ISO 9000

In the name of Allah, The Most Gracious and The Most Merciful ,

Today, we will be discussing about ISO 9000. What is ISO? ISO stands for International Standard Organization. The reason for having ISO is to certify a variety of organizations and business concerns. ISO 9000 is mainly focusing on the quality program of a product. There are many standards in the ISO 9000 family, including:

• ISO 9001:2008 - Sets out the requirements of a quality management system

• ISO 9000:2005 - Covers the basic concepts and language

• ISO 9004:2009 - Focuses on how to make a quality management system more efficient and effective

• ISO 19011:2011 - Sets out guidance on internal and external audits of quality management systems.

All of the ISO 9000 family list above addresses various aspects of quality management and contains some of ISO’s well known standards. Nowadays, most company require their supplier to provide a certification to prove that they have complied with all the requirement of ISO 9000. This will help to ensure that the supplier's products and services consistently meet customer’s requirements, and that quality is consistently improved.

What is ISO 9001:2008 ?

ISO 9001:2008 is sets out the criteria for a quality management system. It can be use by any company either big or small and in any field of work. Thus by having this kind of approval, customer will be more happy to have the company as a supplier. This is because they know that the supplier can always fulfill their demand with a high quality and continuously improve quality of products.

Reason for having ISO 9000?

Many company nowadays demand their supplier to have the ISO 9000 certificate. Do you know why do this thing happen? This is because :

1) Many companies offer products and services, but it is those companies who put out the best products and services efficiently that succeed. Thus ISO 9000 stands as a proof of the company have fulfill all the requirement and have a high quality products.

2)Not only do businesses recognize the importance of the ISO 9000, but also the customer realizes the importance of quality. And because the consumer is most important to a company, ISO 9000 makes the customer its focus.

Therefore, ISO 9000 is suitable for all type of company with any type of field of work. This is because, quality is important for all field of work. With a high quality product we can attract more customer. Thus, we can gain more profit for the firm.

TOTAL QUALITY MANAGEMENT AND PURCHASING

Text : Siti Aisah Binti Ehsan Helmi
Images : Google Images

In the name of Allah , The Most Gracious and The Most Merciful ,

Do you know the quality is very important to a company to maintain and expand the company's potential to generate high income.

Do you know what is quality ?

Quality is the totality of features and characteristics of a product or services that bears on is ability to satisfy stated and implied needs. Quality can give safety, security and good design.

Why quality important to firm ?

1) Improve productivity.

2) Reduce the reverse logistics.

3) Gain brand power.

4) Increase value of product

5) Lower warranty cost.

6) Satisfy customer need.

7) can increase the profit.

How to make sure the component that you purchase a good quality ?

1) Good relationship with supplier.

2) Find the best supplier.

3) Do inspection.

4) Evaluate supplier performance.

What is Total Quality Management ?

Management of entire organization so that is excel in all aspect of all product and services that are important to the customer.

There are 7 concept for effective TQM process :

1) Continuous improvement.

2) Six sigma.

3) Employee improvement.

4) Bench marking.

5) Just in time.

6) Taguchi concepts.

7) Knowledge of TQM Tool.

First, continuous improvement is never ending improvement that cover people, equipment, suppliers, material, procedures and process where the end goal is a perfection. 

Second, six sigma is a program to save time, improve quality. In a statistical sense, it described a process, product or service with an extremely high capability in targeting 99.9997 perfection. In other six sigma definition is the program design to reduce defect to have lower cost, save time and customer satisfaction.

Third, employee improvement is enlarging empower job, so that the added responsibility and authority is moved to the lowest level possible in the organization.

Forth, bench marking is selecting a demonstrated standing of performance that represent the very best performance for process or an activities.

ISO 14000

Text : Nurul Shahirah Binti Daud
Images : Google Images

In the name of Allah, The Most Gracious and The Most Merciful,

This video explains the important of ISO in everyday life. However, what we eat what we use also closely linked with this concept. Today, I want share you related with my video is ISO 14000. ISO 14000 is very important to our life allows a company to do business to comply accordance with the standards set.

                                 


                                             

WHAT IS ISO 14000?

