SCM 303 Exam 1

Customer service management

(i think this is what it is asking for) Customer management: management of the customer interface, including all aspects of order processes and fulfillment. Functional groups directly concerned with CM have names such as distribution, sales, and customers service. Managers in these functions are always thinking about way to improve customer satisfaction

Amazonization and Uberization

*Amazonization: Buying online wherever you are, if you do not need it tomorrow, It will be here eventually ~ 45 min to go to Walmart and get product, amazon allows efficiency --ORDERING IT FOR DELIVERY -implies that things have become more Amazon-like and that Amazon has become the dominant force in the industry. *Uberization: the act or process of changing the market for a service by introducing a different way of buying or using it, especially using mobile technology: (ex: uberization of banking)

Total cost of ownership (TCO)/ Total product experience (TPE)

*TCO*: total cost of ownership How much product costs, how much to hold it; If you drop pallets of wine at warehouse, cots associated *TPE*: total product experience Understand what customer is looking for and give it to them; EX: high end wine place vs warehouse~ different experiences

Strategic planning hierarchy: corporate planning, strategic business unit (SBU), functional planning //Describe how operations strategy fits within a firm's overall strategic planning process

- *Strategic planning: long term decisions defining the objectives and capabilities - *Strategic business unit (SBU): semi-independent organization for different product or markets -Identification of customer or market segments. (owner or stakeholder is corporation NOT outside investors) -Appropriate competitive priorities Constrained by corporate strategy -More detailed -Shorter time horizon -*Corporate strategic planning: broadest and least constrained; decision made at this level limit the choices that can be made at lower strategic planning levels. Determines overall mission of the firm and the types of businesses that the firm wants to be in. Addresses what businesses to acquire or divest ; covers long time horizon -*Functional strategy: determines how the function will support the overall business unit strategy. This level is most detained and most constrained bc it must operate within a set of decisions made in the corporate and SBU strategic plans The functional strategy must addresses these question (how do we meet corporate planning and SBU objectives)

Industry 1.0/ 2.0/ 3.0/ 4.0

- 1.0: Mechanization, water power , steam power -2.0: Mass production, assembly line, electricity -3.0: Computer and automation -4.0: Cyber physical, systems (a new phase in the industrial revolution that focuses heavily on interconnectivity, automation, machine learning and real-time data)

Describe the need for "fit" between the key customers, value propositions and operations capabilities - the essential elements that define an operations strategy.

- At heart of operations strategy is notion of fit: extent to which there is alignment between the firm's operational capabilities, its value proposition, and the desires of its critical customers; maintaining fit is imperative for a firm's survival overtime

Identify the partners and functional groups that work together in operations management

- Customers : anyone (individuals or orgs) that uses or consumes the products of of operations management processes. Need to clearly identify customers to structure OM -Types include: internal, intermediate, and final -Ex: car manufacturer: a company owned distribution center might be considered an internal customer of the manufacturing group; dealership is intermediate and people who by car are final customers - Suppliers: parties that provide inputs to operational processes. Types of suppliers: -Upstream product suppliers: typically provide raw materials, components, and services directly related to manufacturing or service production processes -Downstream product supplier typically provide enhancements to finished goods such as assembly, packaging, storage, and Transporation services -Resource and tech suppliers provide equipment, labor, product and process designs, and other resources needed to support a firms processes - stakeholders

