Principles of Operations Management

CASE 3
1.Describe for the president the materials management concept . What would it do for the company and what it do to the company?
2.What action steps would you follow to install the materials management concept if the president decides to adopt it?
3.Explain how sales and purchasing can help each other by establishing a good relationship.
A.) Factory Enterprises Inc ., makes automobile air conditioners for car dealer installation . The firm owns the patents and makes the product at a sizeable markup. As a result , the 20-year –old company pays its private owners very well for making good product the Materials management must good way so the company can produce quality automobile air conditioners for car dealer installation. Materials management concept is an integrative approach to control the flow of production materials This dissertation focused on the public utilities industry and its practices in the materials management area. Major emphasis of this research was to 1) define the state-of-the-art of materials management within the gas and electric utilities in Texas, 2) determine its impact on the corporate structure, and 3) identify opportunities for materials management in the future of the Texas utilities industry. The major thrust of this research was to analyze the current status of materials management utilization within the industry. This was accomplished by examining the relationships of selected demographic variables with companies` materials management posture. The materials management concept exists in varying stages of development in the gas and electric utility industry in Texas .Some firms classified as non practicing may in fact be utilizing materials management at a very early stage in development within the organization. Findings showed a trend toward the gaining acceptance of the materials management concept.
Materials management concept is refer to the management of the floe of Materials and information through the immediate supply chain. This concept originated from purchasing functions who understood the importance of integrating materials flow and its supporting functions , both throughout the business and out to immediate customers This has been defined as including purchasing , inventory management , stores management , operations planning and control and physical distribution management. The purpose of Materials management concept is to obtain efficiency of operations through the integration of all Materials, acquision , movement , and storage activities when transportation and inventory costs are aubstantial on both the input and output sides of the production process , an emphasis on Materials management may be appropriate .
The potential for compettive advantage is found via both reduced costs and improved customer service . Many manufacturing companies have moved to some form of materials management structure cost , firms constantly evaluate their means of distribution the factory enterprises makes automobile air conditioners for car dealer installation very quality one .this is the Materials management concept . Automobile is the most important means of personal transportation for many millions of people around the globe errands, to visit friends. People depend on their cars and trucks to travel to and from work, to run and relatives, and to take vacations.
This allows president becoming one cohesive, efficient team by structuring the material management into the entire process, from beginning to launch. The presidents do for company. He takes the product to market first, on time and in budget!
Then, he owns the patent and makes the product at a sizable markup. As result, the 20 years old pays its private owners very well. The president must produce material and component part. He approach that seeks efficiency of operations through the integration of all material acquisition, movement and storage activities.

At the time of its inception during the 1970s, materials management was seen as a means of reducing ‘ total costs associated with the acquisition and management of materials’. Different stages in the movement of materials through a multi-echelon system are typically buffered by inventory , as shown in fig 1.2 where materials management is not in place as an integrating concept , these different stages are often managed by different people , reporting to different senior managers within the organization. For example , a production director or vice-president will probably have responsibility for the factory , a procurement director for purchasing , with a marketing or sales director controlling the physical distribution function. These different function are managed separately, each with its own targets , each optimizing its own small part of the total materials flow system.

The results of this separate functional management of the materials flow is often high inventory levels . The lead time to move materials through the system is long because of the wasted time while materials are held in inventory . Because of the long lead time , materials have to be purchased much earlier to ensure they are available at the start of production. This makes the system inflexible to change because commitment to design and volumes is made much earlier . The whole materials movement is difficult to control it is difficult to keep track of materials because they could be in so many different places , and organizational effort is needed just to track the whereabouts of materials.
Materials management means giving responsibility for the whole materials and information flow one part of the organization . It then becomes possible to make improvements which allow the co-ordination, reduction and even removal of some intermediate inventories. This speeds up the operation . which reduces lead times which in turn means less commitment has to be made so far in advance for purchases thereby reducing the horizon for forecasting in the business . with reduced forecasting greater accuracy of schedules is possible , bringing about greater planning stability . All this leads to reduced costs , which was the original intention of the concept. This is all about Materials management concept is refer to the management of the floe of Materials and information through the immediate supply chain it will bring good benefits if Factory Enterprises Inc who makes automobile air conditioners for car dealer installation .The enterprise shows growth in overseas sales at the very time that domestic market demand is exploding . This exhausting situation calls for total effort by all company personnel : 8 managers and supervisors , 30 factory workrs , and 6 office employess.
B) The action steps would you follow to install the materials management concept if the president decides to adapt it is a distribution systems is The Action step I would follow to install the material management concept is a lean in material handling and control, from the shop floor and out into the extended supply chain, needs to be reexamined for two reasons. The Action step I would follow to install the material management concept is a lean in material handling and control, from the shop floor and out into the extended supply chain, needs to be reexamined for two reasons.