ISO 14000 is family addresses various aspects of environmental management. This means a series of environment management standards established by the International Organization for Standardization.  This will contain five core element

1. environment management
2. auditing
3. Performance evaluation                                                         
4. Labeling
5. Environment

TYPE OF ISO 14000

1. ISO 14001:2004 

• an environment management system to enable an organization to develop and implement a policy and objective account legal requirement and other requirement to which the organization subscribes and information about significant environmental aspects.
• to ensure an company is constantly monitored

                                     

2. ISO 14004: 2004 

• provide guidance on the establishment, implementation, maintenance and improvement of environmental management systems and other systems
• it can be used by any organization
• guidelines similar to ISO 14001: 2004 but not to give interpretation needs

3. ISO 14006:2011

•    Provides guidelines to assist organizations in establishing, documenting, implementing, maintaining and continually improving their management.
• to be used by those organizations that have implemented an EMS (environment management system) but can help integrating ecodesign
• product related environment aspects that the organization can control and those it can influence

4. ISO 14064-1 : 2006

• determining principle and requirements at the organizational level for quality and reporting of greenhouse gas (GHG) terms of relief, removals and requirements like design, development,management and so on.

                                               

WHAT BENEFIT TO US?
Many benefits the company have when we use this.

1. more reliable
ISO is very important to our company. Our company meet the potential to expand to domestic and global markets

2. help reduce pollution
before we hear a lot of pollution that occur especially water pollution. When a chicken abattoir in Selangor has overturned chicken get rid of waste  activities on the river. When there iso's, we are not responsible person.

                                                    
3. Provide relationship
when we usually deal with insurance company, we can improve the organization's relationship with them.   

4. Reduce cost
Reduction of cost associated with discharges, waste handling, transport and disposal.

                                          

                                       

5. More disciplines
Greater employee involvement in business operation with a more motivated workforce. This can help a company's product may appeal to customers seeking green product and safety to use.

                         

                                         

NEGOTIATIONS

Text : Nurul Shahirah Binti Daud
Images : Google Images

In the name of ALLAH, The Most Gracious and The Most Merciful,

Do you know negotiation can give more impact to our life? And why negotiation is important to a business and you lifestyle?everyone should be a good negotiations. For example you negotiate many ideas with your friends to solve the problems about your assignment or you negotiate with your mother to purchase. For our post today, I would like to share you about negotiations.

DO YOU KNOW ABOUT NEGOTIATIONS?

Negotiations derived from Latin and in civil law "Trading on Deliberations Leading to An Agreement" also known as counteroffers means a conversation between two or more parties in a single transaction. Normally occur during trading, when the buyer wants to buy, he will discuss with the seller to get a common ground or consensus in determining the price of the item. Negotiations take place not only in business, but he also takes place during non-profit organization and a personal situation such as a wedding. Negotiations will reach an agreement if one of the parties concede and competitive.

                                       

                             

WHAT TYPE OF NEGOTIATIONS?

1. Distributive Negotiations - are in basic conflict and competition also known as principle negotiation which a parties compete for the distribute to get some amount of money. For example Malaysia compete with China. We want  purchased a bulk of glasses. So we get a discount with lower price.

WIN - LOSE NEGOTIATIONS

                                         

2. Integrative Negotiation - also known as principle negotiations in which buyer work together to achieve a satisfactory result for both. It will can help increase the total profits. For example Nescafe company from different resource deal with Milo company in which they want compete to create a new product known as Neslo Brand .

WIN - WIN NEGOTIATIONS

WHAT BENEFITS OF NEGOTIATIONS?

Many benefits you have when you deal with other person to achieve important goals. That is

1. Discount Price

    This situation occurs when we purchased a bulk quantity or we feel the price is too high. So, the buyer deals with seller to get lower price.

2. Develop relationship

  when we always deal with seller indirectly be closed. Being a good negotiator allows you to build, maintain and improve important workplace relationships

3. Goals

   Every company want to achieve goals. Being a good negotiators can help you to achieve important goals and get what you want and need for yourselves and your company.

4. Better services
Customer usually like when a company give good services. This will cause one ways to attract the customer to buy our product.

5. Improve knowledge
We always dealing with customer so that we can recognize the different kinds of people. Moreover, we can know the respond from customer about our product.

WHAT PROCEDURE YOU FOLLOW?

1. Team - select potential team if needed
2. Objectives- determine objectives, what we want achieve?
3. Preparations- ready for all the things that happen such as cost
4. Strength- must be honest
5. Plan - set the plan the agenda
6. Strategy - set your strategy based on your objectives to be achieve
7. Tactics on how to achieve the strategy
8. follow up - develop the action plan.

SUPPLY PARTNERSHIPS AND SUPPLY CHAIN POWER

Text : Siti Aisah binti Ehsan Helmi
Images : Google images

In the name of ALLAH, The Most Gracious and The Most Merciful,

For our eleven post, we would like to share about supply partnership and supply chain power.

What is supply chain partnership?

