CAPACITY
found by SKU number, taken from stock and shipped
 is the maximum amount of work that an operation
can do over a specific of time.
3 TYPES OF CAPACITY
 Lag Strategy – It involves working your staff to its
fully potential.
 Lead Strategy – It is the most aggressive approach
because it involves an upfront investment to increase
capacity.
 Match Strategy – It takes both current demand and
future demand expectations into account.
THE ALTERNATIVE CAPACITY PLANS
 Level Capacity Plan – where capacity is kept
constant, the operation either tolerating the under use
of the capacity or its inability to serve all demand or
alternatively
 Chase Demand Plan – where capacity is frequently
adjusted in an attempt to match it to demand at any
point in time
 Managing Demand – where demand is influenced or
changed in order to bring it closer to capacity at any
point in time
INVENTORY MANAGEMENT
 is the fundamental building block to longevity,
helping businesses to minimize costs, improve cash
flow and boost profitability
PROCESS OF INVENTORY MANAGEMENT
 Goods are delivered to your facility – This is when
raw materials and subcomponents for manufacturers
or finished goods for consumers first enter your
warehouse.
 Inspect, sort and store goods – Whether you use
drop shipping, cross-docking or a different
warehouse management system, this when inventory
is reviewed, sorted and stored in their respective
stock areas.
 Monitor inventory levels – This may be through
physical inventory count; perpetual inventory
software or cycle counts and helps minimize the
chance of error.
 Stock orders are placed – Customers place orders
either on your website or in-store.
 Stock orders are approved – This is when you pass
the order to your supplier, or it may be automated
through your POS system.
 Take goods from stock – The necessary goods are
to the manufacturer or customer.
 Update inventory levels – Using a perpetual
inventory system, you can automatically update
inventory levels and share with necessary
stakeholders.
 Low stock levels trigger purchasing/reordering –
Restock inventory as needed.
INVENTORY MANAGEMENT TECHNIQUES
 Economic order quantity – is a formula for how
much inventory a company should purchase with a
set of variables like total costs of production, demand
rate and other factors
 Minimum order quantity – is the smallest amount
of inventory a retail business will purchase in order to
keep costs low
 Just-in-time inventory management – is a
technique in which companies receive inventory on
an as-needed basis instead of ordering too much and
risking dead stock.
 Safety stock inventory – is extra inventory that is
ordered and set aside in case the company doesn’t
have enough for replenishment
 FIFO and LIFO – are methods to determine the cost
of goods
 Reorder point formula – calculates the minimum
amount of stock a business should have before
reordering
 Batch tracking - is a quality control technique
wherein users can group and monitor similar goods
 Consignment inventory – If you’re thinking about
your local consignment store here, you’re exactly
right
 Perpetual inventory management – is simply
counting inventory as soon as it arrives to deliver
real-time insights
 Drop shipping – is an order fulfillment method in
which the supplier ships products directly to the
customer
 Lean Manufacturing – is a broad set of
management practices that can be applied to any
business practice
 Six Sigma – is a method that gives companies tools
to improve the performance of their business
 Lean Six Sigma – enhances the tools of Six Sigma,
but instead focuses more on increasing word
standardization and the flow of business
 Demand forecasting – is based on historical sales
data to forecast customer demand
  Cross-docking – is a technique whereby a supplier
truck unloads materials directly into outbound trucks
to create a JIT shipping process
 Bulk shipments - is a cost-efficient method of
shipping in which a business palletizes
inventory to ship more at once
LEAN PRODUCTION
 is a way of organizing work that focuses on getting
the job done as efficiently as possible, without
wasting time or resources
JUST IN TIME
 It is an inventory management method in which
goods are received from suppliers only as they are
needed.
SUPPLY CHAIN MANAGEMENT
 It is the handling of the entire production flow of
goods or service, starting from the raw components
all the way to delivering the final product to the
customer
PRINCIPLES OF LEAN PRODUCTION
 Value
 Value stream
 Flow
 Pull
 Perfection
PROJECT PLANNING
PLANNING STAGE
 Is the initial phase of a project where objectives,
scope, and strategies are defined.
SUPPLIER MANAGEMENT
 Project - are the specific and measurable goals that
the project aims to achieve
 Scope - involves outlining what's included and
excluded in the project
 Stakeholder Analysis - identifies and analyzes the
individuals or groups with an interest in the project
 Work Breakdown Structure - is a hierarchical
breakdown of the project's tasks and activities into
smaller, manageable components
 Risk Assessment- involves identifying potential risks
or uncertainties that could affect the project
SERVICE DELIVERY RESPONSIBILITIES
 Project Charter - formally authorizes the project
and provides a high-level view of its goals and
objectives
 Project Management Plan - outlines how the
project will be executed, monitored, and controlled
 Change Control - manages changes to the project
scope, schedule, or budget
 Communication Management - establishes clear
protocols for information sharing among team
members and stakeholders
 Stakeholder Engagement - focuses on building
positive relationships with project stakeholders
TIME MANAGEMENT
 Project Schedule - lays out the timeline for all
project activities
 Gantt Charts - are visual representations of the
project schedule
 Critical Path Analysis - analysis identifies the
sequence of tasks that, if delayed
 Resource Allocation - involves assigning people,
budget, and materials to tasks
 Time Tracking Tools - tools like project
management software or time tracking apps help in
monitoring task progress\
PROJECT SCOPE MANAGEMENT
 involves defining and controlling what is and is not
included in a project
PROCESS OF SCOPE MANAGEMENT
 Initiation - defining the project at a broad level.
 Planning - developing a detailed project scope
statement, WBS and scope baseline.
 Execution - carrying out the work defined in the
project scope statement.
 Monitoring and controlling - ensuring that project
objectives are met, and changes are managed
appropriately.
BEST PRACTICES FOR EFFECTIVE SCOPE
MANAGEMENT
 Clear documentation - thoroughly define and
document the project scope.
 Stakeholder involvement - involve stakeholders in
scope definition and validation.
  Change control process - implement a formalized
process to handle scope changes.
 Regular reviews - periodically review and validate
the project scope with stakeholders.

PROJECT QUALITY MANAGEMENT

 Is the process of continually measuring the quality of

all activities and taking corrective action until the
team achieves the desired quality

KEY COMPONENTS OF PROJECT QUALITY

MANAGEMENT

 Quality planning - developing a quality

management plan.
 Quality assurance - ensuring project processes
complete with standards.
 Quality control - monitoring and verifying project
deliverables.