Basics of Production and Inventory Management

The “basics” is the part that many people miss, skip or sometimes just forget. It is a good idea to sometimes, just sit back and relax. Then think about the basic rules and guides of what you’re busy with.

Business principles are very much the same as Personal lifestyle principles. Business decision-making is a little more structured, but the principles are the same.

We all make decisions on a regular basis, every day of our lives. Sometimes without even thinking about it. We can use examples such as: What time to wake up in the morning?, What to eat for breakfast?, What clothes to wear?, the list goes on…..

Production and Inventory Management normally starts with the question, What do we need? This is normally what we describe as “Forecasting“. Now, forecasting is exactly just that, Forecasting. Forecasting, like many other tools we use in business, is an aid for decision-making and is not law. We will talk about “Qualitative ” and “Quantitative” Forecasting in another post. Remember that things change. Be flexible.

The next question: What do we have?, is where we need to have processes and principles in place to control our inventory to have, in our supply chain. We should always strive for least investment in our inventory but also at the same time always being able to meet our customers expectations.

Now, if we are a manufacturing concern, we can not forget that we have to have proper Manufacturing Resource Planning and Controls in place. We need to make plans for short-term, medium-term and long-term, known as the time-span. Long-term includes facilities, equipment, products and processes. Medium-term includes production rates and inventory levels. Short-term includes day-to-day operations, scheduling, dispatching and monitoring.

How do we know what to make and when to make it without any communication. This is where we have to make sure a valid master production schedule is in place through our Sales and Operations Planning communications. We need to make sure using the correct Manufacturing Strategy principles once we know what our customers need.

Now that we know what our customers needs are, when they need it, what we need and how we are going to make it all happen, we should start by our Materials Requirements Planning. Also known as MRP. First we have to understand the differences between “Dependent Demand” and “Independent Demand” items to make sure that a possible  materials plan is in place.

Once we’ve got our materials plan, we should concentrate on our “Capacity Requirements Planning”. We need to know what the difference is between available capacity, required capacity, theoretical capacity, rated capacity and demonstrated capacity. With this goes the understanding of efficiency, utilization and productivity. How all of this work in a manufacturing environment will be discussed in detail in another post.

The next step is the execution phase of manufacturing, planning and control. This is where we distinguish which control system is best to use for our shop floor control that suit our business profile. We will discuss pull-systems versus push-systems including the concept of “KanBan” and “JIT” at a later stage.

We need good quality business partners as our suppliers of raw materials and all other parts and goods that is not part of our manufacturing concern. To be able to get this process under control is to set up one of the most important departments in our company namely Purchasing and receiving. This is now where we have to make sure that proper business procedures and processes are in place to accurately select and actually get involve with the rest of the company, to know their needs and to be able to choose the correct supplier for the specified needs. Make sure we set up a proper flow diagram suitable for our purchasing cycle.

 How are we getting our products to our customers in the best, soonest methods as possible. This is now where we need proper packaging, identifying, storage and moving methods, systems and processes. We will discuss the various modes of transport and right categories of carriers available in a separate post.

While we are working through the various categories and business models, we need to make sure that we carry out the 5s strategies together with lean manufacturing principles under the guarding eye of our Total Quality Management System

Hello world!

My name is Peet du Plessis and I am ready to make a change!

This Blog will be all about “KAIZEN” in Total Supply Chain Management. Now, what does it mean? Kaizen is a Japanese word meaning, continuous improvements, mainly used in “TQMS”, Total Quality Management Systems where we concentrate on product, process and services CONTINUOUS IMPROVEMENTS.

Supply Chain Technology

By training yourself you can become more productive in no time!
We are all given the same amount of time each day, yet some people seem to have all the time in the world, whilst others cannot get through their daily tasks or need to work overtime to catch up.
Not managing our time effectively impacts greatly on those around us, both at home and at work. This results in bad moods, frustration, disorganised, stress, illness, job loss, etc.
Successful people are skilled at managing their time.

See future blogs for tips on successfully Managing your Time.

Watch out for future tips on Continuous improvements, Leadership and Supervisory Skills, Stores and stock control, Basics of Production and Inventory Management, Purchasing Management, Financial Management, Project Management and many more.

