Do the right thing
Ensure that suppliers provide materials that come from socially responsible sources
Socially responsible sourcing of inputs
The contracting of a specific business operation to an external person or business in another country
Global Outsourcing
Just in time
Forecasting
Master Production Schedule
Materials Requirement Planning
The Materials Management Strategies
Outputs tend to be;
Homogenous or standardised
Tangible
Can be stored for later use
Outputs of a manufacturing business
Comprises machinery and equipment arranged in a sequence with components added to a good(s) as it proceeds through each step, with the process controlled by computers
Automation/
Automated Production Lines
Employees should have ongoing access to training, as well as fair pay and work conditions (above and beyond what is required by legislation).
Socially responsible business process
Adds to locally produced inventory by purchasing products from global sources in order to meet the demand for products.
A business globally sourcing of inputs/
Global sourcing of inputs
Ensures that materials are received and stored in the right quantities and at the right time so that they are available in the operations system as required.
Materials Management
Intangible
Cannot be stored
Tend to be differentiated or tailored to individual customers
Outputs of a services business
Relies on information from the CAD process, so that the products imagined can be manufactured.
Computer-Aided Manufacturing (CAM)
A systems approach where organisations go over and above their legal requirements when considering the interests of society by taking responsibility for the impact of their activities on stakeholders
Corporate Social Responsibility (CSR)
The desire to keep down the costs of production, businesses should not be tempted to use cheaper, illegal waste disposal methods.
Consideration of the amount of waste generated from processes and production of outputs
Materials planning tool that relies on data from the past and present and analysis of trends to attempt to determine future events
Forecasting
Information
Labour
Time
Inputs of a services business
Can be used to deliver consistent messages to customers and suppliers, and can also be used to gain customer feedback
A website means that a business is accessible for sales 24 hours a day, 7 days a week.
Reduces the costs of labour and of leasing or purchasing physical space
Strengths of Online Services
Make use of environmentally friendly packaging (for example, packaging could be minimised to reduce the amount of material and energy used as well as to reduce waste, and recyclable or biodegradable packaging could be used).
Socially responsible outputs
The production of a good in a country that is different to the location of the business’s headquarters.
Vs.
The practice of seeking the most cost-efficient materials and other inputs, including from countries overseas
Overseas Manufacturing Vs. Global Sourcing of Inputs.
Completed after the business understands the quantities to be produced and the time frame involved. A business produces an itemised list of all materials involved in production to meet the specified orders.
Materials Requirement Planning
Capital Equipment
Physical Resources
Raw Materials
Typical inputs of a manufacturing business
A highly specialised form of technology capable of complex tasks
Robotics
The environmental sustainability of inputs
The amount of waste generated from processes and production of outputs.
CSR Considerations
Improved quality because of access to expert knowledge and high-quality service
The business is able to focus on its core activities.
Management may have less control over the production process.
It may be difficult to maintain quality.
Strengths and Weaknesses of Global outsourcing
Improves efficiency and effectiveness.
Less of the business’s finances are tied up in stock
Reduces the risk of any waste occurring in storage
Advantages of Just in Time
Converts the inputs into a tangible product.
Vs.
Transforming resources into an intangible service.
Difference between the manufacturing process and a services process
Is used in the manufacturing sector to speed up processes and enable better utilisation of raw materials. This improves productivity and makes the operations process more cost-effective.
Technology