Dagmar in marketing

It stands for Defining Advertising Goals for Measured Advertising Results. This is a concept used in advertising andmarketing planning and was developed by Russell Colley in his research papers and his book, in 1961. The main idea of the concept is that it all commercial communications that weigh on the ultimate objective of a sale must carry a prospect through four levels of understanding. The prospect here is the customer and the four levels that a prospective customer must pass through are: 1. First he must be aware of the brand or the company 2. He must have full knowledge of the companys products and in what way it may or may not affect him. 3. He should be convinced enough to either make up his mind or consider buying the product. 4. He should be stirred to action. If you observe the above four stages, it is nothing but common sense and a very practical way of making your customers buy your products with the help of right advertising. It is also similar to the AIDA (Attention, Interest, Desire and Action; more on AIDA model in one of our future posts) model of advertising. This model is oriented towards the needs of the future customers and is thus useful. It also helps in researching the advertising campaign during the various stages of its execution and what effect it is having the prospect.

But one of the biggest drawbacks of this model is that is doesnt differentiate between different types of customers. Based on which stage of the above four-stage process the customer is, his needs will be different. But this model in particular or mass media advertising in general cant take care of the needs of these customers separately.

LOGISTICS
MRP I

Introduction Success of an operation department of any organization is dependent upon an efficient production plan. One of the key essential of a production plan is material and manufacturing planning system. Material requirement planning plays a pivotal role in assembly-line production. Material requirement planning is a system based approach, which organizes all required production material. Material requirement planning is an information system for production planning based on inventory management. The basic components of material planning are:

Material planning provides information that all the required raw material and products are available for production. Material planning ensures that inventory level are maintained at its minimum levels. But also ensures that material and product are available whenever production is scheduled, therefore, helping in matching demand and supply. Material planning provides information of production planning and scheduling but also provides information around dispatch and stocking.

Objective of Material Requirement Planning Material requirement planning is processed which production planning and inventory control system, and its three objectives are as follows:

Primary objective is to ensure that material and components are available for production, and final products are ready for dispatch.

Another primary objective is not only to maintain minimum inventory but also ensure right quantity of material is available at the right time to produce right quantity of final products. Another primary objective is to ensure planning of all manufacturing processes, this scheduling of different job works as to minimize or remove any kind of idle time for machine and workers.

Advantages and Disadvantages of Material Resource Planning As with every system based process, material resource planning also has its advantages and disadvantages, and they are as follows: Advantages of Material Resource Planning

It helps in maintain minimum inventory levels. With minimum inventory levels, material planning also reduces associated costs. Material tracking becomes easy and ensures that economic order quantity is achieved for all lot orders. Material planning smoothens capacity utilization and allocates correct time to products as per demand forecast.

Disadvantages of Material Resource Planning3636936693

Material planning is highly dependent on inputs it receives from other systems or department. If input information is not correct than output for material planning will also be incorrect. Material planning requires maintenance of robust database with all information pertaining inventory records, production schedule, etc. without which output again would be incorrect.

Material planning system requires proper training for end users, as to get maximum out of the system. Material resource planning system requires substantial investment of time and capital.

Material Resource Planning Inter dependency of Business Function Material planning not only benefits operation department but is also beneficial to the other department of organization. They are as follows:

Material planning is useful in determining cash flow requirement based on material requirements and final dispatch schedules. It helps procurement team in scheduling purchase of necessary material. It helps the sales team in determining delivery dates for final products.

Implementation of Material Resource Planning Implementation and success of material resource planning dependent on following factors:

Acceptability of by top management about advantages and benefits Proper training and participation of all workers and personnel Precision and accuracy of input data for accurate and reliable results

ADVANTAGES OF MATERIALS REQUIREMENT PANNING (MRP) Helps to minimize inventory levels and the associated carrying costs

Helps to track material requirements Helps to determine the most economical lot sizes for orders Helps to compute quantities needed as safety stock Helps to allocate production time among various products, and plan for future capacity needs To maintain right balance between Demand and Supply DRAWBACKS / LIMITAIONS OF MRP