fundamental SC processes

- Demand planning responsiveness: the assessment of demand and strategic design to achieve maximum responsiveness to customer requirements -Customer collaborations: the Developmemt and admiration of relationships with customers to facilitate strategic information planning, joint planning and integrated operations -Important to know what customers will want to buy over the next few months—helps procurement order right product// Looks downstream - Order fulfillment and delivery: the ability to execute superior and sustainable orders to the delivery performance, and related essential services-If your customer wanted 1 hr window to deliver product compared to 1 day - Product or service development launch: The participation product and service development and lean launch-Lean launch: if your customer the grocery store wants to buy a new apple for a new apple pie recipe, if u know that early on, procurement can get new apples and phase old apples out of inventory—leads to lower costs. Lean =lower costs and less waste - Manufacturing management and customizations: the support of manufacturing strategy and facilitation of postponement throughout the supply chain-Ex: one customer needs 4 hr window and one is a 4 day window; we can customize need. Customer may pay premium to get that 4 hr window. This could be more than warehousing the product - Supplier collaboration: the development and administration of relationships with suppliers to facilitate strategic information sharing, joint planning and integrated operations-Looks upstream. With Apple pie example: If we hear about that from the customers, we can change operations. Then we tell the supplier—cant just change in one day - Life cycle support: the repair and support of products during their life cycle, includes warranty, maintenance, and repair-Sometimes we need to repair along the way. In apple example, we watch to see if apples bruise. Need to monitor lose cycle so we don't lose money - Returns management and reverse logistics: the return and deposition of inventories cost-effectively and securely-A lot of companies have done curb side pickup, changes in returns from this///Big increase in returns at stores lately//Returns increased from 15 to 40% since pandemic and people buy three to try and choose one

Direct, extended and ultimate supply chain

- Direct supply chain (internal): consists of a company, a supplies and a customer involved in the upstream and or downstream flows of products, services, finances and/or information Ex: if you make bread, you buy grain and package supplies, transfer into product, and sell to a buyer - Extended supply chain (external, buy from one supplier): includes supplies of the immediate supplies and customers of the immediate customer, all involved in the upstream and/or downstream flow of products, services, finances, and/or information Ex: manufacture to distributor to broker to grocery store - Ultimate supply chain (everything-customer and investor a part of business): includes all of the organizations involved in all of the upstream and downstream flow of products, services, finances, and information from the ultimate supplier to the ultimate customer Ex: may buy ovens, not part of taking the raw material and making into bread and selling it but is still a key function In regard to "everything": as an investor, employee owner (keep my job) or CEO... what do you care about?

contribution of SCM

- Functional SCM activities that can impact enterprise profitability: -Purchasing= 70% of the impact: including goods and services suppliers, including assurance of supply (AOS) and early supplier involvement (ESI), the total cost of ownership (TCO) and conditions (T's and C's), compliance and others -Operations = 20-25% of the impact : including management of quality, planning for materials and scheduling, customer order fulfillment, and other -Logistics = 5-10 % OF THE IMPACT: including warehousing, shipping, customs, and customer fulfillment -Cost of goods (routine) -Cost of non-conformity (unexpected) -Where TCO, TCE and risk and variability come in—where we can optimize costs

Value: key customers, value proposition, capabilities

- Key customers: a customer that the firm has targeted as being important to its future success; receive priority (may be responsible for the largest current o future sales of the firm, or one with highest prestige) - *Value proposition: a collection of product and service features that is both attractive to customers and different than competitors offerings; includes all intangible and tangible "benefits" hat customers can expect to obtain by using the products offered by the form -*Capabilities: unique and superior operational abilities that stem from the routine skills, and processes that the firm develops and uses ; define the types of problems and solutions that operations can address proficiently

Operations/ operations management

- Operations management: is the management of process used to design, supply, produce and deliver valuable goods to services to customers -Operations management activities located throughout a supply chain create and enhance value of goods and services by increasing their economic value, functional value, and physiological value

Role of the board of direction -and you investors- in decision making

- Owners: individuals, groups, stockholders, mutual funds owners.. And YOU. these owners appoint BOD to over see operations. BOD choose CEO, CFO,CRO - (represent owners??) The owners set the key success metrics such as a stock price, revenue growth, CSR goals, RISK/ risk tolerance

