DOCSLIB.ORG

Inventory Optimization in Manufacturing Organizations Scott Iw Lliam Lemke Walden University

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Inventory Optimization in Manufacturing Organizations Scott Iw Lliam Lemke Walden University Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2015 Inventory Optimization in Manufacturing Organizations Scott iW lliam Lemke Walden University Follow this and additional works at: https://scholarworks.waldenu.edu/dissertations Part of the Business Administration, Management, and Operations Commons, Management Sciences and Quantitative Methods Commons, and the Operational Research Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact [email protected]. Walden University College of Management and Technology This is to certify that the doctoral study by Scott Lemke has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. Charlotte Carlstrom, Committee Chairperson, Doctor of Business Administration Faculty Dr. Judith Blando, Committee Member, Doctor of Business Administration Faculty Dr. Al Endres, University Reviewer, Doctor of Business Administration Faculty Chief Academic Officer Eric Riedel, Ph.D. Walden University 2015 Abstract Inventory Optimization in Manufacturing Organizations by Scott Lemke MBA, University of St. Thomas, 2002 MMSE, University of St. Thomas, 1992 BMech, University of Minnesota, 1980 BA, Hamline University, 1978 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University July 2015 Abstract Inventories totaling 1.7 trillion U.S. dollars represent an opportunity for U.S. manufacturers. This exploratory case study researched supply chain strategies used to manage inventory in manufacturing operations of a U.S. manufacturing company. A mature value chain contained within a single organization using the value chain framework was the basis for this study. Individual interviews conducted with 16 managers responsible for defining and implementing inventory control strategies, and 4 internal users provided primary information for the study. Other sources of information included a value chain map created through the observation of operations, various inventory measurements, and policies and guidelines related to managing inventory levels. An inductive content analysis employing zero-level coding of the interview transcripts identified 4 themes that describe inventory control strategies as economic order quantity, kanban, vendor managed inventory, and process integration. Physical observation of the value chain, review of supporting documents, and analysis of inventory data ensured the trustworthiness of interpreted themes. Findings identified no single inventory control strategy that fit all applications. Findings also revealed that the financial governing bodies’ measurements were not the best tools for operational managers’ improvement activities related to inventory control. Included are measures providing alternative means to gauge inventory efficiency. With the results of this study, managers may develop effective strategies to optimize inventory and improve material flow. Manufacturing managers improving material flow may promote sustainability of raw materials and business efficiencies through reduced waste, improved environmental conditions, and increased employment opportunities in associated communities. Inventory Optimization in Manufacturing Organizations by Scott Lemke MBA, University of St. Thomas, 2002 MMSE, University of St. Thomas, 1992 BMech, University of Minnesota, 1980 BA, Hamline University, 1978 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University July 2015 Dedication I dedicate this study to my spouse, Jeanne, and my daughters, Jenny, Angie, Boo, and Emma, who encouraged me to continue learning, helped Dad with new technology, and allowed quiet time for study. Acknowledgments I am extremely appreciative of my chair, Dr. Charlotte Carlstrom (Dr. C), for her continued guidance, support, and patience while I developed writing skills and her encouragement to stay continue the study. I would like to thank Dr. Judith Blando, Dr. Al Endres, and Dr. Gene Fusch for reviewing thoughts into a professional presentation. Their insights made this study possible. Thanks to my colleagues and coworkers for their support of my entire program. Table of Contents List of Tables .......................................................................................................................v Section 1: Foundation of the Study ......................................................................................1 Background of the Problem ...........................................................................................1 Problem Statement .........................................................................................................2 Purpose Statement ..........................................................................................................3 Nature of the Study ........................................................................................................4 Research Question .........................................................................................................7 Interview Questions ................................................................................................ 7 Conceptual Framework ..................................................................................................8 Definition of Terms......................................................................................................12 Assumptions, Limitations, and Delimitations ..............................................................17 Assumptions .......................................................................................................... 17 Limitations ............................................................................................................ 17 Delimitations ......................................................................................................... 19 Significance of the Study .............................................................................................20 Contribution to Business ....................................................................................... 20 Implications for Social Change ............................................................................. 22 i A Review of the Professional and Academic Literature ..............................................23 Business Case........................................................................................................ 24 Evolution of the Manufacturing Processes Affecting Inventory .......................... 36 Supply Chain Management ................................................................................... 41 Reasons for Inventory ........................................................................................... 43 Inventory Optimization Tools ............................................................................... 56 Transition and Summary ..............................................................................................82 Section 2: The Project ........................................................................................................84 Purpose Statement ........................................................................................................84 Role of the Researcher .................................................................................................85 Participants ...................................................................................................................86 Research Method and Design ......................................................................................88 Method .................................................................................................................. 88 Research Design.................................................................................................... 91 Population and Sampling .............................................................................................93 Ethical Research...........................................................................................................95 Data Collection ............................................................................................................96 Instruments ............................................................................................................ 96 ii Data Collection Technique ................................................................................... 98 Data Organization Techniques ............................................................................ 100 Data Analysis .............................................................................................................102 Reliability and Validity ..............................................................................................106 Reliability ............................................................................................................ 106 Validity ..............................................................................................................
