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Material requirements planning ( MRP ) is a production planning , scheduling, and inventory control system used to manage manufacturing processes. Most MRP systems are software -based, while it is possible to conduct MRP by hand as well. An MRP system is intended to simultaneously meet three objectives: Ensure materials are available for production and products are available for delivery to customers. Maintain the lowest possible material and product levels in store Plan manufacturing activities, delivery schedules and purchasing activities. Problems with MRP systems[edit] First problem with MRP systems - the integrity of the data. If there are any errors in the inventory data, the bill of materials (commonly referred to as 'BOM') data, or the master production schedule, then the output data will also be incorrect Second problem - systems require that the user specify how long it will take for a factory to make a product from its component parts (assuming they are all available). Additionally, the system design also assumes that this "lead time" in manufacturing will be the same each time the item is made, without regard to quantity being made, or other items being made simultaneously in the factory. MRP will plan production so that the right materials are at the right place at the right time. MRP determines the latest possible time to product goods, buy materials and add manufacturing value. Proper Material Requirements Planning can keep cash in the firm and still fulfill all production demands. It is the single most powerful tool in guiding inventory planning, purchase management and production control. MRP is easy to operate and adds dramatically to profits. MRP INPUTS The information input into MRP systems comes from three main sources: a bill of materials, a master schedule, and an inventory records file. The bill of materials is a listing of all the raw materials, component parts, subassemblies, and assemblies required to produce one unit of a specific

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PRODUCTION AND OPERATION MANAGEMENT FOR BBA 4 SEMESTER BBD UNIVERSITY