Time consuming Costly to implement Information output of MRP system is totally depends on the information input Accurate bills of materials, part numbers, and inventory records is required MRP relies upon accurate input information Not 100% accurate or perfect and can create serious problem if going to occur any error in system. It may alter all numbers and data. Inconsistent manpower also act as limitation here Serious problem may arise if small organization fails to maintain good inventory record Effective and efficient function possible only if an accurate master production schedule (MPS), good lead time, and

current inventory records maintained, otherwise it can lead to serious problem

http://www.scribd.com/doc/56808873/122/Benefits-of-MRP-

PG 65 ,66 FOR MRPI AND MRPII AND JIT

Kanban
Definition
Kanban is key for Just-In-Time production. There are three underlying principles to this: 1. Laying down the methods for and teaching production and conveyance 2. Creating a visual control tool and using it for checking over-production and detecting irregular processing speeds 3. Creating and using another tool for performing Kaizen (continuous improvement.) The word Kan means "card" in Japanese and the word "ban" means "signal". So Kanban refers to "signal cards". However, Kanban is not another name for just-in-time delivery. It is a part of a larger JIT system. There is more to managing a JIT system than just Kanban and there is more to Kanban than just inventory management. For example, Kanban also involves industrial re-engineering. This means that production areas might be changed from locating machines by function, to creating "cells" of equipment and employees. The cells allow related products to be manufactured in a continuous flow. The Japanese refer to Kanban as a simple parts-movement system that depends on cards and boxes/containers to take parts from one work station to another on a production line. The essence of the Kanban concept is that a supplier or the warehouse should only deliver components to the production line as and when they are needed, so that there is no storage in the production area. Within this system, workstations located along production lines only produce/deliver desired components when they receive a card and an empty container, indicating that more parts will be needed in production. In case of line interruptions, each work-station will only produce enough components to fill the container and then stop. In addition, Kanban limits the amount of inventory in the process by acting as an authorization to produce more inventory. Since Kanban is a chain process in which orders flow from one process to another, the production or delivery of components are pulled to the production line. In contrast to the traditional

forecast oriented method where parts are pushed to the line.

[edit]

ADVANTAGES OF THE KANBAN PROCESS

Roos notes the following advantages of Kanban over the traditional push system: 1. 2. 3. 4. 5. 6. 7. 8. 9. A simple and understandable process Provides quick and precise information Low costs associated with the transfer of information Provides quick response to changes Limit of over-capacity in processes Avoids overproduction Is minimizing waste Control can be maintained Delegates responsibility to line workers

Kanban provides a number of benefits.

Reduce inventory and product obsolescence. Since component parts are not delivered until just before they are needed, there is a reduced need for storage space. Should a product or component design be upgraded, that upgrade can be included in the final product ASAP. There is no inventory of products or components that become obsolete. This fits well with the Kaizen system on continual improvement. Product designs can be upgraded in small increments on a continual basis, and those upgrades are immediately incorporated into the product with no waste from obsolete components or parts.

Reduces waste and scrap

With Kanban, products and components are only manufactured when they are needed. This eliminates overproduction. Raw materials are not delivered until they are needed, reducing waste and cutting storage costs.

Provides flexibility in production If there is a sudden drop in demand for a product, Kanban ensures you are not stuck with excess inventory. This gives you the flexibility to rapidly respond to a changing demand. Kanban also provides flexibility in how your production lines are used. Production areas are not locked in by their supply chain. They can quickly be switched to different products as demand for various products changes. Yes, there are still limits imposed by the types of machines and equipment, and employee skills, however the supply of raw materials and components is eliminated as a bottleneck.

Increases Output

The flow of Kanban (cards, bins, pallets, etc.) will stop if there is a production problem. This makes problems visible quickly, allowing them to be corrected ASAP. Kanban reduces wait times by making supplies more accessible and breaking down administrative barriers. This results in an increase in production using the same resources.

