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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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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Operations and Supply Chain Processes

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Operations

Manufacturing and service processes used to transform resources into products

Supply Chain

Processes that move information and material to and from the firm

Process Steps for Men’s Nylon Supplex Parkas

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Each Section of OSCM: What Is Accomplished?

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Operations and Supply Chain Processes

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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

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Tangible

Less interaction with customers

Often homogeneous

Not perishable – can be inventoried

Pure Goods

Intangible

Interaction with customer required

Inherently heterogeneous

Perishable/time dependent

Defined and evaluated as a package of features

Core Services

Pure Services

Core Goods

Goods

Services

Careers in Operations and Supply Chain Management

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Plant manager

Hospital administrator

Branch manager

Department store manager

Call center manager

Supply chain manager

Purchasing manager

Business process improvement analyst

Quality control manager

Lean improvement manager

Project manager

Production control analyst

Facilities manager

Chief operating officer

Historical Development of Operations and Supply Chain Management

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Late 1970s

Early 1980s

Mid 1980s

Early 1990s

Mid 1990s

Late 1990s

Early 2000s

Mid 2010s

Manufacturing strategy developed

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

Service quality and productivity

Total 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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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 Value

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Efficiency

Effectiveness

Value

Doing something at the lowest possible cost

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

The attractiveness of a product relative to its cost

Efficiency and Wall Street

 

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