Manage Innovation And Continous Improvement
1. MBO (Management by Objectives) is a method of managing that ensures that the business use out of the resources that they have in front of them.
MBO ensures the employer and employees have the solid understanding of what is required in the organization to be most effective and to ensure everyone to understand their objectives and their roles in order to archive the goals.
Moreover, managers must know the objectives in order to be in the position to review them and make the improvement to overall processes. This will keep the management on the right track as well as in the beneficial of support innovation and continuous improvement.
2. Two systems for inventory management are:
Two-bin system: is the oldest system of inventory management, each item is stored in two bins. One of the bins contains sufficient stock to meet the demand between the arrival of one order and the placement of the next order. The second bin contains sufficient supply to meet the expected demands during the purchasing lead-time, plus a safety reverse. In this system, the purchase order is issued as soon as the supply in the first bin falls to a predetermined level.
Ordering cycle system: is also known as periodic ordering. That means we have a fixed time at which reorders are made and a variable amount that can be ordered during each order period.
The advantage of this system is we will always have a specific amount of product on hand. This ensures the business doesn’t run out of product. Generally, the business has to make sure to order enough product to replenish the supplies for one period plus the lead time for the next order period in order to ensure the business has enough on hand.
3. Inventory turnover ratio is a ratio showing how many times a company's inventory is sold and replaced over a period. It’s important to continuous improvement because it helps the business to overview the bigger picture of the performance of the business. The business will have more control of their stock
MBO ensures the employer and employees have the solid understanding of what is required in the organization to be most effective and to ensure everyone to understand their objectives and their roles in order to archive the goals.
Moreover, managers must know the objectives in order to be in the position to review them and make the improvement to overall processes. This will keep the management on the right track as well as in the beneficial of support innovation and continuous improvement.
2. Two systems for inventory management are:
Two-bin system: is the oldest system of inventory management, each item is stored in two bins. One of the bins contains sufficient stock to meet the demand between the arrival of one order and the placement of the next order. The second bin contains sufficient supply to meet the expected demands during the purchasing lead-time, plus a safety reverse. In this system, the purchase order is issued as soon as the supply in the first bin falls to a predetermined level.
Ordering cycle system: is also known as periodic ordering. That means we have a fixed time at which reorders are made and a variable amount that can be ordered during each order period.
The advantage of this system is we will always have a specific amount of product on hand. This ensures the business doesn’t run out of product. Generally, the business has to make sure to order enough product to replenish the supplies for one period plus the lead time for the next order period in order to ensure the business has enough on hand.
3. Inventory turnover ratio is a ratio showing how many times a company's inventory is sold and replaced over a period. It’s important to continuous improvement because it helps the business to overview the bigger picture of the performance of the business. The business will have more control of their stock