Materials Management & Manufacturing
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As a manager of a manufacturing facility, it is more necessary than ever to improve the overall productivity of the operation. While such improvement requires an integrated effort involving all functional areas of the facility, specific actions are required within each functional area. This paper focuses on one of the functional areas in a manufacturing operation that is critical to the overall productivity of the facility·materials management. Materials management involves purchasing, supplier management, materials handling within the facility, and extensive coordination among all functional areas of the facility in conjunction with materials management (Scapens, Jazayeri, & Scapens, 1998).The best solution for the problem facing the manager of a manufacturing facility in relation to the materials management function involves the joint application of three important concepts·just-in-time (JIT) supply management, supply-chain management, and the application of information technology (IT) to the materials management process. JIT, supply-chain management, and IT support must function in conjunction with one another (Taninecz, Lee, Feigenbaum, Nagle, & Ward, 1997). For purposes of discussing the solution to the problem facing a manufacturing facility manager, however, JIT, supply-chain management, and IT support are considered separately. The introduction of high-tech concepts into manufacturing processes,
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orth creates a need for radical changes in traditional cost accounting procedures in the manufacturing facility (Scapens, Jazayeri, & Scapens, 1998). The changes that affect cost accounting to a significant extent are as follows:
1. WIP is eliminated by reducing batch sizes. The preferred batch size under a JIT system is one.
2. Raw materials inventories are eliminated. This goal is accomplished by requiring suppliers to deliver directly to the shop floor just-in-time for use in the manufacturing process.
3. Scrap and rework are eliminated. This goal is accomplished through an emphasis on total quality control of design, of the manufacturing process, and of materials.
4. Finished goods inventories are eliminated. This goal is accomplished by reducing lead times, so that, in effect, all products are made to order.
5. Materials handling costs are eliminated. This goal is accomplished by redesign of the shop floor to permit materials to move directly between adjacent work centers.
Major changes in cost accounting procedures for manufacturing firms are dictated in 10 separate areas by the introduction of JIT (Scapens, Jazayeri, & Scapens, 1998). These 10 areas are as follows:
1. Collection of costs against work ord
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Some common words found in the essay are:
Jazayeri Scapens, Sakakibara Schroeder, Nagle Ward, Stein Sweat, Supply-Chain Management, JIT Revisions, JIT Strong, MANUFACTURING Introduction, EDI EDI, Industry Week, manufacturing facility, supply-chain management, jit system, cost accounting, sakakibara schroeder 1995, materials management, manufacturing management, sakakibara schroeder, lead times, schroeder 1995, flynn sakakibara, flynn sakakibara schroeder, jazayeri scapens 1998, eliminated goal accomplished, scapens jazayeri scapens,
Approximate Word count = 2001
Approximate Pages = 8 (250 words per page)
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