The paper 'Strategic Cost Management, Total Quality Management" is a perfect example of management coursework. Suppliers have a very significant role to play in ensuring the success of any business. An inappropriate supply may cost the company a lot in terms of delays, supplying low-quality materials and interruption with the normal programming and scheduling of activities within the company. Much of these problems are unanticipated and thus that time taken to handle such cases may be longer than it can be imagined. In my quest for suppliers, some very vital issues have to be considered.
Bryant (2008) describes a procedure named Quality Function Deployment (QFD) that is used in the screening of suppliers. This procedure fits our objectives in that it recommends that. 1. The supplier as our strategic partner has to provide integrated circuits 2. The supplier will be a tool in implementing the company's quality management initiatives. 3. Suppliers of key components should have a high degree of accuracy with the capacity to adapt his production with fluctuations in demand at a competitive price. 4. The supplier should have an established assembling plant for the components to be supplied in order to track quality and cultivate responsibility. These steps if followed to the letter will ensure that the shortlisted suppliers of the corresponding components are achieved.
It is encouraged that more weight in screening should be apportioned as determined by the usefulness of the component Question 2 a Quality management As a company poised to take the market by storm, our product quality should always and all times stand for our commitment to improving the way we do business today. It, therefore, becomes paramount that in our operations we have to be strict in the way we handle quality right from the suppliers to the making of the devices themselves. Bullwhip effect/beer game According to our market research, unpredictable sharp changes in demand patterns in the consumer market will spread further up the supply chain and might mean problems to some consumers.
An overwhelming kind of demand should in no way catch us in surprise. According to the directors, they are wary of a situation that befell the Nintendo Wii company. In this case, the company was overwhelmed by the high demand for their new games that they could not satisfy the market.
In fact, the company had a back pile of orders around 6 months old at any given time. This can be attributed to poor communication between all the supply nodes. A small wave along the journey from the supply chain to the consumers may end up being a big problem that threatens the mere existence of the company. Such a scenario is caused by poor communication throughout the supply chain, poor ordering practices and insufficient reaction to backlogs in case of any. Strategic cost management Cost Management involves analyzing the costs of material components from suppliers in order to develop strategies to lower costs while improving supplier relationships.
However, as a company policy, our cost management initiatives should in no way compromise our product quality. It, therefore, becomes necessary that our choice of suppliers should not be driven by costs alone but by quality also. Cohen (2005) provides us with some leading questions to help us address the issue of costing amicably. These questions are,
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