Operations and Supply Chain Management

Planning
consists of processes needed to operate an existing supply chain strategically. Major aspect: develop a set of metrics to monitor the supply chain so that it is efficient and delivers high quality and value to customers.
Sourcing
selection of suppliers that will deliver the goods and services needed to create the firm’s product. A set of pricing, delivery, and payment processes is needed togehter metrics of monitoring and improving the relationships between partners of the firm. Like receiving shipments, verifying them, transferring them to manufacturing facilities and authorizing supplier payments.
Making
where major product is produced or the service provided. Requires scheduling processes for workers and coordination of material and other critical resources like equipment to support producing or providing the service. Metrics that measure speed, quality, and worker productivity are used to monitor these processes.
Delivering
logistics processes. Carriers are picked to move products to warhouses and customers, coordinate and schedule the movement of goods and info through supply network, develop and operate a network of warehouses, and run the info systems that manage the receipt of orders from customers, and invoicing systems to collect payments from customers.
Returning
processes for receiving worn-out, defective and excess products back from customers and support for customers who have problems with delivered products. It may involve activities that are required for after-sales support.
Operations and supply chain management (OSCM)
Design, operation, and improvement of the systems that create and deliver the firm’s primary products and services. concerned with management of the entire system.
Servitization
Building service activities to support a firm’s product offerings.
Efficiency
Doing something at the lowest possible cost.
Effectiveness
Doing the right things to create the most value for the company.
Value
Ratio of quality to price paid. Competitive “happiness” is being able to increase quality and reduce price while maintaining or improving profit margins. (This is a way that operations can directly increase customer retention and gain market share.)
Mass customization
Producing products to order in lot sizes of one.
Sustainability
The ability to maintain balance in a system.
Triple bottom line
Relates to the economic, employee, and environmental impact of the firm’s strategy.
Supply Chain
Pipelike movement of the materials and info needed to produce a good or service.
Service
A business where the major product is intangible, so that it cannot be weighted or measured.
Total Quality Control
A philosophy which aggressively seeks to eliminate causes of production defects.
Business Process Reengineering
An approach that seeks to make revolutionary changes as opposed to evolutionary changes ( which is advocated by total quality management.)
Lean Manufacturing
an approach that combines TQM and JIT.
Six sigma
tools are are taught to managers in “Green and black belt programs.”
Service science management and engineering
a program to app;y the latest concepts in information technology to improve service productivity.
Planning QQ
the processes needed to determine the set of future actions required to operate an existing supply chain.
sourcing QQ
selection of suppliers.
making QQ
a type of process that moves products to warhouses or customers.
delivery QQ
a type of process that moves products to warehouses or customers.
Returning QQ
process that involve the receiving of wornout, defective, and excess products back from customers and support for customers who have problems.
servitization
when a company build service actitvities into its product offerings.
Efficiently
doing something at the lowest possible cost.
effectively
doing the right thing to create the most value for the company.
value
quality/price.
sustainable strategy is critical because
-meets the needs of shs and employees
-preserves the environement
-supply networks need with preferences of customers
-supply refers to processes that move info and material to and from the manufacturing and service processes of the firm.
difference between services and goods
1. Services are intangible
2. services requires some interaction with the customer
3. services are inherently heterogeneous
4. services are perishable and time dependent
5. services are defined and evaluated as a package of features.
the goods-services continuum
pure good, core goods, core services, to pure services.
servitization strategies
-company building service activiteis into its product. like training and maintenance.
-success starts by drawing together the service aspects of the business under one roof.
-servitization may not be the best for all companies.
Historical development of operations and supply management
-lean manu, JIT, and TQC
-Service quality and productivity
-total quality management (TQM)
-Business process reengineering
-Six-sigma quality
-supply chain management
-electornic commerce
current issues in operations and supply management
1. coordinating the relationship between mutually supportive but separate orgs.
2. optimizing global suppliers, production, and distribution networks
3. managing customer touch points
4. raising senior management awareness of operations as a significan competitive weapon.
5. sustainability and triple bottom line.