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Material requirements planning(MRP) is aproduction planning, scheduling, andinventorycontrol system used tomanagemanufacturingprocesses. Most MRP systems aresoftware-based, while it is possible to conduct MRP by hand as well. An MRP system is intended to simultaneously meet three objectives: Ensure materials are available forproductionandproductsare available fordeliveryto customers. Maintain the lowest possible material and product levels in store Plan manufacturing activities, delivery schedules and purchasing activities.Problems with MRP systems[edit] First problem with MRP systems - the integrity of the data. If there are any errors in the inventory data, thebill of materials(commonly referred to as 'BOM') data, or the master production schedule, then the output data will also be incorrect Second problem - systems require that the user specify how long it will take for a factory to make a product from its component parts (assuming they are all available). Additionally, the system design also assumes that this "lead time" in manufacturing will be the same each time the item is made, without regard to quantity being made, or other items being made simultaneously in the factory.MRP will plan production so that the right materials are at the right place at the right time. MRP determines the latest possible time to product goods, buy materials and add manufacturing value. Proper Material Requirements Planning can keep cash in the firm and still fulfill all production demands. It is the single most powerful tool in guiding inventory planning, purchase management and production control. MRP is easy to operate and adds dramatically to profits.MRP INPUTSThe information input into MRP systems comes from three main sources: a bill of materials, a master schedule, and an inventory records file. The bill of materials is a listing of all the raw materials, component parts, subassemblies, and assemblies required to produce one unit of a specific finished product. Each different product made by a given manufacturer will have its own separate bill of materials.The master schedule outlines the anticipated production activities of the plant. Developed using both internal forecasts and external orders, it states the quantity of each product that will be manufactured and the time frame in which they will be needed.The inventory records file provides an accounting of how much inventory is already on hand or on order, and thus should be subtracted from the material requirements. The inventory records file is used to track information on the status of each item by time period.MRP PROCESSINGUsing information culled from the bill of materials, master schedule, and inventory records file, an MRP system determines the net requirements for raw materials, component parts, and subassemblies for each period on the planning horizon. MRP processing first determines gross material requirements, then subtracts out the inventory on hand and adds back in the safety stock in order to compute the net requirements.The main outputs from MRP include three primary reports and three secondary reports.BENEFITS AND DRAWBACKS OF MRPMRP systems offer a number of potential benefits to manufacturing firms. Some of the main benefits include helping production managers to minimize inventory levels and the associated carrying costs, track material requirements, determine the most economical lot sizes for orders, compute quantities needed as safety stock, allocate production time among various products, and plan for future capacity needs.MRP systems also have several potential drawbacks. First, MRP relies upon accurate input information. If a small business has not maintained good inventory records or has not updated its bills of materials with all relevant changes, it may encounter serious problems with the outputs of its MRP system.The vendor selection process can be a very complicated and emotional undertaking if you don't know how to approach it from the very start. Here are five steps to help you select theright vendorfor your business. This guide will show you how to analyze your business requirements, search for prospective vendors, lead the team in selectingthe winning vendorand provide you with insight on contract negotiations andavoiding negotiationmistakes.AdsStart a Company in Indiawww.indiafilings.comFast Company Startup across India. Lowest Professional Fee of Rs.4,299Start a Nursery Schoolshemrock.com/StartaSchoolStart Earning From First Month. Low Investment and High Returns.Start Your Own Businesswww.franchiseindia.inExplore 500+ Unique Business Option only at Franchise India. Apply Now Business Outsourcing Business Virtual Office Small Business Support Business Technology Business Advice1.Analyze the Business RequirementsBefore you begin to gather data or perform interviews, assemble a team of people who have a vested interest in this particular vendor selection process. The first task that the vendor selection team needs accomplish is to define, in writing, the product, material or service that you are searching for a vendor. Next define the technical and business requirements. Also, define the vendor requirements. Finally, publish your document to the areas relevant to this vendor selection process and seek their input. Have the team analyze the comments and create a final document. In summary:1. Assemble an Evaluation Team2. Define the Product, Material or Service3. Define the Technical andBusiness Requirements4. Define the Vendor Requirements5. Publish a Requirements Document for Approval Read more aboutHow to Analyze Business Requirements2.Vendor SearchNow that you have agreement on the business and vendor requirements, the team now must start to search for possible vendors that will be able to deliver the material, product or service.AdsSIP Investment Planswww.myuniverse.co.in/ZipSipInvest as low as Rs 1000/month in Top Performing SIP. Free Register!Supplierwww.hktdc.comConnect with over 120,000 suppliers from Hong Kong, China and TaiwanThe larger the scope of the vendor selection process the more vendors you should put on the table. Of course, not all vendors will meet your minimum requirements and the team will have to decide which vendors you will seek more information from. Next write aRequest for Information(RFI) and send it to the selected vendors. Finally, evaluate their responses and select a small number of vendors that will make the "Short List" and move on to the next round. In summary:1. Compile a List of Possible Vendors2. Select Vendorsto Request More Information From3. Write a Request for Information (RFI)4. Evaluate Responses and Create a "Short List" of Vendors Read more aboutHow to Accomplish a Vendor Search3.Request for Proposal (RFP) and Request for Quotation (RFQ)The business requirements are defined and you have a short list of vendors that you want to evaluate. It is now time to write aRequest for ProposalorRequest for Quotation. Which ever format you decide, your RFP or RFQ should contain the following sections:1. Submission Details2. Introduction and Executive Summary3. Business Overview & Background4. Detailed Specifications5. Assumptions & Constraints6. Terms and Conditions7. Selection Criteria

4.Proposal Evaluation and Vendor SelectionThe main objective of this phase is to minimize human emotion and political positioning in order to arrive at a decision that is in the best interest of the company. Be thorough in your investigation, seek input from all stakeholders and use the following methodology to lead the team to a unified vendor selection decision:1. Preliminary Review of All Vendor Proposals2. Record Business Requirements and Vendor Requirements3. Assign Importance Value for Each Requirement4. Assign a Performance Value for Each Requirement5. Calculate a Total Performance Score6. Select a the Winning Vendor 5.Contract Negotiation StrategiesThe final stage in the vendor selection process is developing acontract negotiationstrategy. Remember, you want to "partner" with your vendor and not "take them to the cleaners." Review your objectives for your contract negotiation and plan for the negotiations be covering the following items:1. List Rank Your Priorities Along With Alternatives2. Know the Difference Between What You Need and What You Want3. Know YourBottom LineSo You Know When to Walk Away4. Define Any Time Constraints and Benchmarks5. Assess Potential Liabilities and Risks6. Confidentiality, non-compete,dispute resolution, changes in requirements7. Do the Same for Your Vendor (i.e. Walk a Mile in Their Shoes)6.Contract Negotiation MistakesThe smallest mistake can kill an otherwise productive contract negotiation process. Avoid these ten contract negotiation mistakes and avoid jeopardizing an otherwise productive contract negotiation process. Production planningProduction planningis theplanningofproductionandmanufacturingprocesses in a company or industry. It utilizes theresource allocationof activities of employees,materialsandproduction capacity, in order to serve different customers.[1]Different types of production methods, such as single item manufacturing,batch production,mass production,continuous productionetc. have their own type of production planning. Production planning can be combined with production control into production planning and control, or it can be combined and or integrated intoenterprise resource planning.Production planning is used in companies in several different industries, including agriculture, industry, amusement industry, etc.

