1. The Scope of Operations and Supply Management (OSM)
“n” tier
suppliers
Stakeholders
…….
1st tier
suppliers
Distributors
Customers
Operations
Management
Strategic
Sourcing
Logistics
Supply Chain Management
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Operations and Supply Management Supply Chain Processes
OSM-2
Operations and Supply Management
Supply Chain Processes
Enterprise Resource Planning:
Supply Chain Planning and Control Processes
Manufacturing
Processes
Sourcing
Processes
Distribution
Processes
Logistics
Processes
Logistics
Processes
Service
Processes

3. Forecasting-System Design Matrix:
OSM-3
Forecasting-System Design Matrix:
Framework Describing Forecasting Options
Complete
Regression
Collaborative
Time Series
Historic
data
Market
Research
Delphi
Incomplete
Objective
Type of analysis
Subjective

4. Customer Order Decoupling Points
OSM-4
Demand Management:
Customer Order Decoupling Points
Long
Low
Engineer-
to-order (ETO)
Make-to-order
(MTO)
Lead
Time
Volume
Assemble-
to-order
(ATO)
Make-
to-stock
(MTS)
Short
High
Raw
materials
Work-in-process
parts and components
Finished
goods
Suppliers
Decoupling Point

5. Inventory Control-System Design Matrix:
OSM-5
Inventory Control-System Design Matrix:
Framework Describing Inventory Control Logic
Independent
High
Manual
Two-Bin
Reorder Point/Equal
Order Period
Obsolete
Inventory
Risk
Type
Demand
Material
Requirements
Planning
Rate-Based
Synchronous
Planning
Dependent
Low
Low
Volume
High

6. Aggregate Planning (S&OP)-System Design Matrix:
OSM-6
Aggregate Planning (S&OP)-System Design Matrix:
Framework Aggregate Planning Options
High
High
Chase
Mixed – Hire/Fire,
Overtime,
Subcontract, etc.
Level –
Inventory &
Backorders
Workforce
change
flexibility
Excess
plant
capacity
Level –
Overtime, Subcontract
& Undertime
Low
Low
Low
Inventory Level
High

7. Project Management-System Matrix:
OSM-7
Project Management-System Matrix:
Framework Describing Project Scheduling Options
High
Critical Path
Method (CPM)
Resource
Constrained
Project Mgmt
Time-Cost
Model
Task time
certainty
Program Evaluation
and Review
Technique (PERT)
Low
High
Resource availability
Low

8. Manufacturing Product – Process Matrix:
OSM-8
Manufacturing Product – Process Matrix:
Framework Describing Manufacturing Processes
Low
One-of-kind
Project
Workcenter
Product
Standardization
Manufacturing
Cell
Assembly
Line
Continuous
Process
High
Standardized
commodity
product
Low
Product Volume
High

9. Service-System Design Matrix: Framework Describing Service Processes
OSM-9
Service-System Design Matrix:
Framework Describing Service Processes
Low
Low
Mail
Internet
Sales
opportunity
Cost
Phone
Face-to-face
tight specs
Face-to-face
custom
High
High
Low
Degree of customer/server contact
High
Copyright © F Robert Jacobs 2007

10. Quality Tools Matrix Feedback Delay Long Short High Capability Index
OSM-10
Quality Tools Matrix
Feedback
Delay
Long
Short
High
Capability
Index
100%
Inspection
DMAIC
Six-sigma
Tools
Cost of
Quality
Assurance
Control
Charts
Acceptance
Sampling
Low
Process
Design
Process
Improvement
Process
Monitoring
Inspection

11. Logistics-System Design Matrix:
OSM-11
Logistics-System Design Matrix:
Framework Describing Logistics Processes
High
Low
Pipeline
Water
Rail
Variable
Cost
Volume
Highway
Air
Hand
Delivery
Low
High
Slow
Speed of delivery
Fast

12. Sourcing/Purchasing-System Design Matrix:
OSM-12
Sourcing/Purchasing-System Design Matrix:
Framework Describing Purchasing Processes
Short
Low
Request for
Proposal
Spot
Purchase
Request for Bid
And
Reverse Auctions
Specificity
Contract
Duration
Electronic
Catalogue
Strategic
Alliance
Vendor
Managed
Inventory
Long
High
High
Transaction costs
Low

13. Warehouse-System Design Matrix:
OSM-13
Warehouse-System Design Matrix:
Framework Describing Warehouse Processes
High
Low
Manual Storage
and Retrieval
Zone Storage
and Manual Wave
Retrieval
Volume
Flexibility
Auto S/R
Carousel Order
Sorting
Cross-
Docking
Low
High
Low
Facility fixed costs
High