Supply chain partnership is a relationship formed between two independent entities in supply channels to achieve specific objectives and benefits, and it is these partnerships that form the essential building blocks of supply chain management. Partnership is a type of business organization in which two or more individuals pool money, skills, and other resources, and share profit and loss in accordance with terms of the partnership agreement. In absence of such agreement, a partnership is assumed to exit where the participants in an enterprise agree to share the associated risks and rewards proportionately.

The benefits of partnership ?
* The main benefit of partnership is IMPROVE QUALITY.

1) To obtain competitive advantage by good collaboration.
2) Improve communication.
3) Company stability increase.
4) Better product design.
5) Reduce time.
6) Easy to make decisions.
7) Improve reaction to the customer changes.
8) Reduce cost.
9) Reduce risk.
10) Increase profitability.
11) Increased shared technology.

Many types of relationship intensity such as Discrete arm's length transaction, Special influence transaction, Partnership 1,2,3, Joint venture and Vertical integration.

1) Discrete arm's length transaction.
  - short term relationship.
  - open to many supplier.
  - relationship incurred during transaction.

2) Special influence transaction.
  - special treat to the regular customer.
  - for example : customer A and customer B, a company B always buy things with a lot of close             company, so the company is providing more services to the company B against a company because     there is a good relationship between each other.

3) Partnership 1
  - short term relationship.
  - single scope.
  - 3-5 years.
  - handle only one task.

Partnership 2

 - multiple scope.
 - relationship between up to 10 years.
 - two different company merge and work together.
 - control not only transportation, but also control packaging, warehousing, etc.

Partnership 3
 - when a partner he had a problem he will help to solve the problem.
 - combine two company.
 - no has limit time.
 - no contract.
 - need each other.
 - independent and difficult to replace extension and themselves.

4) Joint ventures
 - collaboration to each other.
 - for example : The company has share with the other company such as Proton has a share with            Mitsubishi.

5) Vertical integration
 - whole process to be operate.
 - take over the transportation process either direct purchase or create your own.
 - for example : Either buy direct tiong nam own or manage transport tiong nam.
 - control their own.

The risk of supplier relationship :

• Loss of partnership control.
• Unlimited liability.
• Lack of harmony.
• Disagreement.
• Partnership may actually open the weaker party up to negative.
• Heavy reliance on one partner can be disastrous if the partner does not meet expectations.

E-PROCUMENTS

Text : Nurul Shahirah Binti Daud
Images : Google Images


In the name of Allah, The Most Gracious and The Most Merciful,

Technology development increasingly impressive suitable to our lifestyle more busy with any activities. We more prefer to choose or buy goods using online transaction better than going to supermarket or store. The most popular online transaction is Alibaba.com, eBay, Zalora, mudah.com and so on. Today I want to share you about E-procuments.

ONLINE TRANSACTION

 WHAT IS E-PROCREMENT?

E-Procurement stands for electronic procurement known as a process of buying and selling of product and services using electronic system such as internet and other company network either business-to-business or business-to-consumer or business-to-goverment. It is common use for orders, invoices and payments between buyer and seller. 

                                        

WHAT TYPE OF E-PROCUREMENT?

E-Procurement have two broad categories such as direct and indirect materials. Direct materials related to the production of the finished goods. To be purchased in quantity based on complicated product planning and control systems. Then, indirect materials related any services not directly involved in the production of finished good. Indirect materials have two categories. For example operating resources managements (MRO) where use for purchasing office equipment, furniture, computer and so on then maintenance repair and operations (MRO) where use for purchasing is concerned with critical maintenance and replacements parts and manufacturing equipment. 

WHAT BENEFIT WHEN WE USE E-PROCUREMENT?

1. Comunications

we can easier to us to find very details information. We want also communicate with supplier to order what we want for easy fully our demand. For supplier, we used for e-procument to collect any feedback from customer after we use the product. It will help to improve quality product and systems.

                                  

2. Savings Cost

No need to waste time and money queuing to buy at shop or supermarket.We continue to order from suppliers what we want to satisfaction.

SAVING MONEY

                                       

3. More Efficient

when we allow integration of supply chains and provide better organization and tracking of transaction records for easier data acquisition.

4. Reduce Lead Time

 When customer order, we continued to send the product as soon as possible. Without customer wait how long the product will be finished.

MORE TIME

                                              

5. Vary Selection
if we go to the shop, we just to choose what product are sold but in online transaction, we can see more product in short time  no geographical barriers as we can access at any store easily. Online shop usually offer a variety of colour and size for choice.

                                

6. Easy payments
Nowadays we don't need go to ATM machines to cash out the amount of money needed to pay for any purchased. Many website that you have to prepare payments services like e-commerce for easy customer to pay. Customer can pay that payments to internet banking with Mastercard and Visa Card, transfering for Bank or cash on delivery.

