Effectiveness Of Inventory Management System Business Essay

Operations Management is an of import portion of any organisation because it refers to the manner organisations produce goods and services. It is one of the mechanisms that generates gross and good will which is the kernel of endurance in a planetary universe of ferocious competition and recessing economic systems depending on which portion of the universe the organisation is set. Operationss Managers are expected to bring forth the coveted goods and services at the right criterions in the right measure at the right clip and at the minimal cost. The chief issue of an organisation is to fulfill clients ‘ demands and wants and this happens when the perceived goods sought are equal to what is expected. This therefore arise the demand of quality which is besides an of import property to a company ‘s operational success, though it is to be noted that quality is perceived instead subjectively because it depends mostly on clients perceptual experience. There are many rules, tools and techniques in Operations Management that have been developed over the old ages so as to optimise the available resources and therefore come out with a better end product. The demand to demarcate from rivals is a must hence conformance of the merchandise along with the best service can be used as a strategic tool to distinguish and derive market portion. This can be achieved through changeless monitoring, measuring and utilizing proper operations techniques and rules. The spotlight of this survey will be on the usage of these techniques in KN fabrication Ltd.

Company Profile

Founded in 1984 by the late beloved Mr. Kestven Naidoo, Metex Trading Co Ltd was since its being, a company covering in UPVC, HDPE & A ; hardware stuffs and Metex was recognized to be the first company to hold contributed in the breakage of the monopole which existed in this sector. However unluckily Mr. Kestven Naidoo died in the twelvemonth 2000, a spread which can ne’er be filled therefore go forthing the sequence of the concern to his younger boy Mr. Raveesen Naidoo. Determined to carry through his pa ‘s dreams and although the undertaking was tremendous he did n’t go forth any rock unturned, he took the challenge and due to his good direction and leading qualities he had propelled Metex Trading Co ltd today to the top in the sector of plumbing. The company is nowadays being recognized as the specializer in the field of plumbing and the field of H2O engineering. Mr.Raveesen Naidoo had non merely restructured the company but he had besides restructured all the scenes and the profile of the company. Therefore in this position they will be traveling to their ain edifice ( Metex Tower ) at corner Arsenal & A ; Dr. Sin Yat Sun street Port Louis shortly where a personalized client attention will be provided to each clients. In position to fulfill the demands of the clients Metex Ltd has diversified their services and divide their concern in three groups viz. : KN Manufacturing Co Ltd which is situated in the industrial zone of Phoenix, the production works of the UPVC adjustments. There is besides Iritech Contracting Ltd, the catching section covering in all civil plants including electro merger, groove firefighting & A ; Land atomization plants and eventually Metex Co Ltd the chief company. KN Manufacturing Co Ltd produce all their UPVC adjustments following theA British StandardA and all their merchandises are ISO 3633 certified.A Furthermore all the production is approved and tested by the Mauritius Standard Bureau.

Background Of the job

In any concern entity Operations Management is a functional field with clear duties like Marketing or Finance. Therefore the usage of operations direction rules is a must to be effectual and efficient so as to accomplish the strategic ends and aims, one of which is net income maximization. Operationss are consecutive that is they consist of stairss, and Operation Principles helps to specify those stairss so as the production goes good. Operation Principles aid to supervise the production procedure from the input which is the natural stuffs, the procedure consisting of the stairss to do the concluding merchandise and end product that is concluding merchandise and the service. It is of import to carry through the client ‘s specifications ; this is achieved through changeless monitoring utilizing Statistical Process Control ( SPC ) theoretical accounts so as to modulate the degree of conformance in the merchandise. This is an of import measure to minimise wastage to zero and bring forth the best quality standardized merchandise and service to the clients. After production storage is necessary, this besides includes the storage of natural stuffs ; this includes a storage cost which can be minimized farther by utilizing the Inventory Management techniques, the Economic Order Quantity ( EOQ ) and Production Order Quantity ( POQ ) theoretical accounts which enables to order the right sum of natural stuffs and produce the right measure on demand. Operationss Managers must be in a place to anticipate and expect the barriers to production and extinguish them or the future production rate and for this intent prediction theoretical accounts are used, both quantitative and qualitative. Time factor is of import and every procedure must be done within the predicted clip frame, the rule of Short Term Scheduling is used to delegate undertakings and work force and is concerned with the timing of the operations. These rules will assist KN Manufacturing Ltd to be more competitory and aid to derive a greater market portion and credibleness among clients and providers. These Operation Principles will enable to reconstitute the whole production procedure in the house

