Controlling Physical Resources (ILM Super Series)


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Why Shop at SapnaOnline. Create New Account. My Order History. My Wishlist. All Rights Reserved. Alternatively, the AGV may be free-ranging, and kept under control via a computer that sends radio signals. Robots such as AGVs hold several advantages where the initial expense can be justified. Work is generally done more consistently, and faster, than by humans. Their ability to operate with precision usually results in fewer incidents of damage.

These consist of a series of dark bars, separated by spaces, as shown in this example. Bar coding is also employed in many industrial applications, for item identification. There are several types of coding in use. An RF system uses portable terminals that have a built in bar code scanner, a small screen and a keyboard.

These are either carried by staff or mounted on vehicles or robots. They are connected via a radio link to the main computer system, including the accounting system and any production systems. A fully-fledged warehouse management system has many advantages. Although it will be expensive to install it can offer considerable savings. It is much easier and quicker to locate any item held in the warehouse.

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Stock levels are updated instantly and perfectly accurately. Orders for new stocks will be placed automatically when needed. Write an explanation in your own words in the boxes on the left. Why do the purchasing and accounts departments need a copy?

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One simple example is the two-bin system. A usage value is calculated for each item, which is the purchase price times the number issued or sold; the highest usage value items then receive the greatest amount of attention. For issuing of stocks, the corresponding documents are the customer order or materials requisition, and the returns to supplier note. We look at some uses of technology that are commonly used to assist the purchasing function: Electronic Date Interchange EDI , e-procurement and business exchanges. Our brief review of this subject is intended to help you apply the principles of good security.

Although these four topics may seem to be unrelated, our discussions of them should help us to tie together some of the themes covered earlier in this workbook. Deliveries Suppliers Delivery records Purchase orders Issues Stock Issue records Users Forecast of requirements Analysis of requirements Purchase orders are sent to suppliers as a result of an analysis of requirements.

The existing level may be determined by visually inspecting the stock, but is more often calculated from the records of deliveries and issues. The process may continue on other days, when you discover that another shop offers lower prices and is quicker to serve you. Organizational purchasing involves the following activities. It is therefore important that the user or designer provides the purchasing officer with a specification of the goods, including perhaps dimensions, finish, colour, type and so on. The purchasing function has the task of obtaining goods and services on the most favourable terms.

Competitive tenders may be invited from contractors for larger value goods. It is a fact of life that suppliers will sometimes give false information in order to obtain a contract. Experienced purchasing personnel will be wary of promises of delivery dates by unknown or unreliable suppliers.

Its main task is to provide a service for the rest of the organization, not only in obtaining the required goods, but in giving appropriate advice and information. It is obviously in the interests of both parties to find ways around any problems that may arise, and the purchasing officer plays a crucial role in these negotiations.


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Activity 26 3 mins From the above, what would you say were the benefits to the organization of a well-managed purchasing function? Try to list at least three benefits. It is currently estimated that around , companies all over the world consisting primarily of very large public companies and their numerous trading partners conduct business using EDI.


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The list of industries in which EDI is actively used includes shipping, retail, grocery, clothing and textiles, financial, health care and many others. These transaction sets replace paper documents such as purchase orders, invoices, and so on. Standards define the structure, format, and content of EDI documents, including the data fields that may be included in a document, and the sequence and format of fields. What do you think this means and why is it a good thing?

EDI has advantages for the organization ordering goods and for the organisation supplying them. The incoming EDI order automatically updates the stock system and the accounting ledgers. But it was far too expensive.

Trading partners of large companies have faced a tough choice until recently: they could either pay the going price of EDI or lose their large company customer. It is available wherever the Internet is available. There are, nevertheless, some issues still to be addressed. In particular many companies have substantial investments in their bought-and-paid-for EDI systems and in integrating them with back-end applications. They do not want to retire their systems prematurely, nor do they wish to end up supporting two systems that essentially do the same thing.

One-off organizational purchases may be made online in exactly the same way as an individual would make them, using an organizational credit card. If online purchases are made regularly it is more likely that the organization will have an account with the supplier.

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An authorised and registered user will log in using a password and the organization will periodically be billed by the supplier. Depending on the status of the buying organization there may be discounts for volume purchasing or other special offers. This saves searching for the items required and also avoids the need to key in name, address and delivery details.

B2B offers similar advantages to EDI in terms of speed and elimination of unnecessary work. It also offers the purchasing organization much wider choice than it might have had otherwise. In theory, resources can be sourced from suppliers anywhere in the world, perhaps at much lower prices than could be obtained if the organization only considered local suppliers. Activity 28 3 mins Can you see any potential problems for an organisation that allows its purchasing department to use e-procurement?

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The main issue is control: if anyone can order goods from anywhere there is a major risk that unauthorised purchases will be made. There is also an increased likelihood that purchases will be made from suppliers who cannot deliver the required quality or cannot deliver at all! For this reason, companies such as Ariba have developed special e-procurement software with built-in tools to control who can place orders at various spending levels, who orders should be placed with and so on.

All the participants in the formation of the exchange will ask their existing suppliers to join in, thus creating the beginnings of a supplier pool. If each participant adds their own existing suppliers then all participants will immediately be able to enjoy the benefits of increased choice and competition. A notable example is Covisint, which brings together all the major motor manufacturers — Ford, General Motors, Nissan, Renault and so on.

One approach is to do without stocks altogether. They arrange for parts and materials to be delivered at exactly the time when they are needed, to be fed directly into the assembly lines. These are called just-in-time JIT systems. The whole operation has to be highly organized to keep these large-scale enterprises fully stocked and running smoothly at all times.

Perhaps the points you identified are among the following. When the suppliers themselves need time to manufacture or assemble their products, advance planning is essential. The supplier and the user also need to communicate frequently in order to adjust and confirm the precise timing and volume of deliveries. This is not possible without the aid of sophisticated technology, as the following real-life case history shows.

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There are possible variations for these components, depending on colour, engine size, extras and whether the model is left-hand or righthand drive. The component supplier has a factory just two miles away, and it makes deliveries up to 60 times a day. When the message is received by computer link, machines and operators at the supplier select, trim and fit plastic extras, before stacking them in sequence and loading them on trucks in small batches. On arrival, the driver takes the stock straight to the assembly line.

Controlling Physical Resources (ILM Super Series) Controlling Physical Resources (ILM Super Series)
Controlling Physical Resources (ILM Super Series) Controlling Physical Resources (ILM Super Series)
Controlling Physical Resources (ILM Super Series) Controlling Physical Resources (ILM Super Series)
Controlling Physical Resources (ILM Super Series) Controlling Physical Resources (ILM Super Series)
Controlling Physical Resources (ILM Super Series) Controlling Physical Resources (ILM Super Series)

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