Transcript Introduction to Operations and Supply Chain Management

Operations Management
The planning, scheduling, and control
of the activities that transform inputs
into finished goods and services
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Viewing Operations as a
Transformation Process
Transformation
Process
Manufacturing operations
Inputs
Materials
People
Equipment
Intangible needs
Information
Outputs
Service operations
Tangible goods
Fulfilled requests
Information
Satisfied Customers
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Operation’s Interfaces
Finance
Budgeting.
Analysis.
Funds.
Manufacturing MIS
Process
Infrastructure
What IT solutions
to make it all work
together?
Human
Resources
Design
Sustainability.
Quality.
Manufacturability.
Operations
Accounting
Performance measurement systems.
Planning and control.
Skills? Training?
# of Employees?
Marketing
What products?
What volumes?
Costs? Quality?
Delivery?
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Supply Chain Management
Active management of supply chain
activities and relationships to maximize
customer value and achieve a sustainable
competitive advantage
4
Material Flows
Upstream
Downstream
Second Tier
Supplier
First Tier
Supplier
Focal
Company
Alcoa
Ball Corp
Anheuser-Busch
Distributor
M&M
Retailer
Meijer
Final
customers
Transportation companies
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Important Trends
• Electronic commerce
– Reduce the costs and time associated
with supply chain relationships
• Increasing competition & globalization
– Fewer industries protected by geography
• Relationship management
– Competition between chains, not
individual firms
– Trust and coordination
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A Top-Down Model of Strategy
Goals
Mission
Statement
Marketing
Strategy
Business
Strategy
Manufacturing
Strategy
Financial
Strategy
Operations Decisions ...
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Order Winners and Qualifiers
• Winners:
Differentiators — performance not yet
duplicated by competitors
Competitive advantage — performance better
than all or most of the competitors
• Qualifiers
Minimum acceptable level of performance
With time, Winners become Qualifiers
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The Terry Hill Model
Corporate
Objectives
Growth
Survival
Profit
ROI
Other
financial
measures
Marketing
Strategy
Product markets
and segments
Range
Mix
Volumes
Standardization
vs customization
Level of innovation
Leader vs follower
Order
Winners
Price
Quality
Delivery
speed
reliability
Demand
increases
Color range
Product range
Design
Brand image
Technical
support
After-sales
support
Manufacturing Strategy
Process
Choice of alternative
processes
Trade-offs in
processes
Role of inventory
Make or buy
Capacity
size
timing
location
Infrastructure
Function support
Manufacturing
planning & control
systems
Quality assurance
and control
Manufacturing systems
engineering
Clerical procedures
Compensation
agreements
Work structuring
Organizational structure
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