Product related priorities: quality, timeliness, cost

- Product related priorities address the customer's problem to be "solved" and are communicated in terms of the quality, timeliness, and cost of the product and service "solution" -*Quality: a products fitness for consumption in terms of meeting customer's needs and desires; assessment of how well the customer's expectations are met. Some dimensions of quality are often viewed by customers as min requirements (order qualifiers) for most products -*Timeliness: degree to which the product is delivered or available when the customer wants it; primary indicators of customer service -*Cost: expenses incurred in acquiring and using a product. Customers like to get things cheap but not bad quality; describes both the attraction and the challenge of emphasizing cost as the form's major source of value Purchase cost (price)- usually most important for consumer goods , maintenance and operating costs - often much more important for customer buying long-life items such as industrial machinery, disposal cost- becoming more important considerations for durable goods (cars, washing machines) because of growing environmental concerns

Explain what product-related and process-related operational competitive priorities and how they are related to competitive advantage

- Product related priorities address the customer's problem to be "solved" and are communicated in terms of the quality, timeliness, and cost of the product and service "solution" -Process-related competitive priorities: Capabilities developed in these areas contribute to supply chain operations' abilities to create new solutions and respond effectively to changes in tech, competition, and the overall operating environmen

Defined the planning activities associated with managing operations across the supply chain

- Strategic planning: a type of planning that addresses long term decisions that define the operations objectives and capabilities for the firm and its partners (would include new products to develop, where to locate new plants, and what technologies to buy) - Tactical planning: addresses intermediate term decision to target aggregate product demands and to establish how operational capacities will be used to meet them (addresses planning usually spanning month/ occur more frequently then strategic planning) - Operational planning: a type of planning that established short term priorities and schedules to guide operational resource allocations ( weeks or days of activity// occur more frequently then strategic planning)

Explain what the supply chain is and what it means to view operations management using a supply chain perspective

- Supply chain: global network or orgs and activities involved in designing a set of goods and services and their related process, transforming inputs into goods and services and consuming these goods and services and disposing of these goods and services - Overlap between operations management and supply chain management : OM focuses on managing processes, SCM focuses on managing relationships and flows. Think of supply chain management as a way of viewing operations management or supply chain as a network of orgs in which the operations activities are conducted

TCO, TPE and the associated application of "risk"

- TCO: total cost of ownership How much product costs, how much to hold it - TPE: total product experience Understand what customer is looking for and give it to them - Life: variability, what could go wrong? - "Ideal" is in middle of triangle - Always balance cost, customer and variability

Business model impact on supply chain strategy

- combo of the choices determining the customers an SBU will target, the value propositions it will offer, and the supply chain/operations management capabilities it will employ -Razor blades: sell them separate -Direct sales: sell computers directly to customers -Loyalty: customers want to stay with firms - Changes in tech, competitors and markets can at the same time destroy the viability of an existing business model while giving rise to new ones

supply chain challenges

- digitalization -sustainability - glocalization (local/global at the same time- how can we be both) - lack of talent with required technical and soft skills - amazonization and uberization - curbside pick up - micro- allocation (having more product closer to the customer)

Customer: order winners, qualifiers, losers

-*Customer: parties that use or consume the product of operations management processes. a customer is not necessarily the end user -*Order winners: product traits that cause a customer to select one product over its competitor. For ex: better performance or lower price; traits on which operations management system must excel -*Order qualifiers: these are product traits such as availability, price, or conformance quality that must meet a certain level in order for the product to even be considered by customers. The firm must perform acceptably on these traits, usually at least as well as competitor's offerings -*Order losers: poor performance on these product traits can cause the loss of either current or future business. For example, when an online retailer fails to deliver an order in a timely manner, a customer might cancel order and refuse to place more -Order winners and qualifiers form the basis for customer's expectation's. Order losers result from customers actual experiences- represent gap between what firm delivers and what customers expect -All three VARY by customers

explain the role of processes and process thinking

-A process is a system of activities that transforms inputs into valuable outputs. Can also transform people from one condition to another -Companies use design processes to develop new goods and services and strategic planning processes to determine how a firm should compete. They use production process to plan and execute the supply, manufacture, and delivery of goods and services to customers. They use evaluation process to measure and report how well they are meeting their goals or using resources

Strategic profit model (ROA)

