Materials Management E-Book

Stan C. McDonald

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 271

Veröffentlichungsjahr: 2009

Beschreibung

A solid introduction to materials management and the tools needed to create a world-class materials management program This nuts-and-bolts guide presents an overview of the inner workings of the materials process, as well as the best practices to achieve a world-class operating system that will help to eliminate ineffective materials management. Coverage includes discussion of material requirements planning, planning parameters, electronic data interchange, and material control graphs and reports, among many other topics. Thorough and practical, Materials Management explains the impact that inadequate inventory control has on a company and how these poor controls can reduce production, cause inefficiencies in labor, create excessive inventory, and increase freight expenses. Stan McDonald (Northville, MI) is an independent consultant on materials management. Throughout his 30-year career, he has held various positions in the supply chain/materials management arena.

Leseprobe

Table of Contents

Title Page

Copyright Page

Dedication

PREFACE

Acknowledgements

CHAPTER 1 - BEFORE COMPUTER SYSTEMS

INVENTORY CARD CONTROL SYSTEM

ADVANTAGES OF THE MANUAL CARD SYSTEM OF INVENTORY CONTROL

BILL OF MATERIALS ACCURACY

PICK TICKET SYSTEM

ADVANTAGE OF COMPUTER-GENERATED INVENTORY CONTROL SYSTEMS

CHAPTER 2 - MATERIAL REQUIREMENTS PLANNING

FOUNDATION FOR MATERIAL REQUIREMENTS PLANNING

IMPORTANCE OF PLANNING PARAMETERS

UNDERSTANDING THE IMPACT OF MRP

CHAPTER 3 - THE RAGING FIRE AND FIREFIGHTING

BURNING UP COMPANY PROFITS

GET IT CORRECT AT THE BEGINNING

DEVELOP GOOD SCRAP REPORTING METHODS

OWNERSHIP OF INVENTORY

VANISHING INVENTORY ISSUE

RESPONSIBILITY FOR INVENTORY: THE FEW OR THE MANY?

CHAPTER 4 - A STRONG, WELL-BALANCED MATERIALS ORGANIZATION

MATERIALS MANAGEMENT STATUS IN ORGANIZATIONS

OBSTACLES PREVENTING MATERIALS MANAGEMENT SUCCESS

MEASURING MATERIALS MANAGEMENT SUCCESS

CHAPTER 5 - GENERAL REVIEW OF MATERIALS PRACTICES

CALCULATING INVENTORY TURNS

OBSOLETE DOLLARS CALCULATED IN INVENTORY TURNS

CUSTOMER-GENERATED OBSOLESCENCE

OBSOLESCENCE CONTROLS

WHAT ARE THE CUSTOMER RATINGS?

HOW DOES THE SHIPPING DEPARTMENT FUNCTION?

HOW DOES THE RECEIVING DEPARTMENT FUNCTION?