Load more

Recommended publications
  • Code of Business Ethics
    Code of Business Ethics Code of Business Ethics 1 www.mediakind.com An overview This Code of Business Ethics (this “Code”) has been developed for the purpose of providing an overview of MediaKind’s policies and the directives guiding our relationships with each other and with our stakeholders. MediaKind Code-of-Business-Ethics_Rev B.docx 2 www.mediakind.com Contents BEING A TRUSTED PARTNER ............................................................................................................ 4 Our guiding principles .......................................................................................................................... 4 Our responsibility for compliance ........................................................................................................... 5 Reporting compliance concerns ............................................................................................................. 5 CONDUCTING BUSINESS RESPONSIBLY ........................................................................................... 6 Our obligation as responsible corporate citizens ....................................................................................... 6 Respecting human rights throughout our business operations .................................................................... 7 Health and safety ................................................................................................................................ 8 Commitment to sustainable development ..............................................................................................
    [Show full text]
  • Work System Theory: Overview of Core Concepts, Extensions, and Challenges for the Future Steven Alter University of San Francisco, [email protected]
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by University of San Francisco The University of San Francisco USF Scholarship: a digital repository @ Gleeson Library | Geschke Center Business Analytics and Information Systems School of Management February 2013 Work System Theory: Overview of Core Concepts, Extensions, and Challenges for the Future Steven Alter University of San Francisco, [email protected] Follow this and additional works at: http://repository.usfca.edu/at Part of the Business Administration, Management, and Operations Commons, Management Information Systems Commons, and the Technology and Innovation Commons Recommended Citation Alter, Steven, "Work System Theory: Overview of Core Concepts, Extensions, and Challenges for the Future" (2013). Business Analytics and Information Systems. Paper 35. http://repository.usfca.edu/at/35 This Article is brought to you for free and open access by the School of Management at USF Scholarship: a digital repository @ Gleeson Library | Geschke Center. It has been accepted for inclusion in Business Analytics and Information Systems by an authorized administrator of USF Scholarship: a digital repository @ Gleeson Library | Geschke Center. For more information, please contact [email protected]. Research Article Work System Theory: Overview of Core Concepts, Extensions, and Challenges for the Future Steven Alter University of San Francisco [email protected] Abstract This paper presents a current, accessible, and overarching view of work system theory. WST is the core of an integrated body of theory that emerged from a long-term research project to develop a systems analysis and design method for business professionals called the work system method (WSM).