-AKA DuPont model: model that shows how operational changes affect the overall performance of a business unit -Return on assets- the focal of optimization all the activities -SPM focuses on ROA: how profitably a firm uses assets (net profit margin/ total assets) ~ higher ROA = better level of performance

scope of enterprise and activites

-An enterprise which could be a company, a nonprofit org (NPO), or non-governmental org (NGO) or a government, association, ME -NGO is constrained by a financial budget if only to move volunteers -Government or governmental org has budgetary limits as well - The scope is for all types of supply chain related activities, from manufacturing products such as cars or food to managing services such as a bank or hotel or a class room of students (logistics- deliver videos to customer, customer satisfaction: assurance of learning) or planning dinner at home (going to grocery store)

Activity types: direct, indirect, quality assurance

-Direct: involved in creating value for the buyer such as assembly parts, parts machining, salesforce operation, advertising, product design , recruiting, etc. - Indirect: make it possible to perform direct activities on a continuing basis, such as maintenances, scheduling, operation of facilities, salesforce admin, research admin and vendor record keeping, etc. - Quality assurance: ensure the quality of the other activities, such as monitoring, inspecting, testing, reviewing, checking, adjusting, and reworking. Quality assurance is not synonymous with quality management because many value activities contribute to quality

Lead time, time to market, order to delivery time

-Lead time: amount of time that passes between the beginning and end of a set of activities -Time to market; (type of led time): total time that a firm takes to conceive, design, test, produce, and deliver a new or revised product for the marketplace; this lead time is a once-in-product-life-cycle event; could be order winner if new product offers features or performance that are not available in other products - Order to delivery lead time: (type of lead time): the time that passes from the instant the customer places an order for a product until the instant that the customer receives the product ; important for highly customized product

Explain how strategic performance can be assessed bother operationally and financially by using the strategic profit model and the supply chain operational reference model

-SPM is useful for evaluating both operational and marketing based plans and actions and answering what if questions ~ enter dollar values of operational changes in the categories show on the right side of the SPM. The calculations in the SPM then reflect the impacts of these changes on financial measures shown on the left side of the SPM - The model reduces all aspects of performance into one number, ROA, making it simple to compare over different time periods and divisions.

Supply chain management/ supply management

-Supply chain: "is defined as a set of three or more entities (organizations or individuals) directly involved in the upstream and downstream flows of products services, finances, and/or information from a source to a customer (*TRANSFER key word)

major decisions that operation managers typicall make

-What?: What goods and services should be delivered by the system; What activities and resources are needed, and how should they be developed, allocated and controlled - How?:How is the good or service to be designed, made, and delivered: How much (what capacity) should our process be able to deliver ( and under what conditions): How should we measure and assess performance - When?: When should products be made, activities be carried out, services be delivered, or capacities/ facilities come on line? -Where and who: Where should certain activities be done, and who should do them: suppliers, partners or the firm? - Operations manager answer these questions by defining both the structural and infrastructural aspects of the operations management system. -Structural decisions affect physical resources such as capacity, facilities, tech, and supply chain network; altering these decisions takes a lot of time and money -Infrastructural decisions affect the workforce, production planning and control, process innovation and organizations. Decisions in these areas determine what is done, when it is done and who does it. Decision in all of these areas are interrelated, making OM a cross function activity

Integrated supply chain and ISCM management

-the consideration of all supply chain activities into one seamless system -Overall stakeholders demands, product development and sourcing, production and manufacturing, transportation and logistics including reverse logistics (returning stuff) , customer management and the cycle back to product development and sourcing (notes) -Cross-functional activities that occur across the supply chain include: Quality assurance and management, environmental sustainability and corporate social responsibility, regulatory and standards compliance, crisis management and reducing the vulnerability of non- traditional disruptions, and others -Also includes the fundamental supply chain process of: Demand planning responsiveness, customer collaboration, order fulfillment and delivery, product and service development launch, manufacturing management and customization, supplier