If you require tips on any topic, please write and let us know.

Create for yourself the opportunity to continue working and running your business at the same time whilst you get to study in the comfort of your own space, whether at the office or at home.

Today, follow through on your decision to enhance your life and future prospects by enrolling for a course in line with your interests. There are many companies that offers fantastic courses that will provide you and your staff with the knowledge, industry skills, and confidence needed in today’s business environment. Enrolling your staff on a correspondence course will both benefit the staff and your business, which will improve productivity.

Why not reward your staff today?

The more they learn, the more informed you and the staff become, the more pro-active your company become.

As Managers, Parents or Leaders, we have historically relied on the trial-and-error method to develop people around us to become more effective in their lives, in the things they are responsible for, in their future or in their careers, and as a result we have made mistakes in guiding them because we didn’t know any better ourselves or simply, lack the training to make better choices. So often, some of us have learned from our own experiences by improving our leadership skills, while others continue to struggle. Lets make the change together.

For more information, Please contact Peet at: metrology@telkomsa.net

Comments directly from my students:

Fundamentals of Transportation

• He is the most understandable person and who can attend to any queries you have.
•  You can easily communicate with him
• Peet is a very good lecturer and he also understands and knows each one of us very well and he also explain using examples so that everybody can understand easily
  Thanx Peet

Interpersonal & Group Skills

• The lecturers wsa very good we will like to go father with our lecture Mr Du Plessis. He knows how to teach us his patience he makes you understand even the question better
• Mr Peet is a good lecturer and I still like be In his class next term
• Peet he is a good lecture when he teaches you can understand everything he say. I like him to teach us again in next class
• Me as an individual I’d like this course to go to another level because most issue were quoted that we encounter in our workplace. This course was such a challenge for me and most of all with the help of my lecturer he is such an inspiration to me. Now i know if theres a problem at work or in my personal life i must deal with it in a professional manner and that the sky is the limit. thank you for helping me
• I would be gladly satisfied if we can have Mr Du Plessis to be our lecturer if we continue with our studies
• I have no comments my only wish he could come and lecture again, because now my mind is open
• I like my lecturer I wish to be teach by him next time. I wish to pass and go the the next class. I wish to have more time to study english because my english is very poor in talking
• I wish to pass and go to another level and Mr Du Plessis is a good lecturer I wish he could come and teach me again
• He was so good to be with as he is the best person were every one. Were she he must come back again
• Our lecturer is good, have patients with us make example where we don’t understand. That shows that he knows what his job

Introduction to warehousing

• The venue was too far for me and also my company must provide me with transport
  This training centre is far from the people. The allocation is not good. We are strugling to get here using public transport. Mos people out there do not even know about this training centre
• I’m happy with all the aspect in CPT
  I would like to thank you CPT for teaching us, and thank to DHL for giving us a chance to explore to this course it has been nice to work with the lecture, the you Mr Du pleses for your patient in us and educating us more in warehousing that is apreciated. thank you to all

Optimising Production

• Next time please serve refreshments
• Keep the good job you are doing, and repeat to the people who need it.
• The lecturer was well organised and the material is informative and empowering.
• If venue is at the place of work one gets disturbed by the fellow workers who need your attention in the mean time your are at a course. Cources must be your at a course. Cources must be held outside the company premises.
• It was a very pleasant course we have enjoyed the whole of it. I wish to be taught more about the extra course by the same Assessor. Thank you very much.
• The Lecturer was very Clear, in all his examples and repeat the work when there was anybody that did not understand.
• Samples and explanations given were clear and understandable.
• If our manager can also attend this course, so we can all be in line.

 

Understanding the W&R Industry

• Peet was very good its just that we the learner we didn’t give him much support as we should have, we or I personally enjoyed the lessons wishing we had more time but it was great .
• Peet is a good facilitator and I like the fact that he is detailed in his topics of the course.
•  He allows students to voice their opinions on the subject and he is also a good listener
• Very Good
• He is a good a lecturer he makes you understand. He is a polite man

Work Engineering Techniques

• Peet is hard working lecturer he ensures every student understand the subject he also helping students after hours I recommend him strongly
• It would be nicer if answers to mathematical problems were provided in the back of the work book so one can solve them and refer at the back
• I recommend the lecturer to teach other subjects as well

For more information, Please contact Peet at (peetd@telkomsa.net)

Supply Chain Management

Now that wev’e got an idea of what the supply chain is, lets quickly discuss the Supply Chain Management.

