Operations & Systems

8/8/2019 Operations & Systems

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` Why study Operations and Supply Chain

Management?

` Operations Management

` Supply Chain Management

` Important trends


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` Key issues surrounding the design and ongoing

management of these areas

` Common tools and techniques

` Analytical skills (both qualitative and quantitative)


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I. Pervasiveness

II. Interdependence

III. Profitability and Survival


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Every organization must make a product orprovide a service that someone values

Manufacturer.

Retailer.

Design firm.

University.

Health services.


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Most organizations function as part of a larger

supply chain


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` Networks of manufacturers and service providers that

work together to move goods from the raw material

stage through to the end user

` Linked through physical, information, and monetaryflows


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Organizations must carefully manage their

operations and supply chains to prosper, and

indeed, survive!

Shoe manufacturer: How many shoes should we

make? What mix?What resources do we need?

What will we outsource?Location?Key performance criteria -- Cost? Quality?

Speed?


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The planning, scheduling, and control of the

activities that transform inputs into finished goods and

services.


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The collection of people, technology, and

systems within a company that has primary

responsibility for providing the organizations

products or services.


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Transformation

Process

Manufacturing operations

Service operations

Inputs OutputsMaterials

People

Equipment

Intangible needs

Information

Tangible goods

Fulfilled requests

Information

Satisfied Customers


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` Tangible product

` Key decisions driven by physical characteristics of

the product: How is the product made?

How do we store it?

How do we move it?

Etc.


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` Intangible Product or Service

Location, Exchange, Storage, Physiological, Information

` Key decisions:

How much customer involvement?

How much customization?


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Operations

FinanceBudgeti g.

Anal sis.

Funds.

Marketi gWhat products?

What volumes?

Costs? Qualit ?

Deliver ?

HumanResources

Skills? Training?# of Emplo ees?

AccountingPerformancemeasurement s stems.

Planningand control.

MISWhat IT solutions

to make it all work

together?

DesignSustainabilit .

Qualit .

Manufacturabilit .


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Active management of supply chain activities and

relationships to maximize customer value and achieve a

sustainable competitive advantage


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` Length of the chain

` Complexity

` Stability

` Physical, informational, and monetary flows


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` Individual stores sent sales data daily to Wal-

Marts suppliers via satellite

` Suppliers plan production and ship based on this

sales data` Wal-Mart used its own dedicated fleet to ship from

its warehouses to stores


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` Stores order supplies electronically from K-Ks

warehouses

`At the warehouse Radio-frequency tag (RFID) technology to track the

location of inventory

`

Results: Fast and error-free ordering


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` Electronic commerce Reduce the costs and time associated with supply

chain relationships

` Increasing competition and globalization Fewer industries protected by geography

` Relationship management Competition between chains, not individual firms

Trust and coordination


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Documents

Operations & Systems