Production controlis the activity of monitoring and controlling any particular production or operation. Production control is often run from a specificcontrol roomoroperations room.Production control is the activity of monitoring and controlling a large physical facility or physically dispersed service. It is a "set of actions and decision taken duringproductionto egulate output and obtain reasonable assurance that the specification will be met."Related types of control in organizations[edit]Production control is just one of multiple types of control in organizations. Most commons other types are: Management control,one of the managerial functions like planning, organizing, staffing and directing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in a desired manner. Inventory control,the supervision of supply, storage and accessibility of items in order to ensure an adequate supply without excessive oversupply. Quality control,the process by which entities review thequalityof all factors involved in production.Acceptance samplingFrom Wikipedia, the free encyclopediaAcceptance samplingusesstatistical samplingto determine whether to accept or reject a production lot of material. It has been a commonquality controltechnique used in industry. It is usually done as products leave the factory, or in some cases even within the factory. Most often a producer supplies a consumer a number of items and a decision to accept or reject the lot is made by determining the number of defective items in a sample from the lot. The lot is accepted if the number of defects falls below where the acceptance number or otherwise the lot is rejected.[1]A wide variety of acceptancesampling plansare available.

A point to remember is that the main purpose of acceptance sampling is to decide whether or not the lot is likely to be acceptable, not to estimate the quality of the lot.SO 9000From Wikipedia, the free encyclopediaThis articlerelies too much onreferencestoprimary sources.Please improve this article by addingsecondary or tertiary sources.(March 2012)

TheISO 9000family ofquality management systemsstandards is designed to help organizations ensure that they meet the needs of customers and other stakeholders while meeting statutory and regulatory requirements related to a product.[1]ISO9000 deals with the fundamentals of quality management systems,[2]including the eight management principles upon which the family of standards is based.[3][2][4]ISO 9001 deals with the requirements that organizations wishing to meet the standard must fulfill.[5]Third-party certification bodies provide independent confirmation that organizations meet the requirements of ISO 9001. Over one million organizations worldwide[6]are independently certified, making ISO 9001 one of the most widely used management tools in the world today. However, the ISO certification process has been criticized[7][8]as being wasteful and not being useful for all organizations.[9][10]The ISO 9000 family addresses various aspects of quality management and contains some of ISOs best known standards. The standards provide guidance and tools for companies and organizations who want to ensure that their products and services consistently meet customers requirements, and that quality is consistently improved.Standards in the ISO 9000 family include: ISO 9001:2008 - sets out the requirements of a quality management system ISO 9000:2005 - covers the basic concepts and language ISO 9004:2009 - focuses on how to make a quality management system more efficient and effective ISO 19011:2011 - sets out guidance on internal and external audits of quality management systems.ISO 9001:2008ISO 9001:2008 sets out the criteria for a quality management system and is the only standard in the family that can be certified to (although this is not a requirement). It can be used by any organization, large or small, regardless of its field of activity. In fact ISO 9001:2008 is implemented by over one million companies and organizations in over 170 countries.This standard is based on a number of quality management principles including a strong customer focus, the motivation and implication of top management, the process approach and continual improvement. These principles are explained in more detail in the pdfQuality Management Principles. Using ISO 9001:2008 helps ensure that customers get consistent, good quality products and services, which in turn brings many business benefits.Certification to ISO 9001:2008Checking that the system works is a vital part of ISO 9001:2008. An organization must perform internal audits to check how its quality management system is working. An organization may decide to invite an independent certification body to verify that it is in conformity to the standard, but there is no requirement for this. Alternatively, it might invite its clients to audit the quality system for themselves. Read more aboutcertification to management system standards.1987 version[edit]ISO 9000:1987 had the same structure as the UK Standard BS 5750, with three "models" for quality management systems, the selection of which was based on the scope of activities of the organization: ISO 9001:1987Model for quality assurance in design, development, production, installation, and servicingwas for companies and organizations whose activities included the creation of new products. ISO 9002:1987Model for quality assurance in production, installation, and servicinghad basically the same material as ISO 9001 but without covering the creation of new products. ISO 9003:1987Model for quality assurance in final inspection and testcovered only the final inspection of finished product, with no concern for how the product was produced.ISO 9000:1987was also influenced by existing U.S. and otherDefense Standards("MIL SPECS"), and so was well-suited to manufacturing. The emphasis tended to be placed on conformance with procedures rather than the overall process of management, which was likely the actual intent.[citation needed]1994 version[edit]ISO 9000:1994emphasizedquality assurancevia preventive actions, instead of just checking final product, and continued to require evidence of compliance with documented procedures. As with the first edition, the down-side was that companies tended to implement its requirements by creating shelf-loads of procedure manuals, and becoming burdened with an ISO bureaucracy. In some companies, adapting and improving processes could actually be impeded by the quality system.[citation needed]2000 version[edit]ISO 9001:2000replaced all three former standards of 1994 issue,ISO 9001,ISO 9002andISO 9003. Design and development procedures were required only if a company does in fact engage in the creation of new products. The 2000 version sought to make a radical change in thinking by actually placing the concept ofprocess managementfront and center ("Process management" was the monitoring and optimisation of a company's tasks and activities, instead of just inspection of the final product). The 2000 version also demanded involvement by upper executives in order to integrate quality into the business system and avoid delegation of quality functions to junior administrators. Another goal was to improve effectiveness via process performance metrics: numerical measurement of the effectiveness of tasks and activities. Expectations of continualprocess improvementand tracking customer satisfaction were made explicit.ISO 9000 Requirements include: Approve documents before distribution; Provide correct version of documents at points of use; Use your records to prove that requirements have been met; and Develop a procedure to control your records.2008 version[edit]ISO 9001:2008 in essence re-narrates ISO 9001:2000. The 2008 version only introduced clarifications to the existing requirements of ISO 9001:2000 and some changes intended to improve consistency withISO 14001:2004. There were no new requirements. For example, in ISO 9001:2008, a quality management system being upgraded just needs to be checked to see if it is following the clarifications introduced in the amended version.ISO 9001 is supplemented directly by two other standards of the family: ISO 9000:2005 "Quality management systems. Fundamentals and vocabulary" ISO 9004:2009 "Managing for the sustained success of an organization. A quality management approach"Other standards, likeISO 19011and the ISO 10000 series, may also be used for specific parts of the quality system.