    [Show full text]
  • Upcoming Accounting Changes Will Affect Your Business Operations
    Upcoming accounting changes will affect your business operations Transition needs to be on your agenda now Three new standards in Australia are having a respond to the changes effectively and tell their major impact on business operations. Complying stakeholders early about the expected impacts on with the new Leasing, Revenue, and Financial financial results – crucial to bringing them along Instruments (i.e. hedging) standards will require on the company’s performance journey. many companies to change their business strategy, remuneration structure, tax plans, internal systems To help your company transition to these and controls, and investor communications. standards, we’ve developed a three-step model Companies that act now to take advantage of for how you should respond to the accounting the implementation timetable will be able to changes (see overleaf). Have you considered? • Your stakeholders and how you will communicate the impact of the changes on your results? • Your financial results and how you will go about determining the impact of the change? • Your organisation’s control environment and whether you are equipped to implement the changes efficiently and effectively? More than accounting Strategy (e.g. real estate strategy, Internal controls treasury strategy) Will there be an impact on the end-to-end Have you reassessed your existing strategy around processes and internal controls? business development, pricing decisions and operational behaviour? Tax plans Will there be an impact on tax planning HR and remuneration structure
    [Show full text]
  • Business Studies
    1. How to use this Booklet Purpose of the study guide • This study guide is developed to assist you to respond to different kind of questions on the topics included in this booklet • It will assist you to understand relevant concepts. For this purpose, a glossary of related terminology is included. • Pay special attention to hints and tips in preparing you on how to respond to different kinds of questions • After every content topic there will be an activity , check your answers in Section 6 of the booklet • The activities are based on exam- type questions • If you get any incorrect answers, make sure you understand where you went wrong before you continue to the next section. Look out for the following icons used in the booklet: 1 2. Study and Examination Tips 2.1 Structure of the question paper SECTION A Answer all questions: Different types of short and objective questions are set using various assessment styles and covering the 40 marks entire content for the year, e.g. multiple-choice, match columns, choose the correct word in brackets, etc. 30 min (20 short questions x 2) 10 marks per broad topic SECTION B Five questions are set and learners answer three 3 x 60 = questions: 180 marks These questions are set on all the content covered during the year. Answers should be in paragraph style. 3 x 30 min = 90 min Applicable verbs, e.g. discuss, motivate, compare, differentiate, explain, etc. Case studies (scenarios) or source-based questions will be included. Focus areas: Question 2- Business Environment Question 3- Business Ventures Question 4- Business Roles Question 5- Business Operations Question 6 - Miscellaneous SECTION C FOUR questions are set covering the entire 80 marks content for the year (use scenarios): Choose any TWO of the FOUR questions.
    [Show full text]
  • Enterprise Resource Planning (ERP) System Implementation: Promise and Problems Mehmet C
    The Review of Business Information Systems Volume 7, Number 3 Enterprise Resource Planning (ERP) System Implementation: Promise and Problems Mehmet C. Kocakülâh, (E-mail: [email protected]), University of Southern Indiana Dana R. Willett, University of Southern Indiana Abstract The experiences of the two businesses presented here correlate well with the success factors iden- tified in the literature related to implementation of enterprise resource planning systems. The im- portance of successful ERP system planning and deployment becomes evident when consideration is given to the resources companies devote to these projects and the advantages promised and of- ten realized as a result of business process improvement through ERP. As enterprise resource planning continues to evolve, its importance seems likely to grow. This evolution will allow ERP to expand to serve smaller and smaller businesses and businesses with more specialized enterprise resource planning needs. To truly serve these institutions, ERP deployments must become more reliable through the further refinement of success factor analysis. 1.0 Introduction nterprise Resource Planning (ERP) systems change the way businesses do business. With promises of huge savings and competitive advantages, vendors sell at least $15 billion of ERP systems each year E with expected market growth to $50 billion in annual ERP sales in the next three years, (Bingi, 1999). More than 50% of the Fortune 500 corporations today have already implemented ERP systems, (Grove, 2000), and 70% of the Fortune 1000 firms already have or will soon have ERP systems installed, (Bingi, 1999). Further, newly developed ERP packages target small and medium-size business with assurances that these software systems will bring big-business efficiencies at reasonable rates, (SAP Solutions, 2001).
