Transcript Global Financial Crisis

Value Chain
 Sequence of activities in a business that
transforms resources into goods and services
that customers want
 Value is added as the product progresses
through the company
 Primary value chain functions directly create
or provide good or service
 Secondary value chain functions exist to
support primary functions
Primary Functions
 Marketing – discover customer needs
 Product development – design products to
meet customer needs
 Operations (Production) – make quality
products efficiently
 Sales – convince customers to buy
 Distribution – get product to customers
 Customer relationship management –
make sure customers are satisfied
Secondary Functions
 Human resources management –
recruitment and selection, training and
development, performance appraisal and
feedback, pay and benefits, labor relations
 Accounting – 6 step accounting cycle
 Finance – raising capital to invest in assets
 Information technology (IT) – hardware and
software used to support all other primary
and secondary functions in firm
Chapter 9: Operations Management
 Build and deliver products/services in
response to customer demands at a
scheduled delivery time
 Provide an acceptable level of quality
 Produce goods/services at lowest cost
possible
Components of Operations
Management
 Facility Location
 Facility Layout
 Materials Requirement Planning
 Purchasing
 Inventory Control
 Quality Control
Changes in Operations Management
 Computers
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Computer-aided design (3D)
Computer-aided manufacturing
Computer-integrated manufacturing
 Flexible manufacturing
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Ford Plant in Brazil
 Lean Manufacturing
 Mass Customization
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Dell Factory Tour
Is Manufacturing Dead in U.S.?
 Globalization has led to outsourcing of many
manufacturing jobs
 Political ads currently running feature loss of
U.S. manufacturing jobs
 Video on Ball Metal Beverage Container
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Video link on my homepage
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