First, the majority of lean efforts to date have been based on tools and their deployment. Instead, lean should be about principles, or thinking, including the constant progress toward an image of the ideal state of the process. Many companies state this in training but in practice the focus is still on the tools. The second reason is that lean in material management has always been an extension of lean in manufacturing. Just copying or extending lean manufacturing can be a mistake. Instead, material-handling managers need to take a fresh look At what lean material management is all about action step concepts must be integratedinto any lean approach to material management.

Avoid the information blizzardAs computing power becomes a commodity and software solutions get more press coverage, the push for more " visibility" into every part of your system has grown. Phrases such as "real-time" and "unit-level data" appear more and more frequently in marketing material and magazine articles. The underlying theory: if you can get real-time information, you will be more capable of reacting to events faster and more effectively.
Reacting by another name is " firefighting." A true lean approach eliminates firefighting and instead designs systems that respond. Here's one analogy: Air traffic controllers know the speed, direction and location of every aircraft. They assess the situation constantly and tell each individual pilot when to turn, when to change elevation, and when to slow down or speed up.

Imagine that there were traffic controllers for roads who would assess the location, direction, and speed of every car and truck. They would filter what is important and tell drivers when to speed up, brake and turn. If we were writing an advertisement for this system, it might read: "Make your organization respond rapidly to changing needs in the marketplace dynamically creating an efficient and controllable supply chain."
Most material management systems are similar in nature. People, companies and machines make many independent decisions. But each needs only a few critical pieces of information to make effective decisions, for example, when the person in front of them puts on their brakes. Material managers should design systems that give people exactly what information they need to determine their next action and nothing more.
Eliminate white spaceEvery activity, whether it involves handling material or information, has both a beginning and an end. But the next person's activity often does not pick up exactly where the previous activity left off. There is white space in between. If you fill out section A of a form and send it to have section B completed, anywhere from one to 20 people may touch it in between. This is where the waste can be found. Every process in every industry has five distinct steps: queue, setup, run, wait and move. For decades we have focused a great deal on the run part of the process: running the machine, building the forecast, unloading the truck. But this is only the value-added step. It's important but it is not the most wasteful because we have focused on it for so long, and because it lends itself most naturally to improvement.

The other four steps, where we apply the least amount of attention into managing and improving, are where most of the waste lies. Consider this example, i visit Disney World and go to the Pirates of the Caribbean ride. When i get to the end of that line, i don't just hop on the boat. The operators have to get the other people off and get it ready for me setup. Then you get on and experience the ride run. When the ride is over me to wait for other people to get off before I can exit. Finally, I pull together my family and move to the next ride. Now, imagine i wanted to improve my lead-time through Disney World. Most managers and industrial engineers would focus on making the boat go twice as fast. But that's only the value added step, the run. To find real opportunity we must focus on the other areas: queue, setup, wait and move. Disney has in fact focused its operational improvements on exactly that, and visitors' value added time while going through the park has significantly increased.


Right-size everythingI hardly enter a warehouse or distribution operation without hearing someone say, "We need updated software, more space and more capable equipment." While life may be easier with all of these things, it doesn't make you any better if you improve expenses by 10 percent but add 300 percent to capital requirements. Likewise, if someone buys a piece of software and only uses half of the features, that is waste. The person who bought the software will insist that they have to use more of the features. But if those features don't add value, they shouldn't be used and more importantly, they shouldn't be bought.
We tend to start with the solution the "thing" and then go looking for a problem. Instead start with the problem the "pain". Only when you truly understand the root cause of the problem should you pull out or create the solution. Lean is about using creativity before capital. For example, one company we worked with made syringes. At one corner of the plant they made the needles. At the other end, 100 yards away, they injection molded the housings. Although they used some automated assembly equipment located near the needle manufacturing operation, a massive amount of waste was generated getting the injected molded component light but bulky to assembly.

