Integration and process management of production

The process of integration that posits several steps is an essential component of business today especially for organizations looking to connect information and systems efficiently. The approach enabled automation of processes and operation phases involved in the business allowing incorporating services and systems as well as enable securing of data sharing across the numerous applications. Therefore, companies can achieve internal and external connectivity of the system enabling automation of operational, management and supporting processes. In return, the strategy gives the firm a competitive edge because less time is spent on approaches that drive the business. As such, it is imperative to understand the steps involved in the production process and inventory warehouse management.

Production Process

The first step in the production process is the identification of insufficiency in the inventory of the goods required to meet stock transport order. The process is triggered by the requirement for raw materials trigger the procurement process to acquire these materials, inadequate raw material for the manufacture of the product (Roy, 2011). The process is followed by request for and authorization of production as well as identification of whether the organization has sufficient raw materials.

The next phase entails creating planned and production orders. Planning order is made after identification of shortage of materials set to the internal procurement. These are converted to production orders that encompass manufacturing of specific quality of materials within certain timeframe (Roy, 2011). The phase is followed by procurement external procurement process, a step that involves the acquisition of these materials: the creation of requisition, developing and sending a purchase order, reception of shipment and invoice and sending payment.

After the execution of the process of procurement (stock valuation and account balances), the organization received the raw materials and production process continues. The management determines if sufficient materials have been received and if that is the case goods or component issues are identified, confirmation made for the reception of goods (Roy, 2011).  The company is likely to have sufficient issued raw materials to commence production because procurement process has just been completed. The last step involves starting the actual production of goods. In other words, the last phase entails moving to making finished goods which result in going back to fulfillment.

Inventory Warehouse Management Process

The inventory warehouse management involves three components: inbound (buy side), actual warehousing and outbound. Inventory management begins creation of stock transportation order in which client synchronize the master data such as the UOMs with the logistic service provider before the outbound, and inbound activities are outsourced (Shmula, 2010). In the inbound stage, the client communicates to the organization information related to the purchase order (PO). The firm creates the PO reference when the products arrive. In particular, the outbound entails receiving the customer’s shipment requests, analyzing the customer orders, determining the purchases, replenishment from the supplier to the warehouse, management of the records of merchandise as well as sending the advice to the client about the same. In other words, this is a step where the client parameters are defined, for instance, customer codes are created, shipping and reception, as well as warehouse controls, are analyzed for the intended person (Shmula, 2010). The information is used to differentiate between the different clients and set shipping standards for individual customers. The next step encompasses receiving the inventory and includes the following activities: inbound scheduling, yard management, receiving, verifying and sorting break bulk. The following phase entails inventory management or maintenance. It is a stage that involved cycle and order count, confirmation of the inventory status, putaway and replenishment from safety stock (Shmula, 2010). This is followed by actual shipment of the order after packing, labeling, outbound scheduling and providing proof of delivery. The company creates assign labels to make sure the products are associated with the proper customer, for example, by developing code.  Once the receipt has been completed, the company sends the confirmation to the customer which signal that the customer can carry on with supplying the invoice. Finally, the organization can perform return for the clients if the need arises. The firm notifies the customer of the need to return the goods to the particular supplier. The client then sends a request for the return of the products, and the activity is carried out based on the request and confirmation received from the customer (Kobayashi, Tamaki & Komoda, 2013). The whole process or inventory warehouse management is shown in the diagram below.

Conclusion

Indeed, integrated process management is an important tool that helps companies controls their manufacturing variables to achieve efficient production and delivery. Therefore, it has been fundamental to understand the processes involved in production and inventory warehouse management. Production involves identifying whether the company is experiencing insufficient inventory, authorization of manufacturing and determination of the sufficiency of available materials. The next step entails creating planned and manufacturing orders followed by actual production. Inventory warehouse management involves inbound, warehousing and outbound flow: procuring, receiving, and maintaining inventory as well as shipping and order management.

References

Kobayashi, T., Tamaki, M., & Komoda, N. (2013). Business process integration as a solution to the implementation of supply chain management systems. Information & Management, 40(8), 769-780.

Roy, R. K. (2011). Design of experiments using the Taguchi approach: 16 steps to product and process improvement. John Wiley & Sons.

Shmula, T. (2010). Warehouse Management Processes. Retrieved 24th June 2017 from http://www.shmula.com/warehouse-management-processes/7300/