In: Other Topics

Submitted By pinky50
Words 571
Pages 3

These can be considered as overall L process and required to facilitate the Flow of goods “POINT OF ORIGIN TO POINT OF CONSUMPTION”

1. Customer Service 2. Demand Fcstg 3. Distrbn Communications
4. Inventory Control 5. MH 6. Order Processing 7. Parts & Service Support 8. Plants & Warehouse selection 9. Procruement 10. Packaging 11. Return Goods Handling 12. Salvage & Scrap Disposal
13. Traffic & Transportation 14. Warehouse & Storage.

Primary activities –
Major costs – either contribute to TC or are essential for effective coordination.

1. Customer Service

Output of L system – time and place utility – value of products only when they are in the hands of customer – supports customer satisfaction.

2. Demand Forecasting

Complex issue – many interactions among functions and forecast variables. (Pre & Post Needs) – link to marketing, mfg, fcstg & planning.

3. Order Processing – Cycle – Key area
Customer – Status of stock – communication – credit – R & Payables -

4. Transportation - (adds place utility to a product) – when needed
Pt of origin to Pt of consumption –
Selection of mode – rail, sea, air, road (truck), waterways, pipeline, surface
Routing selection – N W E S – circular – quickest
Regulations – compliance
Largest single cost element

5. Warehousing – Own, Shared, Rented (costs differ) supports time & place utility – big cost
Activities relate to Automation – training – layout – related issues

Materials Handling – non-value adding activity – yet incurs costs
Movement of RM,WIP, FG within Operations
Eliminate – minimize – minimum travel distance – speedier processes
Reduce – eliminate costs of mishandling, loss thru pilferage / damage


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