This included boxing, packing, moving, and unpacking. Some of the parts would even become damaged during this transportation process. A team was tasked with finding a solution. Their first idea: move injection molding next to machining. This solution wouldn't get rid a lot of the problems and would have cost a fortune because of the process and documentation requirements of medical device manufacturers. Their next inspiration: install elevators and overhead conveyors. This solution was dramatically cheaper but also didn't get rid of most of the waste. Finally, on his lunch break one of the team members went to the bank and deposited his paycheck at the drive-through teller. The check got into the bank via a plastic cylinder sucked through a vacuum tube. He figured that if the bank could suck up an object as heavy as that cylinder, they should easily be able to vacuum up the light plastic components and dump them directly into the assembly equipment. That's exactly what they did at a cost of $3,100.



One inch is still transportIn the telecommunications industry tremendous bandwidth was created throughout the infrastructure except for one nagging link, "the last mile" into homes and businesses. While much of the infrastructure was there it wasn't well utilized because people could not get the data in or out very quickly. That problem has been mostly solved now, but a similar problem exists in material management.
A great deal of work has been done to move both material and information over thousands of miles, across multiple time zones and between companies smoothly and efficiently. Elegant and massive solutions have been generated, sometimes spawning entire industries. I once witnessed a fork truck driver put down a bin of parts and then watched as the operator had to move each part no less than eight times, each one less than a foot.
In the same operation the multi-million dollar ERP system prints out a pick list for the warehouse that is then re-written by hand for a more efficient pick order. There are efforts to chip away at the "last mile" problem, via technology such as radio-frequency identification (RFID), but there is no one silver bullet.
One solution, while not new or unique to lean, is auto unload, which is deployed more by successful lean companies by a factor of 10 or 20. Loading a machine of any kind requires articulation, manipulation and precision, which can be very expensive to automate. Unloading requires one thing: transport. Auto-unload relies mostly on the most efficient energy source available: gravity.
When designing a work cell industrial engineers should consider these alternatives. First, without auto-unload: Pick up part from Machine A, put it down next to Machine B, unload machine B, put down part next to machine B, pick up first part, load machine B, pick up other finished part, take to machine C. Now, with auto-unload: Pick up part from machine A, move to machine B, load part into machine B, pick up part from auto-unload tray, move to machine C. Often with little more than a kick-level, a chute and a tray, you can eliminate incredible amounts of wasteful handling.
Eliminate functional tunnel visionCurrent reality is not always what it seems. I once asked a plant management team to describe what lean means to them. The quality manager said "error proofing and first time through capability." The industrial engineering manager responded "efficient job layout and standard work instructions." The maintenance manager mentioned, "total productive maintenance" while the controller focused on cost reduction. The materials manager had an answer that was as narrowly focused: "it's about pulling material and reduction of inventory." None of these answers were wrong, they were simply incomplete.
While everyone has a role to play, we cannot approach these roles with a partial view of current reality or an incomplete view of what needs to be achieved. Don't just focus on good material management solutions, focus on the contribution material management can make towards the development of an effective and complete lean system that serves the customers with what they need when they need it without waste.
This focus is the same for all functions, the ones mentioned above along with finance, sales and marketing and product development. But for material management it takes on greater importance because it is often the hub of information through which the majority of the rest of the organization is connected. If material managers don't approach a lean transformation from a holistic perspective, then none of the managers from other functional areas will.
Remember that lean was not invented one day and is not sitting someplace waiting to be discovered. Lean is continually invented and reinvented every day. Learn from the past, apply it quickly, then learn from those new experiences to get to the next level..

Vendor evaluation the first stage, uce, coevolves finding potential vendors and determining the like hood of their becoming good suppliers. The phase requires the development of evaluation criteria. Both the criteria and the weight are dependent upon the needs of the organization.

The selection of component supplier is critical. Firm move toward fewer longer-term suppliers, the issues of financial strength, quality, management, research and technical ability play a highly important role. These attributes should be noted in calculation process.

