Material management include all activities in the flow of material from the supplier to the consumer.
Such activities includes physical supply, operations planning and control, and physical distribution.
There are 2 types of output will be produce:
1) Goods (tangible) - physical object, something can touch, feel or see.
2) Services (intangible) - performance of some useful function such as banking, medical care, restaurant, and social services
1.0 Operating Environment (GECCQ)
1.1 Factors affecting operating environment
1) Government - register company to establish, follow government regulation, limit number of export (TEUs - twenty equivalent units), safety and taxation.
2) Economy - economy recession or inflation and population, labor.
3) Competition - competed with each other company, internet business competitor.
4) Customer - much more demanding. Characteristics & selection customer expect in the product and services they buy are:
~ a fair/reasonable price
~ high quality products and services
~ delivery lead time
~ better resale and after sale services
~ product and volume flexibility
5) Quality - provide quality that not only meet customers's high expectation but exceed them.
1.2 Order Qualifier and Order Winner
1. Order Qualifier – customer requirement based on price, quality, delivery.
2. Order Winner – competitive characteristics, or combination of characteristics that persuade a customer to choose company’s product or services.
1.3 Manufacturing strategy
1.3.1 Delivery lead time
1) Engineer to order (ETO) - customer specification require unique engineer design, long
delivery lead time
2) Make to order (MTO) - manufacturer doesn't start to make the product until a order is received, delivery time is reduced.
3) Assembly to order (ATO) - product are made from standard component that manufacturer
can inventory and assembly according to order, delivery lead time is reduce further.
4) Make to stock (MTS) - supplier manufacturer the goods an sell from finished goods inventory, delivery lead time is shortest.
Such activities includes physical supply, operations planning and control, and physical distribution.
There are 2 types of output will be produce:
1) Goods (tangible) - physical object, something can touch, feel or see.
2) Services (intangible) - performance of some useful function such as banking, medical care, restaurant, and social services
1.0 Operating Environment (GECCQ)
1.1 Factors affecting operating environment
1) Government - register company to establish, follow government regulation, limit number of export (TEUs - twenty equivalent units), safety and taxation.
2) Economy - economy recession or inflation and population, labor.
3) Competition - competed with each other company, internet business competitor.
4) Customer - much more demanding. Characteristics & selection customer expect in the product and services they buy are:
~ a fair/reasonable price
~ high quality products and services
~ delivery lead time
~ better resale and after sale services
~ product and volume flexibility
5) Quality - provide quality that not only meet customers's high expectation but exceed them.
1.2 Order Qualifier and Order Winner
1. Order Qualifier – customer requirement based on price, quality, delivery.
2. Order Winner – competitive characteristics, or combination of characteristics that persuade a customer to choose company’s product or services.
1.3 Manufacturing strategy
1.3.1 Delivery lead time
1) Engineer to order (ETO) - customer specification require unique engineer design, long
delivery lead time
2) Make to order (MTO) - manufacturer doesn't start to make the product until a order is received, delivery time is reduced.
3) Assembly to order (ATO) - product are made from standard component that manufacturer
can inventory and assembly according to order, delivery lead time is reduce further.
4) Make to stock (MTS) - supplier manufacturer the goods an sell from finished goods inventory, delivery lead time is shortest.
1.0
1) Material management is a coordinating function responsible for planning and controlling material flow.
2) Objective:
~maximize the use of the firm resources
~provide the required level of customer services
1.6 PHYSICAL SUPPLY OR DISTRIBUTION (TDWPMO)- Transportation
- Distribution inventory
- Warehousing
- Packaging
- Material handling
- Order entry
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