Supply Chain Management is the responsibility of all management personel in the company. This is an ongoing process all the time to improve what we are doing in all the departments or groups in a company. We call it “Kaizan”, which means Continuous Improvement. It is the responsibility of our Management team to ensure that we have the best Documented Procedures in place. Procedures are there to describe which processes to follow to get to our end results. We can only achieve good results by being involved with the daily functioning of our processes.

This is where another important function comes in, and that is feedback. We call it upward and downward communication, meaning that if the worker dont know what is expected of them how will they know what and when to do it. The same apply to management. Management need to know everything that affects the performance of their department. This does not mean only bad things. Good things matter even more. This can guide us into the right direction and giving us ideas of what made it go right.

There is three words to remember when we want to succeed in managing anything in life, and this does not mean that only managers should use it. Averybody should, even in your personal lives. The words are:
- Measure
- Control
- Manage
You can not control something if you can’t measure it.
You can not manage something if you can’t control it.

Now you will ask, but what do we measure? You measure what is important to YOU. We call it KPI’s meaning Key Performance indicators and KPA’s meaning Key Performance Activities. These key’s should be determined by each and everyone on their own, because everybody’s importance in life is different.

If you are interested in learning new things every day, Please e-mail:
peetd@telkomsa.net

Supply Chain

Supply Chain means that we need to supply to our Customer exactly what the Customer have ordered. How we do this is what is important and what we generally need as a company is as important. Generally we will use individuals and or groups that will manage our Finance, Marketing, Sales, Logistics, Procurement, Purchasing, Quality, Human Resources, Technical, Manufacturing in the most efficient way. Is That however enough? We should have certain Activities, Methods, Techniques, Processes and Procedures in place, in order to satisfy the Customers needs.

A Supply Chain is as strong as its weakest link. Meaning that you should compare your Supply Chain to a physical chain used to lift or pull something. The weight that the chain need to carry will determine the size of the links required in the chain. The weakest link in the chain will determine the strength of the total chain.

These links of the chain can be described as your people, processes, procedures, techniques, technology, etc. There are many to mention. We prefer to refer to the 8M’S when it comes to training. It is vitally important for any company to know what their load is that they need to carry. This will determine the strength of the links required to achieve the Companies Goal.

If we as a team in a company can improve our skills to achieve what is required to make a change for the better, we will succeed. When we cannot get what we need, we need help. Do not be afraid to ask for help. It does not mean that you are incompetent. Nobody knows everything. You sometimes just need that little push to get over the next hurdle.

We are in business for one thing and one thing only. Money. Companies need to make a profit to stay in business. People need to earn money to be able to live the life’s we do. If we all work towards a common goal, we should be able to make the money we require to stay in business and live the life’s we live. Continuously Improving our Supply Chain will ensure exactly that.

Learn more in our next Posts which will cover more specific components.

If you are interested in learning new things every day, Please e-mail:
peetd@telkomsa.net

How to improve my Life?

By using my own mind.

The worse thing to do is to worry about what other people think.

Do not try to be someone else.
Who am I? This is what is important.
What have I achieved up to now, is there something else I want to or need to improve?
Spend time alone and make notes of your thoughts.
Set a goal.
Always remember that a gaol is not the same as a dream. A goal is something you can achieve in a certain period of time. A dream is like winning the lotto.
What do I want to achieve?
Jot down notes and place prominently where it can be viewed continuously during the day.
Ask yourself what you need, to meet your goal, and make notes.
Don’t be afraid or shy to ask people, you may be surprised how willing they would be to help you!
Set a time limit, short-term and long-term deadlines.
These deadlines must be achievable. As you meet each deadline, cross it off your list and award yourself.
As you reach each deadline, set new ones.
Remember that life constantly changes. Everybody makes mistakes, and if you do, do things differently next time round.
Remember, The key to succeed in what we want is to move forward. Work hard and think positive.
You have control over yourself , you decide who you, are and who you would like to be.