Vendor development the second stage. Assuming a firm wants to proceed with a particular vendor, how does it integrate this supplier into its system? Purchasing makes sure and vendor has an appreciation of quality requirement policies. Purchasing policies might include issues such as percent of business done with any one supplier or with minority business.
c)
Sales and purchasing can help each other to establish a good relationship where Sales what can you say- can't live with it, can't live without it. I just joined the company as the purchasing manager so I must establishing a good relationship between sales and purchasing department In addition to their regular duties , various people purchase materials and component parts . The production manger buys finned radiators and copper tubing . The shipping supervisor buys mounting assemblies , to which workers attach all of the component parts in the final process the sales manager buys shipping cartons . Sales are where the deals are made and revenue is realized. Sales can also drive costs to a point where they cannot sell enough to make up for it.
Sales must forecast. It does not need to be 100% accurate, but the closer it is, the more efficient a company runs. Let us demonstrate the reasons why its important, how it directly affects the bottom dollar and show how it can positively impact margins, profits and future business. Unfortunately, sales can be the deal breaker instead of the dealmaker. Over the past decade, the art of effective forecasting has become almost obsolete. More and more, I hear "we can't forecast the future" and "that is an unrealistic expectation". It will help you implement the necessary tools to take forecasting to a level, which allows for deals to be completed and the company to run at its most effective rate of efficiency. We can also layout-reporting mechanisms that allow your sales team to understand and share ownership in developing a robust supply chain.
The goal in sales is the same across all industries: Provide customers or clients with goods and services, thereby earning money for the company that produces those items. What vary are the seller's product, technique, income, and title. For example, people who sell for their livelihood may go by the name of account executive, broker, and manufacturer’s rep A sales manager does very little actual selling; he or she develops and implements the training programs and incentives that motivate salespeople or reps. Also, the sales manager outlines department goals and may be responsible for designating specific territories for reps. In smaller companies, the manager creates promotional incentives such as free merchandise with a certain purchase geared toward the consumer. Resentative, and merchandiser.

When transportation and inventory. Cost s is substantial on both and the input and output side of the production process, an emphasis of material management may be appropriate the potential for competitive advantage is found customer service. Many manufacturing companies have moved two some form of material management structure.
The goal in sales is the same across all industries: Provide customers or clients with goods and services, thereby earning money for the company that produces those items. What vary are the seller's product, technique, income, and title. For example, people who sell for their livelihood may go by the name of account executive, broker, and manufacturer’s rep Purchasing management considers numerous factors, such as inventory and transportation costs, availability of supply, devery performance and quality of suppliers. A firm may have some competence in all areas of purchasing management, but exceptional competence may require a more narrow focus.

Purchasing may be combined with various warehousing inventory activities to form a material management system. The purpose of materials management is to obtain efficiency of operation through the integration of all material acquisition, movement and storage activities in the firm. One focus the of purchasing is source management is concerned with developing new reliable suppliers. The product may be a high-technology, custom-made, or specialty item for which there are few, if any, supplier. management must be able to seek out likely suppliers, develop their ability to produce and negotiate acceptable relationships. The goal in sales is the same across all industries: Provide customers or clients with goods and services, thereby earning money for the company that produces those items. What vary are the seller's product, technique, income, and title. For example, people who sell for their livelihood may go by the name of account executive, broker, and manufacturer’s rep
A sales manager does very little actual selling; he or she develops and implements the training programs and incentives that motivate salespeople or reps. Also, the sales manager outlines department goals and may be responsible for designating specific territories for reps. In smaller companies, the manager creates promotional incentives such as free merchandise with a certain purchase geared toward the consumer. Resentative, and merchandiser.When transportation and inventory. Cost s is substantial on both and the input and output side of the production process, an emphasis of material management may be appropriate the potential for competitive advantage is found customer service. Many manufacturing companies have moved two some form of material management structure.The evaluation was global and development of the supplier was expensive. A supply management focus is also necessary if the dollar value of the purchases or flutuations.in cost are substantial extreme of this focus is for the firm to pursue background integration to assure future suppliers.

A negotiation strategy is the third stage of three classic types. First is the cost-based price model. The modal requires that the supplier open its books to the purchaser. The contract price is then based on time and material or on a fixed cost with an collation clause to accommodate changes in the vendor’s labor and material cost.Second is the market-based price model. In this model, price is based on a published. Priced or index paperboard price, for instance, are published weekly in the yellow sheet and ferrous inlet wee
Supply chain management is includes determining transfers, suppliers, distributor and bank, accounts payable and receivables warehousing and inventory level, order fulfillment and sharing customer, forecasting and production information for the company.

