventory Control

Quality Control

OPERATIONAL CONTROL

Manufacturing strategy is a plan for :-

Intermediate and finished goods products to be made ?

When to make the products ?

How much to make?

Equipment and materials that should be used ?

Procedures to follow to make the products ?

Quality specifications ?

Manufacturing control without control is like a bank without a bank manager, planning initiates action while control is an adjusting process, providingcorrective measures for planned development.What is Production/ Manufacturing Strategy ??

Manufacturing Control

Manufacturing control is actually facilities that are looking for ways to improve efficiency and productivity, lower costs, and increase capacity utilization should assess the use of automated operations management.

Features / Characteristics :-

Describe the production function and its component

Define production management

Analyze various factors, which are crucial for designing the production

Explain the design of production system and manufacturing process

List out the factors influencing the choice of production process

Discuss the benefits, which a small entrepreneur can reap by having properly

designed production planning, and control system

A push strategy places the product in front of the customer to make sure the consumer is aware of the existence of the product. This can work well when manufacturers have an established relationship with customers or when the product is an impulse purchase-type item.

Push strategies include trade shows, showrooms, getting retailers to stock a product, and creating a supply chain to facilitate distribution.

A pull strategy motivates customers to actively seek out a specific product and it best for new products or in the case when a manufacturer has a strong and visible brand.Pull strategies include mass media advertising, referrals, customer relationship management, and sales promotions.Companies usually use a combination of push and pull strategies in a marketing mix.

Push Strategy

Pull Strategy

Inventory practitioners are on the firing line every day to plan future material availability while supporting daily shortages. Therefore, today’s companies have a greater need for inventory professionals who understand when to follow, bend, break, or ignore the rules

Inventory Control !!!!

Inventory levels are driven by the company’s sales and marketing strategy for its product lines, an understanding of customer buying patterns, and the competitive and economic environment. These factors are all external to the inventory management department.

How they are translated into inventory levels and availability is the function of the inventory strategy as translated into internal planning and control processes and procedures.

This is the responsibility of the inventory manager and planners.

Team Choice—Strategy development and implementation requires experiencedstrategic planners

Schedule Choice—There is always a sense of urgency with perfect hindsight since the company is reacting to the strategies of its competitors

Philosophy Choice—Being forced to establish a new operating philosophy because of outside pressures

Inventory Strategy Procedure :-

Inventory Level :—To how much level materials should stock.

Wahre house Choice—include nature , size , layout . Destination and environmental condition

Planners must manually review and release all orders in order to maintain control

Statistical safety stock equations indicate that it is mathematically impossible to achieve a 100 percent safety stock coverage

All materials should be received just in time.

Forecasts will never be 100 percent accurate, so there is little to be gained by trying to make them better.

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Inventory Control Features :-

Quality Control (QC) may be defined as :-

‘a system that is used to maintain a desired level of quality in a product or service’.

It is a systematic control of various factors that affect the quality of the product. Quality control aims at prevention of defects at the source, relies on effective feed back system and corrective action procedure.

Quality control can also be defined as :-

‘that industrial management technique by means of which product of uniform acceptable quality is manufactured’.

It is the entire collection of activities which ensures that the operation will produce the optimum quality products at minimum cost.

QUALITY CONTROL

The main objectives of quality control are:

To improve the companies income by making the production more acceptable to the customers i.e., by providing long life, greater usefulness, maintainability, etc.

To reduce companies cost through reduction of losses due to defects.

To achieve interchangeability of manufacture in large scale production.

To produce optimal quality at reduced price.

To ensure satisfaction of customers with productions or services or high quality level, to build customer goodwill, confidence and reputation of manufacturer.

To make inspection prompt to ensure quality control.

To check the variation during manufacturing.

Acceptance Quality Level (AQL) refers to the maximum number of defective items that could be considered accepted during the random sampling of and inspection. The defects that are found during inspection are classified into 3 categories:

1. Critical: Must be 100% accurate. There is no range.

2. Major: Normally 2.5%

3. Minor : Normally 4%

Acceptance Quality Level (AQL)

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