INVENTORY MANAGEMENT TQM Total Quality Mgmt.

1. INVENTORY MANAGEMENT &TQM (Total Quality Mgmt.)

2. INVENTORY MANAGEMENT

3. Inventory is a stock of physical items such as materials, components, work-in-progress, finished goods, etc. held at a specific location at a specific time. Inventory is a list of names, quantities and/or monetary values of all or any group of items.

4. Characteristics of INVENTORY Inventories serve as cushions to absorb shocks Inventory for an Organisation is a necessary evil. Inventories are the result of many interrelated decisions & policies within an organisation. Inventory provides production economies.

5. Importance Of Inventory Provide and maintains good customer service Enable smooth flow of goods through the production process. Provides protection against the uncertainties of demand & supply Various production operations can be performed economically & independently Ensures reasonable utilisation of equipment & labour. With purchases in bulk discount can be availed.

6. INVENTORY CONTROL

7. Inventory control is the technique of maintaining the size of the inventory at some desired level keeping in view the interests or objectives of an organization. Inventory control keeps track of inventories. Inventory control is concerned with various items stocked at predetermined level or within some safe limits. Inventory control is a system of ordering based on the maintenance of the stock in a store using re-order rule based on the stock level.

8. Objectives Of Inventory Control Protection against fluctuations in demand Better use of men, machine & material Protection against fluctuation in output Better service to customer Control of stock volume Control of stock distribution

9. Process of Inventory Control Determining optimum inventory size Determining the degree of control Designing the inventory system Planning the inventory control organisation

10. TQM (Total Quality Mgmt.)

11. "TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society." TQM is a strategic approach to produce the best possible product & service through constant innovation by doing right things, first time & every time. It places emphasis on prevention rather than rectification.

12. TQM is conceptualized into 3 processes: Quality Process: Understanding who the customer is, what are his needs & taking steps to satisfy the needs of the customer. Management Process: it comprises of planning, organising, directing & controlling. It stresses continuous improvement to keep up with- Changing requirements Competitive environments Technological advancement

13. People Process: involves dedication & commitment & should exhibit: Intellectual honesty Self control Respect for others.

14. FEATURES OF TQM

15. Customer Focus Continuous Process Defect-free Approach Employees Involvement Recognition & Rewards Synergy in Team Work Techniques System Approach

16. TQM Principles

17. Management Commitment Plan (drive, direct) Do (deploy, support, participate) Check (review) Act (recognize, communicate, revise) Employee Empowerment Training Suggestion scheme Measurement and recognition Excellence teams

18. Fact Based Decision Making SPC (statistical process control) The 7 statistical tools Continuous Improvement Systematic measurement Excellence teams Cross-functional process management Attain, maintain, improve standards Customer Focus Supplier partnership Service relationship with internal customers Never compromise quality Customer driven standards

19. � Men's natures are alike, it is their habits that carry them far apart. �"