Production Management Essay Example | Topics and Well Written Essays - 2500 words

Production Management - Essay Examplen effective supply chin in production is crucil to the success of business. whizz recent study of the US Food Industry estimted tht poor coordintion mong supply chin prtners ws w cleave $30 billion nnully (Crosby, 2004). This cn be illustrted if we consider the trditionl view of supply chin s similr to pipe tht crries the service or product being provided. When the pipe becomes clogged, the entire system must be flushed to solve the problem. Similrly, when supply chin does non work properly, business must flush the chnnel becuse it cnnot pinpoint where the problem is. This cuses compnies to lose profits nd sles.Now, however, compnies re implementing sensitive type of supply chin mngement, where the firm views the supply chnnel s whole system present(prenominal)ed of concentrting of ech prt of the process. The compny focuses on ll efforts, from the procurement of rw mterils to the distribution of the finished product, nd how ech effort r eltes to the others (ndrski, 1998). This llows more communiction to exist within the pipe nd problems to be more esily identified.In the following pper I will present fundmentls of effective production mngement tht consists of the chin from suppliers to customers nd the processes such s people, process nd plnt. I will introduce the notion of vilbility, the single minute exchnge of evanesce nd throughput.The production supply chin is trditionlly chrcterized s stble system in which components nd goods move smoothly from suppliers to ssembly to customers. For exmple, pckged consumer goods mnufcturer, for instnce, comprises mnufcturing, pckging, distribution, wrehousing, nd retiling. The concept of the customers demnd chin, which trnsfers demnd from mrkets to suppliers, is significntly less fmilir. To give one exmple,