Supply Chain Management in Manufacturing Process - Essay Example

This paper deals with the supply chain issues in a manufacturing process – both internally and externally.
Project layout
Time management is integral to a manufacturing process and this is reflected in the way shop level facilities are created to ensure minimum loss of time in looking for a raw material or a tool or a component or a spare part. In other words, for all in-house manufacturing and assembly operations, project layout is synonymous with supply chain management.

The layout of a manufacturing facility is a comprehensive exercise involving the movement of incoming and outgoing materials and successive stages of processing. Incoming materials may be raw materials and/or semi-finished items and outsourced components/subassemblies. Outgoing materials are usually the finished products duly packed for delivery. The manufacturing process itself generates waste and scrap which are to be collected and disposed of in a planned manner.

Depending upon the type of operation at each stage in a manufacturing process, the layout is finalized in a variety of ways like a work center or a manufacturing cell an assembly line or a continuous process, etc. The layout designer keeps in mind the flow of materials in these stages while determining the space and facilities. While a centralized purchase and stores management takes care of the timely availability of all incoming materials, sub-stores are organized at the floor level as per production plans. In a work center, these stores cater to the raw materials, tools and consumables while in the assembly line, they are used for components, subassemblies or bought-out items. Continuous processing lines also have shop-level stores for incoming materials, consumables, and essential spares. The organizational setup ensures the availability of materials in the sub-stores at the floor level as per production plans.

Outsourcing
Economic analysis is the basis for ‘make or buy decisions and invariably a substantial amount of outsourcing happens in all manufacturing processes. Suppliers are a very important part of business operations for a variety of reasons like quality, price, timely deliveries and long-term commitment. Competitive advantages accrue to both the buyer and the seller when their respective operations are integrated to achieve maximum efficiency and economy. Outsourced materials come with their own documentation regarding specifications, inspection, packing lists, guarantee/warranty conditions, etc. and such documentation is to be properly managed in order to ensure traceability in case of a problem. Long-term buyer-seller relationships for mutual benefit are considered strategic to successful supply chain management.

Conclusion
A manufacturing process involves supply chain issues related to internal and external agencies. Shop floor level stores are organized to match with the daily production plans and they stock raw materials, components, bought out items, consumables and spares. Reliable suppliers are strategic to supply chain management and long-term buyer-seller relations are to be developed to ensure economy and efficiency in operations.