    [Show full text]
  • The Impact of Sales and Operations Planning Implementation on Supply Chain and Financial Metrics
    University of Tennessee, Knoxville TRACE: Tennessee Research and Creative Exchange Supervised Undergraduate Student Research Chancellor’s Honors Program Projects and Creative Work 12-2015 The Impact of Sales and Operations Planning Implementation on Supply Chain and Financial Metrics Matthew Nolte University of Tennessee - Knoxville, [email protected] Follow this and additional works at: https://trace.tennessee.edu/utk_chanhonoproj Part of the Operations and Supply Chain Management Commons Recommended Citation Nolte, Matthew, "The Impact of Sales and Operations Planning Implementation on Supply Chain and Financial Metrics" (2015). Chancellor’s Honors Program Projects. https://trace.tennessee.edu/utk_chanhonoproj/1904 This Dissertation/Thesis is brought to you for free and open access by the Supervised Undergraduate Student Research and Creative Work at TRACE: Tennessee Research and Creative Exchange. It has been accepted for inclusion in Chancellor’s Honors Program Projects by an authorized administrator of TRACE: Tennessee Research and Creative Exchange. For more information, please contact [email protected]. Chancellor’s Honors Program The Impact of Sales and Operations Planning Implementation on Supply Chain and Financial Metrics Author: Matthew Nolte Faculty Advisor: Dr. Mollenkopf December 2015 Table of Contents 1. Introduction to S&OP…………………………………………………..……Page 3 Scope of the Problem……………………………………….…….………….Page 4 2. Literary Review…………………………………………………..….....……Page 5 Old View………………………………………………………………..……Page 5 Modern S&OP……………………………………………………………….Page 5 Future of S&OP……………………………………………………………...Page 6 3. Methodology…………………………………………...……………….……Page 8 4. Case Analysis……………………………………...……………………..….Page 11 Company #1 – Newell-Rubbermaid…………………………………….…...Page 11 Company #2 – Heinz……………………………………………………..….Page 12 Company #3 – Weyerhaeuser……………………………….……….………Page 14 Company #4 – Whirlpool……………………………….…………………...Page 15 Cross-Case Analysis………………………………….……………………...Page 17 5. Appendix………………………………………….…………………………Page 19 6.
    [Show full text]
  • FA3095 Business Operations Administrator(PDF, 111KB)
    Office of Human Resources Business Operations Administrator - FA3095 THIS IS A PUBLIC DOCUMENT General Statement of Duties Performs full performance professional work coordinating operational and/or administrative programs or functions, acting as a liaison to facilitate communication between sections/divisions, business/community groups, and/or the public, and serving as a technical advisor. Distinguishing Characteristics This class performs full performance professional work manging operational and/or administrative programs or functions, acting as a liaison, and serving as a technical advisor to support the core goals and objectives of a department/agency. This class is distinguished from a Staff Assistant that performs administrative and technical level work assisting professional staff in the execution and application of a specific administrative function(s) to the operations of an organization. The Business Operations Administrator is also distinguished from the Administrator I class that performs a variety of specific administrative activities/projects of limited scope in a specialized, functional area which requires a thorough foundation in the principles and practices of the functional area in order to maintain and improve the efficiency and effectiveness of the function and provide supportive, interpretive, and advisory information to higher level administrators, managers, and/or other stakeholders. The Business Operations Administrator is distinguished from the Program Administrator in that a Program Administrator performs full performance professional level work implementing, administering, and developing program activities and functions and provides technical expertise to program staff, other agencies, the community, and program participants. A Program Administrator administers a program that is defined as a specialized area with specific components that include its own policies, procedures, goals, objectives, budget, and tasks that distinguish it from the main body of a department/agency.