CHAPTER 6 - LEAD TIME

LONG LEAD-TIME ITEMS

MANAGING CUSTOMER CHANGES

INTERNATIONAL RELEASES

SUPPLIER LEAD TIME

INTERNATIONAL LEAD TIMES

TRANSIT TIME VERSUS FREIGHT COSTS

LOWER LEAD-TIME INHIBITERS

CHAPTER 7 - INVENTORY ACCURACY

MANAGING THE COMPUTER-CONTROLLED INVENTORY SYSTEM

LIMITING ACCESS TO MAKE CHANGES

INVENTORY ACCURACY INFLUENCERS

CHAPTER 8 - CYCLE COUNTING

CONVINCING ARGUMENT FOR CYCLE COUNTING

COMPUTER-GENERATED CYCLE COUNTS

CYCLE-COUNTING PROFICIENCY

CYCLE-COUNTING CRITERIA

CHAPTER 9 - RELEASES TO SUPPLIERS

MANAGING DEMAND IN THE PLANT

SUPPLIER RELEASE GENERATION

SHORTAGE CONTROL

SUPPLIER CHARGE-BACK SYSTEM

CUSTOMER-MANDATED SUPPLIERS

CHAPTER 10 - PLANNING PARAMETERS

MAKE-TO-ORDER PLANTS

CONTROLLING PLANNING PARAMETERS

CHAPTER 11 - ELECTRONIC DATA INTERCHANGE

CHAPTER 12 - MATERIALS CONTROL GRAPHS AND REPORTS

ON-TIME DELIVERY

PREMIUM FREIGHT

INVENTORY ACCURACY

CYCLE COUNTING

PRESENTATIONS

INTERPLANT GRADING SYSTEMS

CHAPTER 13 - OBSOLESCENCE

BALANCE-OUT OF PRODUCT OR COMPONENTS

PREVENTING OBSOLESCENCE

AVOIDING SUPPLIER AND CUSTOMER OBSOLESCENCE

CHAPTER 14 - PHYSICAL INVENTORIES

INVENTORY RECONCILIATION

CHAPTER 15 - RECEIVING

REVIEW OF RECEIVING PRACTICES

VERIFICATION PROCESS

BEST PRACTICE

DAMAGED MATERIALS

LABEL DEFICIENCIES

COUNT DISCREPANCIES

AN ALTERNATIVE SYSTEM

CHAPTER 16 - SHIPPING

CUMULATIVE BALANCES

ELECTRONIC RELEASES

ANNUAL CUSTOMER VOLUMES

OWNERSHIP OF SHIPMENTS TO CUSTOMERS

SHORT SHIPMENTS

SHIPPING ERRORS

CHAPTER 17 - CARRIER SELECTION

ANALYZING FREIGHT EXPENSES

FREIGHT MANAGEMENT

CHAPTER 18 - SUPPLIER SELECTION AND RATINGS

SUPPLIER SELECTION

SUPPLIER DELIVERY RATING SYSTEMS

CHAPTER 19 - PRODUCTION

PRODUCTION SCHEDULING

ALTERNATIVE APPROACHES FOR PRODUCTION SCHEDULING

CHAPTER 20 - BEST MATERIALS CONTROL EFFORT

BILL OF MATERIALS: A GOAL OF 100 PERCENT ACCURACY

PLANNING PARAMETERS: 100 PERCENT ACCURATE

BAR CODE SCANNING

CALCULATING THE MINIMUM FOR COMPONENT INVENTORY

DEVELOPING TRANSPORTATION ROUTINGS

CALCULATING THE MAXIMUM INVENTORY LEVELS

DAILY RAW MATERIALS SCANNING IN A CLOSED-LOOP PROCESS

SHIPPING AND RECEIVING RAW MATERIALS

SKIP-LOT INSPECTION

MOVEMENT OF RAW MATERIALS TO LINE-SIDE AREAS

CHAPTER 21 - ADVANCE LOGISTICS PLANNING

Packaging Information

Logistics Information

APPENDIX A - MEXICAN PLANTS

APPENDIX B - MANAGEMENT PHILOSOPHIES

APPENDIX C - COLOR CODE MANAGEMENT STYLES

INDEX

Copyright © 2009 by Stan McDonald. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

McDonald, Stan, 1952-Materials management : an executive’s supply chain guide / Stan McDonald. p. cm.

Includes bibliographical references and index.

eISBN : 978-0-470-44909-7

1. Business logistics-Management. 2. Material requirements planning. 3. Inventory control. I. Title.

HD38.5.M396 2009658.5—dc222008040317

This book is dedicated to several senior managers who had faith in me to resolve some of the challenges in materials management:

Tomas Hagberg, who inspired me to move up in my first organization.

Mike Sanna, who is a superior manager and whose support for my materials efforts is sincerely appreciated.

Jim McManus, who had faith in me to resolve some difficult issues in a Mexican plant. My family will remember your kindness.

Ron Pratt, who gave me the opportunity to achieve my lifelong dream of director with the independence to make the decisions that were best for materials operations.

My wife, whose undying support has made it possible to work for months at a time away from home.

PREFACE

This book was written to provide an overview of the most critical parts of the materials management process and provide the proven answer to any inventory management problem. The proven answer to an inventory management problem is the closed-loop system of controls described. None of the parts described in the book should be compromised. A failure to implement any part of this process will result in a compromise of the inventory integrity, and the system will eventually break down. Inventory integrity is the driver of a good materials management system. A good materials system provides an unbroken supply of components to production.

As a prerequisite to implementing the system described in the book, there needs to be a complete focus on bill of materials accuracy and a resolution to any scrap reporting process that is lacking controls.