Reduces Total Cost The Kanban system reduces your total costs by:

Preventing Over Production Developing Flexible Work Stations Reducing Waste and Scrap Minimizing Wait Times and Logistics Costs Reducing Stock Levels and Overhead Costs Saving Resources by Streamlining Production Reducing Inventory Costs

Smed
Single-Minute Exchange of Die (SMED) is one of the many lean production methods for reducing waste in a manufacturing process. It provides a rapid and efficient way of converting a manufacturing process from running the current product to running the next product. This rapid changeover is key to reducing production lot sizes and thereby improving flow. SMED (Single-Minute Exchange of Dies) is a system for dramatically reducing the time it takes to complete equipment changeovers. The essence of the SMED system is to convert as many changeover steps as possible to external (performed while the equipment is running), and to simplify and streamline the remaining steps. The name Single-Minute Exchange of Dies comes from the goal of reducing changeover times to the single digits (i.e. less than 10 minutes). A successful SMED program will have the following benefits: Lower manufacturing cost (faster changeovers mean less equipment down time) Smaller lot sizes (faster changeovers enable more frequent product changes) Improved responsiveness to customer demand (smaller lot sizes enable more flexible scheduling) Lower inventory levels (smaller lot sizes result in lower inventory levels) Smoother startups (standardized changeover processes improve

consistency and quality.

Matrix organisation
http://kalyan-city.blogspot.in/2011/05/matrix-organisation-meaning-features.html

cross docking

Introduction

The term cross docking refers to moving product from a manufacturing plant and delivers it directly to the customer with little or no material handling in between. Cross docking not only reduces material handling, but also reduces the need to store the products in the warehouse. In most cases the products sent from the manufacturing area to the loading dock has been allocated for outbound deliveries. In some instances the products will not arrive at the loading dock from the manufacturing area, but may arrive as a purchased product that is being re-sold or being delivered from another of the companies manufacturing plants for shipment from the warehouse.

The name cross docking explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock.

Benefits

Many companies have benefitted from using cross docking. Some

of the benefits include:

Reduction in labor costs, as the products no longer requires picking and putaway in the warehouse. Reduction in the time from production to the customer, which helps improve customer satisfaction. Reduction in the need for warehouse space, as there is no requirement to storage the products.

Products Suitable for Cross Docking

There are materials that are better suited to cross docking than others. The list below shows a number of types of material that are more suited to cross docking.

Perishable items that require immediate shipment High quality items that do not require quality inspections during goods receipt Products that are pre-tagged (bar coded, RFID), pre-ticketed, and ready for sale at the customer Promotional items and items that are being launched Staple retail products with a constant demand or low demand variance Pre-picked, pre-packaged customer orders from another production plant or warehouse

Service sector
Fishbone and cause and effect analysis
Introduction
Fishbone analysis also known as cause and effect analysis was created by Kaoru Ishikawa. The analysis suggests that in order to solve a problem (or effect) an organisation should try to find out the causes behind the effect. Discovering all of the causes will help an organisation solve the problem and plan how to prevent the problem from reoccurring.

Fishbone Diagram
Fishbone analysis involves drawing a diagram (showing the effect and each of its causes) in a fish skeleton shape. A cause and effect analysis is usually completed in teams, where the skeleton is completed through the team, brainstorming possible causes. The problem is written at the head of the fish skeleton and each cause is recorded next to a fishbone. Recording each cause as a bone encourages people to explore all of the causes fully and should stop them jumping to assumptions, which prevent them discovering the true (root) cause of the effect.

Grouping Causes
There could be a large list of possible causes, splitting the causes into groups may help you remember to cover all of them. The groups will depend on the industry that

the organisation is based in. For example manufacturing industries could be split as follows: Machinery Materials the firm uses Production methods Employees (Manpower) The groups are not "set in stone" each organisation should change them, to suit their organisational activities and the problem they are analysing.

Example Fishbone (Cause And Effect Analysis)

The example fishbone analysis provided below, explores a problem with a firm operating in the service industry. Service industry tasks are usually split into four groups known as the 4Ps: policies, procedures, people, and plant (technology). To fully explore the causes additional groups from the marketing mix (product, price, promotion,place) have been added.

The example diagram shows that the problem for the company is declining sales and there are a number of possible causes Inefficient processes Employee training Promotional activity budgets Uncompetitive pricing Plant location Outdated policies Time consuming procedures and Outdated Products.

Conclusion
Fishbone analysis is a good way to solve a problem especially for employees who like to visualise situations. It encourages a full analysis of the issues and discourages assumptive behaviour. However for a fishbone analysis to be a productive activity once causes have been discovered, an organisation needs to write an action plan to solve the causes and ensure that the action plan is fully completed.