Normally, this department employs vendor management system in order to maximize its value to the firm by dealing and controlling with suppliers. Just-in-time management system is also utilized in-order to manage inventory and minimize costs.
The transformation process is the process of converting input materials into finish products and services needed by the customers. It has several subsystems that work hand-in-hand, with overlapping functions and continuous roles. These subsystems are planning, sourcing, manufacturing and logistics.
The transformation process involves different systems in manufacturing. The component systems include sourcing, planning, manufacturing and logistics. The planning and development of products is an essential element for transformation. The inputs for planning include customer requirements and technical information. The information is converted through production planning and schedules using a material resource planning system. The outputs of the department are efficient use of resources, finished product and safer work environment.
The manufacturing process is the core process of transformation. The inputs of manufacturing include the raw materials, people, equipments and energy. These inputs are utilized in producing goods, operating the plant and processing materials. The outputs of manufacturing are the finished goods, final assembly or end product that meets the objectives of department and the requirements of the customers. Just-in-time system, lean manufacturing system and flexible manufacturing systems are employed in modern manufacturing firms in order to be effective, efficient and responsive to the demands of the markets.
Logistics is a system of warehousing and distribution of finish products intended for the customers. The inputs of logistics are the finish products that are packed and ready for the customers. The transformation process includes the management of the distribution system and allocation of shipment activities. The output is the finished products delivered to the customers, on-time and as required.
Total quality management is system of measurements, analysis and improvements. Quality management system is important for the continual improvement of business processes employed in the organization. The system converts information gathered during every processes of manufacturing into analysis and recommendations that are necessary for improvements. Quality management systems may include six sigma practices, business process re-engineering, kaizen and ISO quality systems.
Management involves planning, leading, organizing and controlling the whole organization and all the business processes of the firm. The inputs of management include the reports and analysis that are produced in the total quality management system. It is the responsibility of management to utilize the reports and analysis in order to allocate resources, create business strategies and forecast market demands in order for the organization to generate competitive advantage as well as sustain the existence of the business. Corporate and business strategies are the outputs of management.
Marketing is another output of management that is focused on the acquisition of new customers and maintenance of existing ones. The inputs of marketing are the