· Responsibility for managing the supply of components and the manufacture of internal parts, to deliver quality parts on time to customers at agreed production costs, should be under the control of one person.
· This person should also own production schedules. These must be compiled at a minimum of two levels:
o the production schedule, that provides time for the supply of materials/components and
o the production plan, which is a statement of what will be made in the next production period.
· Managing the production schedule is a complex task as you have to consider original equipment, spares, arrears, supplier capacity, internal capacity and in some instances a third party logistics provider. The person responsible for controlling the production schedules must, therefore, be intelligent and knowledgeable about products and part numbers
· The master production and production schedules must take due account of the available capacity and ways of flexing it now and in the future
· The magnitude of potential schedule changes should be agreed in advance with production management and suppliers
· Information on production schedules and the latest parametric drawings must be readily available to all suppliers, preferably on-line
· The role of purchasing has two elements;
o a professional role that locates appropriate suppliers for key components and negotiates the terms and conditions of the supplier contract. This is normally performed as part of the new product introduction process.
o the procurement of items, ensuring they are delivered on time, using the agreed contractual terms.
· The procurement tasks should be the responsibility of the operations team who provide suppliers with details of quantities and delivery dates, then feedback on their performance achievements for quality, cost, and delivery