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Question 1 supply chain managing

Supply chain management (SCM) is the active management of supply chain activities to
maximize customer value and achieve a sustainable competitive advantage. It represents a
conscious effort by the supply chain firms to develop and run supply chains in the most
effective & efficient ways possible. Supply chain activities cover everything from product
development, sourcing, production, and logistics, as well as the information systems needed
to coordinate these activities.

The concept of Supply Chain Management (SCM) is based on two core ideas:

1. The first is that practically every product that reaches an end user represents the
cumulative effort of multiple organizations. These organizations are referred to
collectively as the supply chain.
2. The second idea is that while supply chains have existed for a long time, most
organizations have only paid attention to what was happening within their “four
walls.” Few businesses understood, much less managed, the entire chain of activities
that ultimately delivered products to the final customer. The result was disjointed and
often ineffective supply chains.

In a sense, all wholesale business relationships are customer relationships –

either you have a customer, or you are a customer. Supply chain management is
about managing both ends of this spectrum ––getting stock from your vendors,
and delivering product to your retailers ––with the ultimate goal of keeping
supplies flowing smoothly from your suppliers, through your production and
delivery process and on to the customer. Gibson, Hanna, et al. describe the
wholesale supply chain in The Definitive Guide to Integrated Supply Chain
Management. According to them, “wholesalers and distributors are
intermediaries that provide value-added services to manufacturers and retailers.
Wholesalers buy products in bulk from manufacturers and sell the products in
smaller quantities to retailers, provide storage facilities to reduce the need for
manufacturers and retailers to hold large inventories, and offer delivery services
to retailers.” The people and places involved in a wholesale supply chain

 Vendors: Manufacturers who supply the stock needed to ma ke your
products, or who supply products for resale.
 Wholesalers and Distributors: “Middlemen” who provide services that
move products from manufacturers to customers, and who may also take
components and manufacture products for sale.
 Warehouses: Where inventory is stored. Inventory can either be
components for manufacture, or products to be sold to customers.
 Transportation and Logistics: Organizations that will bring supplies to
you and move products to your customers.
 End Customer: The people or organizations that will ultimately purchase
the product. For wholesalers, these are usually retail businesses.

For wholesale distributors, managing all these people and places effectively is
extremely important, since without supplies your business has not hing to sell,
without customers you have no one to sell to, and without profit your business
won’t succeed.


Supply chain management also includes the manufacturing processes required to

make the products that will be sold to the end customer . This includes
scheduling, testing, packaging and delivery, and provides many opportunities to
measure and monitor performance. For wholesalers and distributors, this is the
“value added” part of the process that offers many opportunities to improve
quality while reducing costs.


Often referred to as logistics, getting products to your end customers is a critical

part of the supply chain. This is where customer relationships can be made or
broken. Managing and receiving sales orders, managing warehouse activities,
picking orders, selecting carriers and invoicing are all important parts of
ensuring the customer receives what they want, when they want it.

Question 2 A) what Is TQM

A core definition of total quality management (TQM) describes a management approach to

long-term success through customer satisfaction. In a TQM effort, all members of an
organization participate in improving processes, products, services, and the culture in which
they work.

TQM can be summarized as a management system for a customer-focused organization that

involves all employees in continual improvement. It uses strategy, data, and effective
communications to integrate the quality discipline into the culture and activities of the
organization. Many of these concepts are present in modern quality management systems, the
successor to TQM. Here are the 8 principles of total quality management:

1. Customer-focused: The customer ultimately determines the level of quality. No matter

what an organization does to foster quality improvement—training employees, integrating
quality into the design process, or upgrading computers or software—the customer
determines whether the efforts were worthwhile.
2. Total employee involvement: All employees participate in working toward common
goals. Total employee commitment can only be obtained after fear has been driven from
the workplace, when empowerment has occurred, and when management has provided the
proper environment. High-performance work systems integrate continuous

improvement efforts with normal business operations. Self-managed work teams are one
form of empowerment.
3. Process-centered: A fundamental part of TQM is a focus on process thinking. A process is
a series of steps that take inputs from suppliers (internal or external) and transforms them
into outputs that are delivered to customers (internal or external). The steps required to
carry out the process are defined, and performance measures are continuously monitored in
order to detect unexpected variation.
4. Integrated system: Although an organization may consist of many different functional
specialties often organized into vertically structured departments, it is the horizontal
processes interconnecting these functions that are the focus of TQM.


