OPERATIONS MANAGEMENT of manufacturing finished product
How does the company forecast the demand for its finished products? Is the company able to meet the demand of its product with current inventory levels? Is there evidence of lost sales due to the company being out-of-stock? Is there evidence of the company carrying excess inventory (resulting in additional costs, obsolescence, theft, etc.)? Is the current manufacturing capacity of the company in line with planned production and future forecasted demand (level of idle capacity or lack of sufficient capacity)?
Does the company use ERP systems (or other software) to assist in the planning of its production strategies (including MRP)? Is the company able to accurately predict the demand for its dependent materials (work in progress and raw materials)?
How effectively is the company managing its investment in inventory (turnover ratio)? How effectively does the company track/monitor the movement of its inventory through the supply chain? Does the company apply EOQ methods to optimize the investment in raw material inventory?
What techniques do the company use to ensure the quality of its manufacturing operations (e.g. lean manufacturing, six sigma)? Is there any evidence of the effectiveness of the quality of the manufacturing process?
OVERALL ASSESSMENT/OBSERVATIONS of companies supply chain management
Is the company able to supply finished products (with its current capacity) to meet customer demands without interruption?
Is there scope for the company to further reduce cost (e.g. eliminate wasteful activities, finding alternative sources of suppliers, improving management of inventory, etc.)?
Is there scope for the company to further improve the quality of its finished products?
Can the company improve customer satisfaction by changing activities in the supply chain?
To what extent does the company integrate, collaborate, share information and communicate with its partners in the supply chain to become more profitable and sustainable?
Please don’t forget reference and quotation
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