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STORES

MANAGEMENT
Stores Management

By Sarah
Stores Management

 Storesis used to cover all the aspects of


preservation of goods.

 Storageis the function of receiving, storing


and issuing materials.
Importance

 Ready Accessibility
 Efficient Space Utilisation
 Minimisation of materials deterioration
 Material handling equipment
 Physical counting
Functions
 Receive
 Storage and Preservation
 Meet demands
 Minimise obsolescence
 Highlight Stock Accumulation
 Good housekeeping
 Assist in Verification
JUST-IN-TIME
Sources: Indian Statistical Quality Control..
Web search
What is Just-in-Time?
 Management philosophy of continuous and forced
problem solving.
 Supplies and components are ‘pulled’ through system
to arrive where they are needed when they are
needed.
 Originated in Japan; developed over 40 years.
 SHINGO

 Popularized by Toyota; now used globally.


Why is Production Difficult?
 Demand is uncertain and variable.
 Same equipment and people are used to make
a variety of products.
 Switching products takes time.
 Materials are defective.
 Deliveries are variable (late).
 Equipment fails, people make mistakes, etc.
Solution: Just-In-Time
 Usejust-in-time to identify and solve
problems that create inventory.
Reduce setup costs to switch products.
Eliminate defective materials, late
deliveries, equipment failures,
mistakes, etc.
“Just-in-Time” Production
 Produce in small lots to replenish stock
actually sold.
 Sales PULL product (and parts) through plant.

 Small lot sizes mean:


 Small work-in-process inventories.
 Small final product inventories.
 Quick response to changes and defects.
Push versus Pull System
 Pushsystem: material is pushed
(according to forecasts) to downstream
workstations.

 Pullsystem: material is pulled (by sales


to customers) to a workstation just as it is
needed.
PUSH PULL
Pre-designed and fixed Flexible and smaller,
assembly lines. adaptable machines.

Abundant W-I-P Stockless production


inventories

Specialized workers Multi-skilled workers

Workers have to follow Workers given authority


schedules to make decisions
What Does Just-in-Time Do?

 Attacks waste.
 Anything not adding value to the product.
 Exposes problems caused by variability.
 Variability
in demand, deliveries, materials,
equipment, specifications, etc.
 Achieves streamlined production by
reducing inventory.
Waste

Waste is “anything other than


the minimum amount of
equipment, materials, parts,
space, and worker’s time, which
are absolutely essential to add
value to the product.”
— Shoichiro Toyoda
President, Toyota
Types of Waste
 Overproduction

 Waiting time, lead time


 Transportation

 Inefficient processing
 Inventory

 Unnecessary motion/usage
 Product defects
JIT Reduced Waste
at Hewlett-Packard
Waste Reduction (%)
Setup Time 20%
Scrap 30%
Finished Goods Inv. 30%
Space 40%
Lead Time 50%
Raw Material 50%
Inventory
Work-in-Process 82%
Inv.
0% 20% 40% 60% 80% 100%
JIT Results
 Reduced waste and improved quality.
 Reduced delays and faster throughput.
 Reduced cost and/or increased
margin.
 Reduced variability.
 Faster response to the customer.

A competitive advantage!
JIT SUCCESS FACTOR

Employee Suppliers
Empowerm Layout
ent

JIT
Quality Inventory

Preventiv
e Schedulin
Maintena g
nce
Inventory
 JIT objective: Eliminate inventory.
 JIT requires:
 Small lot sizes.
 Low setup time.
 Just-in-time deliveries.
 Deliveries direct to point of use (not stockroom)

 JITinventory: Minimum inventory to keep


system running.
Reducing Lot Sizes Increases
the Number of Lots
Customer Lot size = 5
orders 10 Lot 1 Lot 2

Lot size = 2
Lot 1 Lot 2Lot 3 Lot 4 Lot 5
Suppliers
 JITobjective: Frequent on-time deliveries
of small lots of high quality.
 Buyer and supplier form JIT partnerships
to eliminate:
 Unnecessary activities.
 In-plant inventory.
 In-transit inventory.
 Poor suppliers.
Scheduling
 JITobjective: Simple system to pull product
through plant in small lots.
 JIT requires:
 Communicating schedules to suppliers.
 “Level”
schedules: production each day equals
demand.
 Freezing part of schedule nearest due date.
 Small lots.
 Kanban techniques.
Layout
 JIT
objective: Reduce movement of
people and material.
 JIT requires:
 Delivery directly to work areas.
 Short distances.
 Little space for inventory.
 Moveable or changeable machines.
 Work cells for product families.
Preventive Maintenance (PM)
 JIT objective: Prevent failure.
 JIT requires:
 Scheduled & daily preventive maintenance.
 Operator performs preventive maintenance.
 Operator knows machine and is responsible for
product quality.
 Cleanliness and simplicity are keys.
J-I-T & Quality
 JIT
exposes quality problems by
reducing inventory.
 JITlimits number of defects produced
with small lots.
 JIT requires TQM.
 Statistical process control (SPC).
 Worker involvement & empowerment.
 Immediate feedback.
Employee Empowerment
 Getting
employees involved in product &
process improvements.
 Employees know job best!
 JIT requires:
 Empowerment.