ISO 14000From Wikipedia, the free encyclopediaThis article includes alist of references, related reading orexternal links, butits sources remain unclear because it lacksinline citations.Pleaseimprovethis article by introducing more precise citations.(July 2014)

ISO 14000is a family of standards related toenvironmental managementthat exists to help organizations (a) minimize how their operations (processes, etc.) negatively affect the environment (i.e., cause adverse changes to air, water, or land); (b) comply with applicable laws, regulations, and other environmentally oriented requirements, and (c) continually improve in the above.ISO14000 is similar toISO 9000quality managementin that both pertain to the process of how a product is produced, rather than to the product itself. As with ISO 9000, certification is performed by third-party organizations rather than being awarded by ISO directly. TheISO 19011audit standard applies when auditing for both 9000 and 14000 compliance at once.ISO 14001 sets out the criteria for anEnvironmental Management System(EMS). It does not state requirements for environmental performance, but maps out a framework that a company or organization can follow to set up an effective EMS. It can be used by any organization that wants to improve resource efficiency, reduce waste, and drive down costs. Using ISO 14001 can provide assurance to company management and employees as well as external stakeholders that environmental impact is being measured and improved.[4]ISO 14001 can also be integrated with other management functions and assists companies in meeting their environmental and economic goals.List of ISO 14000 series standards[edit] ISO 14001Environmental management systemsRequirements with guidance for use ISO 14004Environmental management systemsGeneral guidelines on principles, systems and support techniques ISO 14006Environmental management systemsGuidelines for incorporating ecodesign ISO 14015Environmental assessment of sites and organizations ISO 14020series (14020 to 14025) Environmental labels and declarations ISO 14030discusses post-production environmental assessment ISO 14031Environmental performance evaluationGuidelines ISO 14040series (14040 to 14049),Life Cycle Assessment, LCA, discusses pre-production planningand environment goal setting. ISO 14046sets guidelines and requirements for water footprint assessments of products, processes, and organizations. Includes only air and soil emissions that impact water quality in the assessment.