BUSI 2701 Chapter Notes - Chapter 15: Total Quality Management, Iso 9000, Job Scheduler
20 Apr 2016
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Many companies as per trend have to choose between making lcd tv"s in house or outsourcing. Companies w/ tightly integrated vertical supply chains choose to make (samsung/lg) b/c more efficient and then offer their facilities to other brands. Outsourcing allows companies to just focus on innovation but sharing tech. Production and logistics preformed internationally for 2 objectives: Lower costs by dispersing production to wherever it can be performed efficiently. Increase product quality, by eliminating defective products from the supply chain and manufacturing process: less waste, less warranty costs etc. Materials management: activity that consists the transmission of physical materials through the value chain, from procurement through production and into distribution. Logistics: the procurement and physical transmission of materials through the supply chain from suppliers customers. Improving quality control reduces cost in 3 ways: minimize costs & maximize quality. Increasing productivity b/c time is not wasted manufacturing poor-quality products that can"t be sold, lowers unit cost.