 Cross-training.

 Training support.
 Few job classifications.
BENEFITS OF JIT
 Better quality products
 Quality is the responsibility of every worker, not
just quality control inspectors
 Reduced scrap and rework
 Reduced cycle times
 Lower setup times
 Smoother production flow
 Less inventory
BENEFITS OF JIT
 Cost savings
 Higher productivity
 Higher worker participation
 More skilled workforce, able and wiling to switch
roles
 Reduced space requirements
 Reduced work in progress

 Improved supplier relationships


BASIC PRERREQUITES
OF EFFICIENT STORES
MANAGEMENT
By,

VANISHRI.P

0816117
Stores layout
Stores layout is a fundamental factor in determining the
efficient performance of the department. The following factors
deserve serious consideration, while planning for the stores
layout.

 1. Provisions for easy receipt, storage and disbursement of


materials, nearness of point of use.
 2. Minimum handling and transportation of materials,
goods accessibility for handling equipment, and personnel.
 3. Adequate capacity provision for flexibility for future
expansion.
 4. Efficient utilization of floor space and height.
 5. Clear identification of materials, quick location of items
and ease of physical counting.
 6. Protecting against waste, deterioration, damage
and pilferage.
 7. Design the buildings’ physical appearance to
create goodwill and to invite business.
 8. Arrange storage for fast and easy customer order
processing.
 9. Use compatible storage or display equipment to
create good interior appearance.
 10. Install good lighting to prevent theft, parts
damage and errors in stocking.
 11. Plan storage for easy shelf-life rotation to
permit first-in-first-out control.
 12. Segregate rebuilt, remanufactured, used, and
new merchandise.
 13. Include safety as a part of the facility plan.
 14. Maintain a periodic house- keeping and
rearrangement plan.
Total Quality Management

By
Shiva prakash
Reg.no. 0 816113
Introduction
In the early days industrialization quality of
product was
Defined by its length, width, height, weight and
volume
Or by some physical or chemical characteristics.
subsequently it was argued that the right quality
is related to the purpose for which the product
or service is required, for example in a humid
environment one would like to use nuts and
bolts of a material that do not rust due to the
presence of moisture, say for example aluminum
or stainless steel.
The concept of quality is very
rapidly changing with the
emphasis on the system and
process that govern the other
aspect of quality. This new
concept on quality has taken
priority in many companies to
retain their competitive
postion in the international
anging concept of qualities could be viewed as follow

Quality as an international business language.


Quality for customer satisfaction.
Quality for business effectiveness.
Quality as a competitive connector.
Quality in partnership.
Quality in leadership.
Quality in manegerial activity-based accounting.
Quality in time management.
Total Quality Management

By Jim Mathew
Organizational Quality Control
 Quality control is staff function concerned
with the prevention of defect in
manufacturing . So that item may be made
right at the first time and nit to be rejected
later
Benefit of Quality Control
 Minimum scrap or rework due to reduce defective
 Reduced cost of labour and material as a result of reduced
defective
 Uniform Quality and reliability of product in increasing sales turn
over
 Reduced variability resulting in – higher quality and reduced
production bottle necks help
 Reduced inspection and reduced inspection cost
 Reduced customer complaint
 Increased quality consciousness among employee
 Higher operating efficiency etc
Total Quality Management
A philosophy that involves everyone in an
organization in a continual effort to
improve quality and achieve customer
satisfaction
 TQM means
 Top Management commitment to quality
 Customer involvement and focus
 Employment involvement and practice
 Leaderships and strategic planning for quality
 Company – Wide quality and interest
 Continues improvement
 Customer satisfaction and delight
Principles of TQM
 TopManagement Policy
 Quality control training for Everyone
 Quality at product
 Quality material from suppliers
 Quality control in product
 Quality control in disribution
Six Basic Concept of TQM

 Top management commitment and support


 Focus on the customer
 Employ involvement
 Continues improvement
 Partnership with Suppliers
 Establishing Performance measures for process
Essentials of TQM Focus

 Customer satisfaction
 Leader ship
 Quality Policies
 Organizational Structure
 Employee Involvement
 Quality Cost
 Suppliers selection and development
 Recognition and reward
Scope of TQM
 Are integrated organizational infrastructure
 A set of management Practices
 A wide Variety of tools and techniques

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