Supply Chain Management Workbook

Chapter 2: Manufacturing in Essence

Essentially manufacturing and, indeed, the supply chain are a flow of information and materials, illustrated in Figure 2.1. In essence the objective of manufacturing is to improve and speed up the flow of information and smooth the flow of materials.

Information flow

Planning, contorl, execution, through closed loop systems, linking with suppliers, the rest of the company and the customer

Material flow

Suppliers to customers, a pathway of business links and processes adding value


Figure 2.1: Flows of information and material

The speed of information flow can literally be at the speed of light. For example, computers, fax machines and telephones can connect information exchange 'immediately'. Where information flow is a people-managed activity the rate of flow is slowed. The rate and management of information flow becomes dependent on people intervention and individual responsibility, and may depend on a number of variables affecting its management, such as workloads, attitudes, and so on. Effective information flow is a prerequisite to effective material flow, and both need to be accurate, swift and balanced.

Effective information flow must be freely directional, travelling to where it is required and received back to wherever it is required. Messages and feedback need visible pathways so that any information flow breakages can be identified.

Material flow and flexibility are a synonymous necessity for the competitive supply chain. Fast-paced change is a way of life for business. Flexibility is the management of reacting to changes in demand by preserving the resources of time, money, materials, people, plants and...

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