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Case 4
1.What is accurate inventory such as important issue at service, Inc.?
2.Identify both the symptoms and problems at service , Inc.
3.What specific changes would you implement ?
a) Service , Inc is a distributor of automotive replacement parts . With no manufacturing capability , All the products it sells are purchased , assembled, and repackages. Service ,Inc does have extensive inventory and final assembly facilities. All organizations have some type of inventory planning and control system . A bank has methods to control its inventory of cash . A hospital has methods to control blood supplies and pharmaceuticals .Government agencies , schools, and , of course , virtually every manufacturing and production organization are concerned with inventory planning and control . Inventory can serve several function that add flexibility to firm’s operations . The six functions of inventory are
1. To provide a stock of goods to meet anticipated customer demand and provide a “selection” of goods.
2. To decouple suppliers from production and production from distribution . For example , If a firm’s supplies fluctuate, extra raw materials of inventory may be needed to “decouple” production rocesses from suppliers . Similarly , if product demand is high only during the summer , a firm may build up stock during the winter and thus avoid the costs of shortages and stockouts in the summer . Such a procedure “decouples” production from distribution.
3. To take advantage of quantity discounts , because purchases in larger quantities may reduce the cost of goods or delivery.
4. To hedge against inflation and upward price changes.
5. To protect against delivery variation due to weather , supplier shortages , quality problems , or improper deliveries “safety stocks” namely , extra goods on hand and reduce the risk of shortages.
6. To permit operations to continue smoothly with the use of “work in process” inventory (goods that have been moved partway through production). These inventories exist because there may be disruptions in various stages of the production process.
Accurate inventory such as important in service it because in service hey don’t manufacturing the product but purchase form any suppliers so because of this inventory very important in Service . Service , Inc is a distributor of automotive replacement parts . With no manufacturing capability , All the products it sells are purchased , assembled, and repackages. Service ,Inc does have extensive inventory and final assembly facilities so because of this it is important in service. The types of inventory is Raw material inventory, work in process inventory, maintenance/repair/operating supply (MRO) inventory , and finished goods inventory . Raw material inventory has been purchased but processed. These items can be used to decouple suppliers from the production process .However, the preferred approach is to eliminate supplier variability in quality , quantity, or delivery time so that separation is not needed. Work in process inventory are components or raw material that has undergone some change but is not completed . MRO are inventories devoted to maintenance repair/operating supplies necessary to keep machinery and processes productive . They exist because the need and timing for maintenance and repair of some equipment are unknown. Although the demand for MRO inventories is often a function of maintenance schedules , other unscheduled MRO demands must be anticipated. However , finished goods inventory is completed product awaiting shipment . Finished goods may be inventoried because future customer demands are unknown. This s types of inventory.
Good inventory policies are meaningless if management does not know inventory is on hand . Accuracy of records is a critical ingredient in production and inventory systems . Record accuracy allows organizations to focus on those items that are needed, rather than settling for being sure that “some of everything” is in inventory. Only when an organization can determine accurately what it has on hand can it make precise decisions about ordering ,scheduling, and shipping. To ensure accuracy , incoming and outgoing record keeping must be good , as must be stockroom security . A well-organized stockroom will have limited access , good house keeping , and storage areas that hold fixed amounts of inventory this is that accurate inventory important issue at service.
Management of service inventories deserves some special consideration . Although we may think of services as not having inventory, that is not the case . for instance , extensive inventory is held in wholesale and retail businesses, making inventory management crucial. In the food service business , for examples , control of inventory can make the difference between success and failure . moreover , inventory that is in transit or idle n a warehouse is lost value . Similary, inventory damaged or stolen prior to sale is a lose. Because of this accurate inventory is important in service so the company must keep all the their product in good way so easy to service to customer to distributer of automotive replacements part.
b.) Service , Inc is a distributor of automotive replacement parts and the company has been experiencing difficulties for the last 2 years first profits have fallen considerably second, customer service level have declined. Third customer returns have been rising at a rate 3?% per month this s the symptoms make the problems in Service , Inc is a distributor of automotive replacement parts and Phil Houghton, Vice president of sales , claims that most of the problem lies with the assembly department and not producing the proper mix of the product and also he believes in Service , Inc have poor quality control its productivity has fallen, and as a result, its costs are too high.
The treasurer Dick House say problems in wrong inventories and he say marketing has too many options and products he also thinks that purchasing department buyers have been hedging their inventories and requirements with excess purchasing commitments. Assembly manager Johan Burnham “the symptom is that we have a lot of parts in inventory , but no place to assemble them in the production schedule . When we have a lot of parts in inventory , but no place to assemble them in the production schedule. When we have the right part ,” he adds, “ it is not very good , but we use it anyway to meet the schedule” this is all the symptoms and problems at Service, Inc. I ma as president of service, Inc. will must get the firm back on a course toward improved profitability.
Material requirements planning a dependent demand technique that uses bill-of-material, inventory, expected, and a master production schedule to determine material requirements and benefits in MRP better response to customer orders as the result of improved adherence to schedules it faster respon to market changes and others benefits is better response to customer orders and to the market wins orders and market share . Improved utilization of facilities and labor it make better utilization of facilities and labor yields higher productivity and return on investment and inventory frees up capital and floor space for others uses. These benefits are the result of a strategic decision to use a dependent inventory scheduling system and demand for every component of an product is dependent . MRP procedure is straightforward and can be done by hand . A master production schedule , a bill of material , inventory and purchase records, and lead times for each item are the ingredients of a material, requirements planning system