Value activities, value chain

-value chain: a basic tool for diagnosing the competitive advantage and finding ways to create and sustain it; activities that are performed to design, produce, market, deliver and support its product - value chain primary activities: -Inbound logistics: the activities associated with receiving, storing and disseminating inputs to the product such as materials handling, warehousing, inventory control, vehicle scheduling and returns to suppliers -Operations: activates associated with transforming inputs into the final r product form, such as machinery, packaging assembly, equipment maintenance, testing, packaging, and a facility operations -Outbound logistics: the activities associated with collecting, storing and physically distributing the product to buyers such as finished goods warehousing, material handling, delivery vehicle operations, order processing and scheduling -Marketing and sales: activities associated with providing a means by which buyers can purchase the product and inducing them to do so, such as advertising, promotion, salesforce, quoting, channel selection, channel relations, and pricing -Service: associated activities with providing service to enhance or maintain the value of the products such as installation, repair, training, parts supply and product adjustment

choosing and strategy (corporate strategy)

A key part of how an enterprise chooses a corporate strategy is based on its own unique assets, capabilities and customers (value proposition- defined by factors in the value stream)

Sustainability, triple bottom line, 3 P's

Companies have adopted triple bottom line: approach to corporate performance measurement that focuses on a company's total impact measured in terms of profit, people (social responsibility) and the planet (environmental responsibility) also referred to as the TBL, 3BL or *3P

Stakeholders

Groups of people who have a financial or other interest in well being of an operation (employees, unions, local community, social groups (animal's rights), gov and financial investors

Logistics/ distribution

Logistics (including material handling, storage, distribution and reverse logistics): Moving goods through from procurement through operations to the final customer

Risk management/ inherent variability

Monitoring and managing the unknowns or variables that are inherent and omnipresent If it happens a lot (like a hurricane) put a plan in that reduces exposure

Process-related priorities: innovations, flexibility, risk management, sustainability

Process-related competitive: Capabilities developed in these areas contribute to supply chain operations' abilities to create new solutions and respond effectively to changes in tech, competition, and the overall operating environment -Innovation: both radical and incremental changes in processes and products ; important way to create new demand. It may be a response to emerging customer needs, or a way to create new needs. It has different formats: product innovation, process innovation, customer innovation, business model innovation and SC innovation -Flexibility: a person's ability to respond efficiently to changes in products, processes (including supply chain relationships), and competitive environments; With decreasing product life cycles, rapidly changing tech, and growing pressure to meet localized, specific customer needs, flexibility has become an important thing -Risk management: developing operations that anticipate and deal with problems resulting from natural events, social factors, economic issues or tech issues; want to anticipate. Safety, quality and product security are also growing concerns; Digitalization of operational processes is largely enables by tech advances such as IOT, big data, analytics, robotics, and computing capabilities -Sustainability: in recent years OM have begun to address sustainability more directly as competitive priority rather than compliance issues and OM's want to ensure the workers are treated safely and given a safe work environment

Purchasing / procurement

Procurement: the function of purchasing inputs used in the firm's value chain, not to the purchased inputs them self. Purchased inputs include raw materials, supplies, and other consumable items as well as assets such as machinery, laboratory Equpment, office equipment, and buildings

Tier/ echelon

Tier: an upstream stage of supply/ echelon: downstream stage of supply or consumption (could include partners in locations all over world) Teir 1 supplier is you order from them and you pay them (upstream) Tier 2: is their suppliers ^ (upstream) Tier 3: is their suppliers ^ (upstream)

Operations strategy

set of competitive priorities coupled with supply chain structural and infrastructural design choices intended to create capabilities that support a set of value propositions target to address the needs of critical customers

Enterprise

company, non-governmental org, governmental org, association and you ~ in hw question it says " for our class an enterprise could be "any entity or group"

Generalized supply chain model, and the five steps

generalized supply chain: refers to simple activities based on the flow of product from *raw materials*, *supply network* that Is based on nodes including the incoming goods, the *enterprise* (procurement, operations manufacturing, and customer relationship management connected by logistics), a *distribution network* or activity, the *customer and then the final consumer* of the products