What is Operations and Supply Chain Management?
Planning
-consist of the processes needed to operate an existing supply chain strategically -firms must determine anticipated demand will be met with available resources -developing a set of metrics to monitor the supply chain so that it is efficient and delivers high quality and value to customers
Returning
-involves processes for receiving worn-out, defective, and support for customers who have problems with delivered products -this may involve all types of follow-up activities required for after sales support
Sourcing
-involves the selection of suppliers that will deliver the goods and services needed to create the firm's product -set of pricing, delivery, and payment processes are needed along with metrics for monitoring and improving relationships between partners of the firm -processes include receiving shipment, verifying them, transferring them to manufacturing facilities, and authorizing supplier payments
Delivering
-referred to as logistics processes -carriers are picked to move products to warehouses and customers, coordinate and schedule the movement of goods and information through the supply network, develop and operate a network of warehouses -run the information systems that manage the receipt of orders from customers and the invoicing systems that collect payments from customers
Differences Between Services and Goods: 1st
-service is an intangible process that cannot be weighed or measured, whereas a good is a tangible output that has physical dimensions -distinction has important business implications, because a service innovation, unlike a product innovation, cannot be patented -the things produced by a service are intangible. Service processes tend to be highly variable and time dependent compared to goods-producing processes
Differences Between Services and Goods: 2nd
-service requires some degree of interaction with the customer for it to be a service -goods are generally produced in a facility separate from the customer, and can be made according to a production schedule that is efficient for the company
Differences Between Services and Goods: 4th
-services as a process are perishable and time dependent -goods can be stored
Differences Between Services and Goods: 3rd
-services with exception of information technologies are inherently heterogeneous and vary from day to day even hour to hour as function of the attitudes of customers and servers -goods can be produced to meet very tight specifications day-in and day-out with essentially zero variability
Making
-where the major product is produced or the service provided -the step requires scheduling processes for workers and the coordination of material and other critical resources such as equipment to support producing or providing the service -metrics that measure speed, quality, and worker productivity are used to monitor these processes
Services Business can be categorized as four main types:
1. Business that impact human bodies (salon, fitness centers, clinics) 2. Business that are directed at physical products(freight transportation, laundry, landscaping) 3. Business that are directed at people's mind (advertising, education, and entertainment) 4. Business directed at risk and money management (banks, legal services, insurance)
Current Issues in Operations and Supply Chain Management
1. Uncertainty in global tariffs and regulations 2. Difficulty in hiring and keeping employees 3. Adapting to change in business technology and infrastructure
Differences Between Services and Goods: 5th
Services are defined and evaluated as a Package of features: -supporting facility (location, decoration, layout, architectural, appropriateness, supporting equipment) -facilitating goods (variety, consistency, quantity of the physical goods that go with the service; for example, the food items that accompany a meal service) -explicit services (training of service personnel, consistency of service performance, availability and access to the service, and comprehensiveness of the service -implicit services (attitude of servers, atmosphere, waiting time, status, privacy and security, and convenience)
Triple Bottom Line
a business strategy that includes social, economic, and environmental criteria -economically the firm must be profitable -environmentally there is a need for nonpolluting and non-resource depleting products and processes presents new challenges to operations and supply managers
Efficiency
a ratio of the actual output of a process relative to some standard, also being efficient means doing something at the lowest cost possible
Six Sigma
a statistical term to describe the quality goal of no more than 3.4 defects out of every million units, also refers to a quality improvement philosophy and program
Internet of Things
a term that refers to the billions of devices that are connected to the internet data coming from these devices opens new opportunities such as the tracking of assets, intelligent monitoring of equipment to prevent failures, and dynamic reaction to changes in demand
Sustainability
ability to maintain a balance system, to meet current resource needs without compromising the ability of future generations to meet their needs
Manufacturing Philosophy: Total Quality Control
aggressively seeks to eliminate causes of production defects- is now a cornerstone in many manufacturers' production practices
Business Process Reengineering
an approach to improving business processes that seeks to make revolutionary changes as opposed to evolutionary (small) changes does this by taking a fresh look at what the organization is trying to do in all its business processes, and then eliminating non-value added steps and computerizing the remaining ones to achieve the desired outcome
Manufacturing Philosophy: Just in Time
an integrated set of activities designed to achieve high-volume production using minimal inventories of parts that arrive exactly when they are needed
Categorizing Operations and Supply Chain Process
can be conveniently categorized from the view of a producer of consumer products and services, as planning, sourcing, making, delivering, and returning
The Goods-Services Continuum
captures the main focus of the business and spans from firms that just produce to products to those that only provide services
Effectiveness
doing the things that will create the most value for the customer
Manufacturing Strategy Paradigm
how a factory's capabilities could be used strategically to gain advantage over a competing company
Total Quality and Management and Quality Certification
managing the entire organization so it excels in all dimension of products and services important to the customer
Product-Service bundling
refers to a company building service activities into its product offerings for its customers. this service evolves from focus on enhancing the product's performance to developing systems and product modifications that support the company's move up the value stream
Operations
refers to manufacturing and service processes used to transform the resources employed by a firm into products desired by customers
Supply Chain
refers to processes that move information and material to and from the manufacturing and service process of the firm
Electronic Commerce
refers to the use of the internet as an essential element of business activity
Mass Customization
the ability to produce a unique product exactly to particular customer's requirements
Value
the attractiveness of a product relative to its price
Supply Chain Management
the central idea of supply chain management is to apply a total system approach to managing the flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer
Operations and Supply Chain Management
the design, operation, and improvement of the systems that create and deliver the firm's primary products and services
Business Analytics
the use of current business data to solve business problems using mathematical analysis
Manufacturing Philosophy: Lean Manufacturing
to achieve high customer service with minimum levels of inventory investment