c) Service, Inc manager of purchasing has taken the stance that purchasing has not let Service, Inc down . He has stuck by his old suppliers, used historical data to determine requirements, maintained what he views as excellent prices from suppliers, and evaluated new sources of supply with a view toward lowering cost, Where possible, John reacted to the increased pressure for profitability by emphasizing low cost and early delivery and because of this this Service, Inc need a lot changes in their company to make sure their success in this business. The material requirements plan is not static. And since MRP system increasingly are integrated with Just-in-time (JIT) techniques. Bills of material and material requirements plans are altered as changes in design, schedules, and production processes occur. Additionally , change occur in material requirements whenever the master production schedule is modified. Regardless of the cause of any changes , the MRP model can be manipulated to reflect them. In this manner, an up to date requirements schedule is possible.
Due to the changes that occur in MRP data , it is not uncommon to recomputed MRP requirements about once a week. conveniently a central strength of MRP is timely and accurate replanning capability. However, many firms find they do not want to respond to minor scheduling or quantity changes even if they are aware of them. Two tools that can help us reduce MRP system nervousness. That is system nervousness and can create havoc in purchasing and production departments if implemented. Consequently , OM personnel reduce such nervousness by evaluating the need and impact of changes prior to disseminating requests to other departments . Two tools are particularly helpful when trying to reduce MRP system nervousness
The first is time fences . Time fences allow a segment of the master schedule to be designated as “not to be rescheduled.” This segment of the master schedule is thus not changed during the periodic regeneration of schedules. The second tool is pegging . Pegging means tracing upward in the BOM from the component to the parent item. By pegging upward, the production planner can determine the cause for the requirement and make a judgment about the necessity for a change in the schedule. With MRP, the operations manager can react to the dynamics of the real world . How frequently the manager wishes to impose those changes on the firm requires professional judgment. Moreover, if the nervousness is caused by legitimate changes, then the proper response of operations management may be to investigate the production environment not adjust via MRP. MRP is a planning and scheduling technique with fixed lead times , while just in time (JIT) is a way to move material expeditiously. In many respects However an MRP system combined with JIT provides the best of both worlds. MRP provides a good master schedule and an accurate picture of requirements, and JIT reduces work in process inventory. The have two approaches for integrating the two systems : small buckets approach : MRP is an excellent tool for resource and scheduling management in process focused facilities, that is, in job shops. Such facilities include machine shops, hospitals, and restaurants , where lead times are relatively stable and poor balance between work centers is expected. I would implement systems in Service , Inc is a distributor of automotive replacement parts.
Balanced flow approach MRP supports the planning and scheduling necessary for repetitive operations, such as assembly line. In these environments, the planning portion of MRP is combined with JIT execution. The JIT portion uses kanbans , visual singnals, and reliable suppliers to pull the material through the facility. In these systems, execution is achieved by maintaining a carefully balanced flow of material to assembly ares with small lot sizes.
This all specific changes I would implement to make sure all problem like first profits have fallen considerably second, customer service level have declined. Third customer returns have been rising at a rate 3?% per month this s the symptoms make the problems in Service , Inc is a distributor of automotive replacement parts for this I find what the problem and use good system to make this company get it profit back and all it product sale very well and customer not give back product they will like the product .this is the specific changes I would implement to the Service , Inc is a distributor of automotive replacement parts I will specific changes and makesure the Service , Inc is a distributor of automotive replacement parts will get market share back.

INSTITUT TEKNOLOGI PERTAMA.
DIPLOMA IN BUSINESS MANAGEMENT
PRINCIPLES OF OPERATIONS
MANAGEMENT.
LECTURER NAME: MISS NG SIEW FENG
STUDENT NAME : KESAVAN GOVINDASAMY
IC NUMBER : 811106-01-6043
MATRIC NUMBER: DIBM-11/04-00022