 Here are the 7 fundamental principles of total quality management:

 1. Customer Focus

 Quality management process aims to meet customer requirements and
deliver beyond expected levels of product or service.
 2. Commitment from the leadership
 The leaders at all the levels of hierarchy help to establish a unity of
purpose and direction. The leadership is responsible to create a conducive
environment so as to achieve the quality objectives of the organization.
 3. People engagement
 This principle states that all the people in the organization must be
competent, empowered and engaged in delivering value. This also
enhances the capability to create value.
 4. Process Approach
 All the activities should be managed as interrelated processes to create
consistent and predictable results. These interrelated activities function as
a coherent system.
 5. Continuous improvements
 An ongoing focus on improvement is a fundamental principle for the
success of an organization.
 6. Evidence-based decision making
 The decisions are based on the insights gained from analyzing and
evaluating data. This will help to produce desired results.
 7. Relationship Management
 Organizations should manage their relationships with interested parties
such as suppliers very well

The 7 basic quality tools are as follows:

1. Flow Chart
2. Histogram
3. Cause-and-Effect Diagram
4. Check Sheet
5. Scatter Diagram
6. Control Charts
7. Pareto Charts
Flow charts: Flow charts are one of the best process improvement tools you can use to
analyze a series of events. They map out these events to illustrate a complex process in order
to find any commonalities among the events. They’re also one of the most common methods
of creating a workflow diagram.

Flow charts can be used in any field to break down complex processes in a way that is easy to
understand. Then, you can go through the business processes one by one, identifying areas
for improvement.

Histogram: A histogram is a chart with different columns. These columns represent the
distribution by the mean. If the histogram is normal then the graph will have a bell-shaped

If it is abnormal, it can take different shapes based on the condition of the distribution.
Histograms are used to measure one thing against another and should always have a
minimum of two variables.

Cause-and-effect Diagram (also known as Fishbone diagram): Cause-and-effect diagrams
can be used to understand the root causes of business problems. Because businesses face
problems daily, it is necessary to understand the root of the problem so you can solve it

Check Sheet: A check sheet is a basic tool that gathers and organizes data to evaluate
quality. This can be done with an Excel spreadsheet so you can analyze the information
gathered in a graph.

Scatter Diagram: Scatter diagrams are the best way to represent the value of two different
variables. They present the relationship between the different variables and illustrate the
results on a Cartesian plane. Then further analysis can be done on the values.

Control Charts: A control chart is a good tool for monitoring performance and can be used
to monitor any process that relates to the function of an organization. These charts allow you
to identify the stability and predictability of the process and identify common causes of

Pareto Charts: Pareto charts are charts that contain bars and a line graph. The values are
shown in descending order by bars and the total is represented by the line. They can be used
to identify a set of priorities so you can determine what parameters have the biggest impact
on the specific area of concern.

Question 3 In Capacity Planning Explain Decsribe About Bottle Neck Analysis And Theory
Of Constraint

A bottleneck analysis is a detailed process where a company gathers as much information

about the manufacturing flow of a particular product or process. Specifically, data is gathered
about the step or steps in the process where work is bottlenecking.

This type of analysis can be done specifically to identify the cause of a bottleneck that is
causing problems, or to learn about processes where a bottleneck is likely to occur in the
future. No matter the reason for conducting this type of task, it will provide important
information about how things are done, and how they can be improved.

A bottleneck analysis is a detailed process where a company gathers as much information

about the manufacturing flow of a particular product or process. Specifically, data is gathered
about the step or steps in the process where work is bottlenecking.

This type of analysis can be done specifically to identify the cause of a bottleneck that is
causing problems, or to learn about processes where a bottleneck is likely to occur in the
future. No matter the reason for conducting this type of task, it will provide important
information about how things are done, and how they can be improved.

orming a bottleneck analysis can offer a company a variety of important benefits. The
obvious advantage is that it can help you to eliminate the bottleneck and get work flowing at
a more steady pace. In addition to that, however, a facility can enjoy the following

Cause of the Bottleneck - Identifying the root cause of a bottleneck is required for being
able to put in a long term fix that will keep the problem from happening again in the future.

Streamline Workflow - Once the bottleneck is addressed, work can flow through from start
to finish in at an even rate.
Eliminate Waste - Bottlenecks are often caused by unnecessary or inefficient processes,
which result in a variety of types of waste. Being aware of the waste is the first step in having
it eliminated.
Improve Knowledge - The more a company knows about a specific process, the easier it is
to make smart decisions. This can provide advantages not only when it comes to eliminating
bottlenecks, but when making process improvement decisions in general.

Theory of Constraints Definition

Theory of Constraints is a broadly applicable approach to managing business operations

within an organization. Basically, the theory of constraints is a management philosophy
designed to help organizations achieve their goals.
The idea is to identify the goals of the organization, identify the factors that hinder the
achievement of those goals, and then improve the business operations by continuously
striving to mitigate or eliminate the limiting factors.
The limiting factors are called bottlenecks or constraints. At any given time,
an organization is faced with at least one constraint that limits business operations. Typically,

as one constraint is eliminated another constraint will arise. The organization should then
focus its attention on the new constraint. And this process repeats itself continuously.
According to the theory of constraints, the best way for an organization to achieve its goals is
to reduce operating expenses, reduce inventory, and increase throughput. The theory of
constraints includes three core principles, six steps for implementation, and a five
step thinking process.
Theory of Constraints Core Principles

The theory of constraints has three principles. These three principles are: convergence,
consistency, and respect.

The convergence principle implies that a complex system is simpler to manage because an
adjustment or correction to one aspect of the system will impact the whole system. The
consistency principle implies that any internal conflict must be the result of at least one
flawed assumption. And the respect principle implies that humans are inherently good and
deserving of respect even when they make mistakes.