Download presentation
Presentation is loading. Please wait.
1
Introduction to Operations and Supply Chain Management
2
Chapter Objectives Be able to:
Describe what the operations function is and why it is critical to an organization’s survival. Describe what a supply chain is and how it relates to a particular organization’s operations function. Discuss what is meant by operations management and supply chain management. Identify some of the major operations and supply chain activities, as well as career opportunities in these areas. Make a case for studying both operations management and supply chain management. ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
3
Introduction Why study Operations and Supply Chain Management?
Operations Management Supply Chain Management Important trends LeapFrog case study ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
4
Focus Key issues surrounding the design and ongoing management of these areas Common tools and techniques Introduction to the SCOR model Analytical skills (both qualitative and quantitative) ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
5
Why Study Operations and Supply Chain Management?
6
Three Basic Truths Pervasiveness Interdependence
Profitability and Survival ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
7
Pervasiveness Every organization must make a product or provide a service that someone values…………. Manufacturer. Retailer. Design firm. University. Health services. ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
8
Interdependence Most organizations function as part of a larger supply chain Discussion with class about what kinds of operations and suppliers are required to realize a basic product idea like a running shoe, beginning with the initial design concept. ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
9
Supply Chains 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 monetary flows ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
10
Profitability and Survival
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? ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
11
Operations Management
The planning, scheduling, and control of the activities that transform inputs into finished goods and services
12
Operations Function The collection of people, technology, and systems within a company ... … that has primary responsibility ... … for providing the organization’s products and/or services. ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
13
Viewing Operations as a Transformation Process
Manufacturing operations Inputs Outputs Materials People Equipment Intangible needs Information Tangible goods Fulfilled requests Information Satisfied Customers Service operations ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
14
Manufacturing 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. ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
15
Services Intangible “Product” or Service Key decisions:
Location, Exchange, Storage, Physiological, Information Key decisions: How much customer involvement? How much customization? ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
16
Cross-Functional Linkages
MIS What IT solutions to make it all work together? Finance Budgeting. Analysis. Funds. Human Resources Skills? Training? # of Employees? Design Sustainability. Quality. Manufacturability. Operations and Supply Chain Marketing What products? What volumes? Costs? Quality? Delivery? Accounting Performance measurement systems. Planning and control. ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
17
Supply Chain Management
Active management of supply chain activities and relationships to maximize customer value and achieve a sustainable competitive advantage Example: Buying co-ops for independent hardware dealers
18
Material Flows First Tier Supplier Distributor Retailer
Alcoa Ball Corp Anheuser-Busch M&M Meijer First Tier Supplier Distributor Retailer Transportation companies Final customers Upstream Downstream Second Tier Supplier ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
19
Supply Chain Issues Length of the chain Complexity Stability
Physical, informational, and monetary flows Use Dell Computer as an example for a class discussion of the possible issues. ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
20
Supply-Chain Operations Reference (SCOR)* Model
Consists of: Planning activities Sourcing activities “Make” or production activities Delivery activities Return activities * Supply-Chain Council, Discussed in more detail in Chapter 3 ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
21
SCOR Model © Supply-Chain Council, 2007
©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
22
Wal-Mart — Early 1990s Individual stores sent sales data daily to Wal-Mart’s 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 ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
23
Panera Bread — 2006 4th quarter revenues and profits up 25% and 8%, respectively, over th quarter* >200 million pounds of dough delivered by 110 trucks traveling 9.7 million miles annually *Panera Bread, 4th Quarter 2006 Earnings Report, ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
24
Important Trends Electronic commerce
Reduces 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 Use Boeing, as an example for reducing supply chain costs and time. ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
25
Operations and Supply Chain Management and You
Some of the many career positions Analyst Commodity Manager Customer Service Manager International Logistics Manager Logistics Services Salesperson Production Manager Sourcing Analyst Logistics and Material Planner Systems Support Manager (MIS) Transportation Manager Process Analyst Scheduler Purchasing Agent ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
26
Operations and Supply Chain Activities
Process selection, design, and improvement Forecasting for decision making Capacity planning for capital investment and resource levels Inventory management for amount and location Planning and control for work scheduling and meeting demand Purchasing, managing supplier relationships Logistics or acquisition and distribution ©2008 Pearson Prentice Hall --- Introduction to Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN:
27
Case Study Introducing Operations and Supply Chain Management
LeapFrog
Similar presentations