    [Show full text]
  • Business Operations Analysis Certificate 2018–2019
    Business Operations Analysis Certificate 2018–2019 DESCRIPTION: OPPORTUNITIES FOR GRADUATES: The Business Operations Analysis Certificate is designed for students Career: or professionals pursuing additional skills and knowledge in the Completion of this certificate will enhance professionals in many operation of business enterprises. The certificate’s course work is service, manufacturing, and government environments to better focused on applying mathematical and quality concepts to business analyze detailed operations and make value added improvements. decisions and using computer analysis and presentation skills Common position titles could include operations manager, to effectively drive operations and supply chain issues. For more production coordinator/manager, quality control analyst/manager, information, see cscc.edu/business. inventory control supervisor/manager, distribution center supervisor/ manager, transportation manager, and business analyst. ADMISSION REQUIREMENTS: Students must have completed MATH 1050 with a minimum grade of Transfer: “C” or MATH1025 with a minimum grade of “C” or MATH 1099, MATH Courses in this program may be applied to the Associate Degree 1050 module or by placement equivalent. of Applied Science in Business Management at Columbus State or transferred to a four-year institution such as Franklin University, Ohio ONGOING REQUIREMENTS: University, or Ohio Dominican University. All students CERTIFICATE REQUIREMENTS (BUSINESS OPERATIONS ANALYSIS CERTIFICATE): FIRST SEMESTER Course Term Credits Milestones/Progress Check SCM 1100 Supply Chain Management Principles AU/SP/SU 3 CSCI 1101 Computer Concepts & Applications AU/SP/SU 3 • Computer Applications satisfy general education require- ments and are Transfer Assurance Guide (TAG) Courses STAT 1400 Statistical Concepts for Business AU/SP/SU 3 eligible for seamless transfer to any Ohio institution.
    [Show full text]
  • Unmasking the Link Between the Brm (Business Relationship Manager) and the Business Architect
    UNMASKING THE LINK BETWEEN THE BRM (BUSINESS RELATIONSHIP MANAGER) AND THE BUSINESS ARCHITECT The Business Architecture Summit Dr. Susan Heidorn BRMP, CBAP, PMP, CSM, HSDP Director of Business Solutions @DrSKHeidorn Watermark Learning, Inc. susanheidorn 1 SESSION OBJECTIVES After today’s session, you should be able to: 1. Define the role of a BRM. 2. Articulate the need for a BRM. 3. Articulate the skills and competencies needed for both roles. 4. Understand the differences and similarities between BRM and the Business Architect roles. 5. Articulate 5 next steps you can take to build your BRM skills or move to a BRM role. QUICK QUIZ How many of you have heard about Business Relationship Management? How many of you have BRMs in your organization? How many of you are interested in moving to a BRM position? A PRIMER ON TERMINOLOGY Business Relationship Manager (BRM): A role Business Partner: BRM’s customer Service Provider: The supply organization © 2013 BUSINESS RELATIONSHIP MANAGEMENT INSTITUTE, INC. ALL RIGHTS RESERVED OG WHAT IS BUSINESS RELATIONSHIP MANAGEMENT? Stimulates, surfaces and shapes business demand for a Provider's products and services. Ensures potential business value from those products and services is captured, optimized, and recognized. Utilizes a set of competencies that foster productive, value-producing relationships between a provider organization and business partner. © 2013 BUSINESS RELATIONSHIP MANAGEMENT INSTITUTE, INC. ALL RIGHTS RESERVED WHY BRM? There is a disconnect A need for a translator To optimize value from between Business between Business Partner Provider products, and Service Provider. and Service Provider. services, and capabilities. The Business doesn’t understand Provide advice on how to use technology in an what technology can do for them.
    [Show full text]
  • GCSE Business Studies Unit 3: Business Operations: the Role Of
    GCSE Business Studies Unit 3: Business Operations: The production process, The Role of Procurement, The concept of Quality, Good Customer Service The transformation process describes what happens inside the business. This is where value is added to inputs to create outputs The production process: Methods of production: The Role of Procurement Just In Time (JIT) Just In Case (JIC) Job: Products are supplied to meet the exact requirements of a customer. Businesses hold as little stick as Businesses hold stock just in case there possible, items are ordered just in time is a delay from suppliers or a sudden to be used unexpected increase in demand Less money tied up in stock (lower Purchasing economies of scale could be opportunity cost) gained as the business buys in larger quantities Flow: Products more continuously from one Materials can’t be damaged/stolen Stock is available for production good if stage of the production process to another while waiting to be used demand increases = SATISFY DEMAND Advantages of Flow Production Disadvantages of Flow Production Lesson space is needed to warehouse Fewer deliveries and delivery costs High volumes of output, high sales if High initial costs buying the production line the materials (reduced rent/fixed costs) demand Allows specialisation of workers RISKY: if demand is low or falls the More deliveries, higher costs, less E of S Larger factory needed for storage (therefore more efficient as workers machines may not be used and therefore and environmental impact have fewer tasks to learn/complete) the costs per unit is high. Vulnerable to supplier delays, Long Term cheap to produce = Lack of flexibility: millions of similar items production may halt reduced costs per unit as the cost is are produced spread over millions of units Specialisation can lead to boredom and Procurement: demotivated workers (High Labour Selecting suppliers.
