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SMA: Q1 - Coggle Diagram

- - - - Produces small batches as needed - minimize inventory & storage costs
      - Emphasizes quality & efficiency
      - Demand pull system
    - - Minimize high costs associated with maintaining large inventories
        Produce goods only as needed - reduce storage exp - minimize waste from obsolete products
      - Streamline production process
        Shorten setup & mnfctrg cycle times - ensure efficient workflow - fast response to cust demands
    - - Enhance production efficiency, address quality issues, meet cust demands more reliably
    - - No buffer stock - Really depend on suppliers - can lead to stock outs - lead to late deliveries and unsatisfied customers - affect comp's reputation
- - - - 1) Determine target price
        (Price cust willing to pay for product)
      - 2) Establish target cost
        (Target price - desired profit margin)
      - 3) Estimate actual production cost
        If > target cost: identify and implement cost-saving measures to reduce actual cost to meet target cost
    - - Market competition
        need to determine target price that cust willing to pay w/out compromise quality - crucial to maintain & attract cust
      - Cost management
        Crucial to reduce production cost - meet target cost - implement cost saving measure (eg: optimize raw material usage)
      - Supplier collaboration
        Work closely with suppliers - negotiate better prices / find alternative materials - meet cost & quality standard
    - - Competitive pricing
        Set competitive price in market - align product cost with what cust are willing to pay - avoid price increase - retain & attract cust
      - Cost efficiency
        Reduce production cost w/out compromise quality - increased profit & better resource utilization
    - - Before production begins
        Set max product allowable cost based on desired profit margin
  - - - During production process
        Maintaining and gradually reducing current cost levels through continuous improvements
- - - - Leader in quality & innovation - emphasize continuous improvement
    - - Reach and attract a broader customer base - Eg: Use digital platform
    - - Innovative design - Ensure quality & functionality
    - - Efficient after-sales service - stronger cust satisfaction
  - - - Streamline production processes - Eg: Improve JIT system to ensure timely deliveries - Eg: Invest in modern machinery to enhance production capacity
    - - Implement proactive marketing strategies - promote - attract broader customer base - can cover initial cost of investment - Eg; Study cust needs and tailor marketing strategy