ChapterIntroduction to OM 1

Operations and Supply Chain Management

Operations andSupply Chain ManagementCHASE | SHANKAR | JACOBS14e1#INTRODUCTION Chapter OneCopyright 2014 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin1#2Learning ObjectivesLO1-1: Identify the elements of operations and supply chain management.LO1-2: Know the potential career opportunities in operations and supply chain management.LO1-3: Recognize the major concepts that define the operations and supply chain management field.LO1-4: Evaluate the efficiency of a firm.Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.1#Strategy, Processes, and AnalyticsOperations and supply chain management involvesProduct designPurchasingManufacturingService operationsLogisticsDistributionSuccess depends uponStrategyProcesses to deliver products and servicesAnalytics to support the decisions needed to manage the firmCopyright 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.1#What Is Operations and Supply Chain Management?The design, operation, and improvement of the systems that create and delivery the firms primary products and services

Operations and supply chain management (OSCM) isA functional field of businessConcerned with the management of the entire production/delivery systemCopyright 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.1#5Operations and Supply Chain ProcessesCopyright 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.1#6Process Steps for Mens Nylon Supplex Parkas

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.1#7Each Section of OSCM: What Is Accomplished?

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.1#8Operations and Supply Chain Processes

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.1#9Process ActivitiesPlanning processes needed to operate an existing supply chainSourcing selection of suppliers that will deliver the goods and services needed to create the firms productMaking producing the major product or serviceDelivering logistics processes such as selecting carriers, coordinating the movement of goods and information, and collecting payments from customersReturning receiving worn-out, excess, and/or defective products back from customersCopyright 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.1#10Goods versus ServicesCopyright 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.1#11Careers in Operations and Supply Chain ManagementCopyright 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.1#12Historical Development of Operations and Supply Chain ManagementLate 1970sEarly 1980sMid 1980sEarly 1990sMid 1990sLate 1990sEarly 2000sMid 2010sManufacturing strategy developedJust-in-time (JIT) production pioneered by the JapaneseService quality and productivityTotal quality management (TQM) and Quality certification programsBusiness process reengineering (BPR)Electronic commerceBusiness analyticsService scienceSupply chain management (SCM)Six-sigma qualityCopyright 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.1#13Current Issues in OSCMCoordinating relationships between members of SC Optimizing global network of suppliers, producers, and distributorsManaging customer touch pointsRaising awareness of OSCM as a competitive weaponSustainability and triple bottom lineCopyright 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.1#14Efficiency, Effectiveness, and ValueCopyright 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.1#15Efficiency and Wall StreetComparison of firms is important to investorsFrom an operations and supply chain perspective, the relative cost of providing a good or service is closely related to earnings growthManagement efficiency ratiosLabor productivityNet income per employeeRevenue (or sales) per employeeAsset productivity

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.1#16