What is it? QRM makes companies more efficient and hence profitable by making them respond to a consumer demand (flow production) rather than planning for an expected demand which may or may not happen (batch production). It involves TQM & JIT, but it aims at increasing overall flexibility and responsiveness of the company. It is a pull process because the raw materials arepulled through the production process according to market demands.
Advantages: Less money is needed to run the factory because fewer raw materials and finished goods are stocked.
- The company is in a better position to increase market share as quicker response times may attract new clients.
- There is an increased turnover of stock as production systems are triggered by demand .
- Smaller batches are often produced resulting in lower storage costs
- The cost of producing quality products is reduced by minimising waste and by giving more responsibility to production teams .
Disadvantages:There is an increased reliance on suppliers to react to demand and quickly accommodate production schedules .
- Poor supply could result in a manufacturer’s inability to meet customer requirements .
- Huge variations in demand can be a problem if manufacturers can't react to the high production volume efficiently .
- Managing the change required can be difficult as QRM changes the roles & responsibilities of employees.
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