                           

7. Share idea
using the medium of internet (on line) as a 'shopping mall' is the current trend nowadays that can make a difference to us and the people around me. In this way, we can exchange ideas about the products we want. We can also ask customers who have bought the respond after use so that we do not make mistakes.

                                            


But sometimes purchasing using online transaction can give negative impacts to our life. I will share some disadvantages of E-Procurement.

1. Fraud
Not all websites can be trusted to do the purchase transaction. We must be careful as meaningful when looking to purchase goods or services while giving us information. This is because when the internet is at your fingertips everything is easily available especially Facebook. In this situation when we already pay bank in but we not yet receive the goods.



                           

2. Sizes
in this situation usually occur when we purchase t-shirt using online transaction. When we purchase by shop we must try to wear suitable or not but transaction we do not give back to the supplier.

3. Product damage
we already know when we use online transaction we must accept anything happen in you order especially when we purchase expensive product especially vase.

4. No warranty
Some purchase no receipts or proof of purchase will cause a user can not perform reclaimed when damage is occur

SUPPLIER SELECTION AND EVALUATION

SUPPLIER SELECTION AND EVALUATION

Text : Siti Aisah binti Ehsan Helmi and
          Nurul Shahirah binti Daud

Images : Google images

In today's competitive environment, progressive firms must be able to produce quality products at reasonable prices. Product quality is a direct result of the production workforce and the suppliers. Besides that, buying firms select suppliers based on their capabilities, and not purely on the competitive process.

What reasons for make and buy ?

Reason for make:

1. Lower production cost
2. Unsuitable supplier
3. Maintain core competence
4. Increase or maintain size of company
5. Obtain desire quality
6. Assure adequate supply
7. Remove collusion

Reason for buy:

1. Lower acquisition cost
2. Inadequate facilities
3. Reciprocity
4. Save time
5. Quantity discount
6. Lower labor cost
7. Inadequate managerial or technical resources

What is outsourcing?

Outsourcing is the complete transfer of a business process that has been traditionally operated and managed internally to an independently owned external service provider.

As a retailer, the quality of your logistics-everything from transportation and warehousing to delivery and installation-plays a vital role in the success of your company. A smooth running logistics operation leads to better customer satisfaction, lower costs and overall higher profitability- among other benefits.Because it's such a vital of your business, it's sometimes hard to consider outsourcing as an option.

Benefits of Outsourcing

• Cost minimization - accomplished by reducing direct operating costs, eliminating overhead costs, and transforming fixed cost into variable cost.
• Refocusing the organization to its core competencies- focuses of what the organization does best and/ or transforming the business to focus on new products and services.
• Improvement in operating performance- accomplished by increasing quality, increasing productivity and obtaining new capabilities technologies from external sources.
• Increase market share and revenue- accomplished by accessing the providers network and accelerating expansion into new market.

Supplier Relationship Management ( SRM )

1. Supply chain management process is based on the idea of efficient resource coordination and teamwork.
2. Buyer and supplier relationships have become increasingly important for a number of reasons.
3. Buying firms experience a great deal of pressure from customers and competitors to keep their edge and stay in business by reducing costs, improving product, improving service quality and enacting continuous improvement.
4. Customers need to know their suppliers to make sure that their demand can be provided/process.
5. In getting know the supplier, customer can find their supplier from SRM.

Four Pure Supply Management Relationships

• Divided into four behavioral dimensions : counterproductive ( lose-lose), competitive ( win-lose), cooperative (win-win), collaborative (win-win) relationships.

1. Counterproductive relationships : (selfish person)

     - focused on getting what is best for it that each puts the other at the disadvantages

     - this type of relationship is undesirable because it does not promote a positive rapport between buying             and supplying firms involved and neither organization achieves its goals

2.  Transactional or competitive relationships: ( big company take advantage)

     - both buying and supplying firms strive to get the very best arrangement possible in their negotiation.

  - fail to see the benefits a both organizations obtaining their goals and objectives.
  - both of buying and supplying firms will stop at nothing to make sure that their come out on top and do          not care about the other organization's well-being.

3. Cooperative relationships : ( benefits of both parties )

     - recognize the potential value of both organizations getting what they want and maximize the potential of           having a long - term relationships.

     - commonly found within a buying organization's preferred/tier- two service providers and suppliers list.

4. Collaborative relationships : ( benefit to both parties )

     - two organizations truly realize the benefits of working together to optimize outcomes for both                        organizations.

     - two firms will work together to develop a strategy to deliver a high - quality product or service on time           and under budget.