Problem Statement

The production floor of KN Manufacturing has three Injection Molding machines along with different molds which produce adjustments harmonizing to the demand of the clients. The whole procedure is automated. The machines are left to be preheated for around 30 proceedingss anterior production and mundane two to five pieces come as culls due to the fact that spots and pieces of molten plastic that remained in the machine from old production, it besides happens due to installing of new casts. These faulty pieces are reground and added to the natural stuff. It must be noted that there is a grade of reground plastic which is allowed otherwise it will non conform to the criterions. Oven proving and Vicat softening temperature proving are used to look into the conformity of the finished merchandise. A production control sheet is used to enter production on a day-to-day footing which include the figure of defects, good pieces, the sum of natural stuff used, get downing clip and completing production clip which is so input on excel sheet. The plastic granules which is the natural stuff comes in bags of 20 five kgs which are kept in KN ‘s shop, the works may utilize about eight 100s bags which are imported over a period of 16 month depending on production. Customer ailments on the merchandise is rare but present, there is besides late bringings. Most of the client ailments come from the service of clients in the hardware store, sometimes the rich person to wait for a long clip to be served because sometimes they come with long lists from worksites. This force per unit area creates some sort of struggles between the workers at that place. The warehouses are located far off, if an point is non available in the hardware store it takes clip to travel to the there and return. Sometimes the people working at the warehouse do non trouble oneself to look for an point good and merely state that the point is non available and later it is found that the point was at that place so there is unneeded disbursal. Forecasting theoretical accounts are non used in the company to bring forth variables for future demand.

Research Aims

To measure the effectivity of Inventory Management System.

To look into the consciousness of Operations Management tools & A ; techniques among staff.

To analyse the Quality Management pattern of the organisation.

To measure the usage of calculating techniques.

To place operations related jobs and urge an appropriate mechanism to provide for them.

Research Questions

How do stock list costs impact on the organisation ‘s investing?

To what extent are Operations tools and techniques followed in the organisation?

What are the causes of hapless quality?

Does prediction theoretical accounts play an of import function in the operations schemes?

What are the troubles that are normally encountered on Operational degree?

Purposes Of The Study

The purpose of the survey is to measure whether the technique of Inventory Management System is applied efficaciously, to develop the consciousness of the Operations Management tools and techniques among the staff and besides to analyse the Quality Management pattern of the organisation. This survey will besides assist to measure the usage of calculating techniques and therefore place operational jobs and supply an appropriate solution to counter them.

Significance Of The Study

This survey will assist the organisation to accomplish competitory advantage which is indispensable to travel a measure farther from rivals. External environment is unpredictable and the figure of rivals tend to increase, so by the agencies of appropriate Operational tools and techniques in the production and service of goods, the organisation will guarantee endurance every bit good as fulfill its primary aims which is net income doing along with the earning of good repute in the market and credibleness towards clients and providers. The organisation will besides be able to optimise on resources with these rules. The employees will larn the usage and application of Operations Management rules and tools which will assist them to make their work expeditiously and efficaciously. This will enable them to work towards international criterions and do them quality oriented where more accent will be made on the input and the procedures which will ensue in a better end product. The good consequence will bring on motive amongst employees which is good for organisational wellness. Customers will besides profit greatly non merely due to the fact that their demands will be fulfilled but they will acquire a criterion and conform merchandise of the best quality along with a good service at the right clip, this arise client satisfaction which is good for the concern relationships.

Phases Of The Dissertation

The thesis will dwell of the undermentioned chapters:

Chapter 1 – Introduction

This portion of the survey will dwell of a brief position of the topic. It besides includes the organisation ‘s profile and the jobs encountered which will trip the research. The purposes and aims are besides covered.

Chapter 2 – Literature Reappraisal

Literature reappraisal covers the research and findings of other writers on the topic of survey, it besides emphasizes on its restrictions and methodological analysis used. This will assist to polish the research thoughts that have been discussed in chapter 1. It besides helps in understanding the doctrines and attacks of the survey.

Chapter 3 – Methodology

The methodological analysis portion defines the types of research methods that can be used ; the two types are chiefly qualitative and quantitative research. There will be a study which will be filled by respondents of the organisation. A good methodological analysis is what will convey this survey on the right path.

Chapter 4 – Presentation of Findingss

The presentation of findings will be the consequences of the study that has been conducted in the organisation. The variables of the survey will be grouped and sorted utilizing statistical package. There will besides be a brief overview of the respondents ‘ reactivity and reaction to the study.

Chapter 5 – Presentation of Analysis

This chapter is focused on the reading of the findings from the statistics that has been performed in the organisation and premises will be made based on it which will give another dimension to the survey.

Chapter 6 – Decision and Recommendations

The last chapter will reason the research and a theory will be formed in relation to the job. Solutions will be provided and new methods may be implemented harmonizing to the demands of the organisation.

Drumhead

Chapter 1 provided an overview of the topic in general and the demand of this survey. This is followed by the profile of the organisation where the research will be conducted and the jobs which will take to the research. The purposes and aims of the survey has besides been discussed and the different phases of the thesis. The following stage that will follow will cast visible radiation on the research and work of other research workers in the field and doctrines of the topic.

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