[PPT]Operations and Supply Chain Managementweb.iitd.ac.in/~ravi1/US PPts/Chapter1.pptx · Web viewAuthor Putbrese, Kaylee MHE India Created Date 06/15/2014 07:47:18 Title Operations

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Operations andSupply Chain Management

CHASE | SHANKAR | JACOBS

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INTRODUCTION

Chapter OneCopyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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Learning Objectives• LO1-1: 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.

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ed.Strategy, Processes,

and Analytics• Operations and supply chain management

involves– Product design– Purchasing– Manufacturing– Service operations– Logistics– Distribution

• Success depends upon– Strategy– Processes to deliver products and services– Analytics to support the decisions needed to

manage the firm

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ed.What Is Operations and

Supply Chain Management?

• The design, operation, and improvement of the systems that create and delivery the firm’s primary products and services

• Operations and supply chain management (OSCM) is– A functional field of business– Concerned with the management of

the entire production/delivery system

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ed.Operations and Supply

Chain Processes

Operations

Manufacturing and service

processes used to

transform resources

into products

Supply Chain

Processes that move

information and material to and from

the firm

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ed.Process Steps for Men’s

Nylon Supplex Parkas

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ed.Each Section of OSCM:

What Is Accomplished?

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ed.Operations and Supply

Chain Processes

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ed.Process Activities

• Planning – processes needed to operate an existing supply chain

• Sourcing – selection of suppliers that will deliver the goods and services needed to create the firm’s product

• Making – producing the major product or service• Delivering – logistics processes such as selecting

carriers, coordinating the movement of goods and information, and collecting payments from customers

• Returning – receiving worn-out, excess, and/or defective products back from customers

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Goods versus Services

TangibleLess interaction with

customersOften homogeneous

Not perishable – can be inventoried

Pure Goods

Core Goods

IntangibleInteraction with customer

requiredInherently heterogeneousPerishable/time dependentDefined and evaluated as a

package of features

Core Services

Pure Services

Goods

Services

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ed.Careers in Operations

and Supply Chain Management

Plant manager

Hospital administrator

Branch manager

Department store

manager

Call center manager

Supply chain manager

Purchasing manager

Quality control

manager

Business process improvement

analyst

Lean improvement

managerProject

managerProduction

control analyst

Facilities manager

Chief operating

officer

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ed.Historical Development of

Operations and Supply Chain Management

Late 1970s

Early 1980s Mid 1980s

Early 1990s

Mid 1990sLate 1990s

Early 2000s

Mid 2010s

Manufacturing strategy developed

Just-in-time (JIT) production pioneered by the Japanese

Service quality and productivityTotal quality

management (TQM) and Quality certification programs Business process

reengineering (BPR)Electronic commerce

Business analytics

Service science

Supply chain management (SCM)

Six-sigma quality

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ed.Current Issues in

OSCM• Coordinating relationships

between members of SC • Optimizing global network of

suppliers, producers, and distributors

• Managing customer touch points• Raising awareness of OSCM as a

competitive weapon• Sustainability and triple bottom

line

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Efficiency, Effectiveness, and

ValueEfficiency

• Doing something at the lowest possible cost

Effectiveness

• Doing the right things to create the most value for your customer

Value

• The attractiveness of a product relative to its cost

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ed.Efficiency and Wall

Street• Comparison of firms is important to investors

– From an operations and supply chain perspective, the relative cost of providing a good or service is closely related to earnings growth

• Management efficiency ratios– Labor productivity

Net income per employee Revenue (or sales) per employee

– Asset productivity