    [Show full text]
  • Business Operations Strategy (Bos)
    BUSINESS OPERATIONS STRATEGY Kick -off Presentation OMT THE FUTURE: Agenda 2030 “entities within the United Nations development system should operate according to the principle of mutual recognition of best practices in terms of policies and procedures, with the aim of facilitating active collaboration across agencies and reducing transaction costs for Governments and collaborating agencies” GA Resolution 71/243 António Guterres - Secretary-General of the United Nations “ the roll-out of the Business Operations Strategy at the country level must be scaled up further. I encourage all United Nations country teams to ensure compliance with an improved Business Operations Strategy by 2021” MUTUAL RECOGNITION “Affirming that our respective entities meet these prerequisites and wish to advance the Business Operations Strategy and to foster in the goals pursued by the Business Innovation Group” “hereby commit to work initially to implement the principle in the following specific areas in the context of Business Operations Strategy at the country level” SG’S VISION ON BUSINESS OPERATIONS Targets Back Office Operations Common Premises Ensure all UNCTs have Location-dependent Location-independent Consolidate 50% of Business Operations services: Consolidate at the services: Explore options, UN Offices into Strategies (BOS) country level into Common including creating a network Common Premises in place by 2021 Back Offices (CBO) in all of 6-7 Global Shared Service by 2021 countries by 2022 Centres (GSSC) Enablers Operationalize Mutual Recognition of Enable culture change towards more customer entities’ business operations rules and centric relationships through measurement of regulations, and policy and processes Client Satisfaction of all business operations services BUSINESS OPERATIONS STRATEGY (BOS) A results-based framework that focuses on joint business operations with the purpose of eliminating duplication, leveraging the common bargaining power of the UN and maximizing economies of scale.
    [Show full text]
  • Decision-Making in Cooperatives with Diverse Member Interests
    =5‘--c-USDA United States Department of Agriculture Decision-Making in Rural Business- Cooperative Service Cooperatives with RBS Research Report 155 Diverse Member Interests Agricultural producers establish and support a cooperative when it provides benefits they would not obtain by individual actions. Cooperatives are distinguished from other types of organized ventures in that owners are the primary users of services, who ben- efit in proportion to use. Members of a cooperative typically have diverse economic interests. These may encompass size, type and location of farm enterprises, and length of membership. Maintaining cohesiveness for building incentives to cooperate is becoming more com- plex as more variations in production practices and technology become available, new forms of business relationships are developed, and as consumer preferences continue to become more diverse and demanding. The objectives of this research are: first, examine the role of member consensus and policy consistency in a cooperative; second, examine member consensus and policy in a strategic framework of competition, where competitors offer individualized terms to selective producers that are difficult for cooperatives to match; and third, develop a game theory analysis for situations where cooperatives need to attract large-scale pro- ducers. Keywords: cooperatives, cooperate, members, consensus, decision-making, diverse interests, conflict, strategy, strategic decisions, game theory, long-range planning. Decision-Making in Cooperatives With Diverse Member Interests Rural Business-Cooperative Service RBS Research Report 155 Bruce J. Reynolds Strategic Management and Planning - Cooperative Services April 1997 Price: Domestic $4.50; foreign $5.00 Contents Introduction ........................................................ 1 Diverse Agricultural Producers .......................................... 3 Membership Consensus in a Business ................................... 4 Consistent Policy ...................................................
    [Show full text]