D. Select the most appropriate eight of the following KPl's (Key Performance Indicators) for your SME. Explain why they are important and suggest where the data may be sourced in SME Ltd. Demonstrate the method of calculation with sample numbers. (16 Marks) Background. You have recently taken the post of Operations Manager in a small to medium manufacturing company called SME Ltd. It is safe to assume that the types of products and processes that the company deal with have little effect on any planning decisions or comments that you make for the topic matters to be considered. The company is in the business of sub contract manufacture, mainly for three large OEMs (Original Equipment Manufacture) companies. These three large companies are involved in cost cutting initiatives that involve product outsourcing by making more and more demands on their suppliers (ie; you). The market is changing and it becomes apparent that to supply machined or assembled or coated/processed parts is no longer enough to remain successful or survive. The larger companies now wish key suppliers, like you, to quote for supply of complete services or product sub assembles. The responsibility for all planning, quality and service levels are all down to you. Larger companies almost have some continuous improvement initiative in place so, in order to talk to these important customers, smaller companies need more than a passing knowledge of these continuous improvement or cost reduction initiatives. Some of the OEMs are adopting TQM as an operating philosophy in order to compete in what is now a global marketplace. They are keen to get SME Ltd involved as an approved quality supplier and also to reduce their number of suppliers. It is clear that in order to meet with the TQM customer requirements, management at SME Ltd will have to develop new strategies for the company. This will mean change in most areas of their business. Company background in more detail The company is in the business of sub contract manufacture mainly for 3 OEMs and for a range of smaller lower volume customers. The business is run in a traditional manner, dealing with both large, medium and "one off" made to order jobbing contacts. As such, the manufacturing facility is designed to cope with this type of product mix and operates in a reasonably flexible manner. The larger companies are always introducing cost cutting initiatives and making more and more demands on their suppliers. The company has: 12 processes ( 8CNC+4 manual) 8 direct operators 2 inspectors/customer liaison 2 partners/planners/buyers/QA/payroll input 11/2 Indirect staff for Purchase Ledger, Sales Ledger, Inventory, Job Costing input from time cards and invoices. You are asked to review this company and comment, in some detail, on the applicability of a number of techniques or methodologies which have been grouped as continuous improvement or quality improvement. Enc: This and last year's associated costs Direct staff and Process costs + other data Factorv expenses: () Direct staff and process costs + data D. Select the most appropriate eight of the following KPl's (Key Performance Indicators) for your SME. Explain why they are important and suggest where the data may be sourced in SME Ltd. Demonstrate the method of calculation with sample numbers. (16 Marks) Background. You have recently taken the post of Operations Manager in a small to medium manufacturing company called SME Ltd. It is safe to assume that the types of products and processes that the company deal with have little effect on any planning decisions or comments that you make for the topic matters to be considered. The company is in the business of sub contract manufacture, mainly for three large OEMs (Original Equipment Manufacture) companies. These three large companies are involved in cost cutting initiatives that involve product outsourcing by making more and more demands on their suppliers (ie; you). The market is changing and it becomes apparent that to supply machined or assembled or coated/processed parts is no longer enough to remain successful or survive. The larger companies now wish key suppliers, like you, to quote for supply of complete services or product sub assembles. The responsibility for all planning, quality and service levels are all down to you. Larger companies almost have some continuous improvement initiative in place so, in order to talk to these important customers, smaller companies need more than a passing knowledge of these continuous improvement or cost reduction initiatives. Some of the OEMs are adopting TQM as an operating philosophy in order to compete in what is now a global marketplace. They are keen to get SME Ltd involved as an approved quality supplier and also to reduce their number of suppliers. It is clear that in order to meet with the TQM customer requirements, management at SME Ltd will have to develop new strategies for the company. This will mean change in most areas of their business. Company background in more detail The company is in the business of sub contract manufacture mainly for 3 OEMs and for a range of smaller lower volume customers. The business is run in a traditional manner, dealing with both large, medium and "one off" made to order jobbing contacts. As such, the manufacturing facility is designed to cope with this type of product mix and operates in a reasonably flexible manner. The larger companies are always introducing cost cutting initiatives and making more and more demands on their suppliers. The company has: 12 processes ( 8CNC+4 manual) 8 direct operators 2 inspectors/customer liaison 2 partners/planners/buyers/QA/payroll input 11/2 Indirect staff for Purchase Ledger, Sales Ledger, Inventory, Job Costing input from time cards and invoices. You are asked to review this company and comment, in some detail, on the applicability of a number of techniques or methodologies which have been grouped as continuous improvement or quality improvement. Enc: This and last year's associated costs Direct staff and Process costs + other data Factorv expenses: () Direct staff and process costs + data
