Why study operations and supply chain management?
1. Every organization must make a product or provide a service that someone values
2. Most
... [Show More] organizations function as part of larger supply chain
3. Operations Management: the planning, scheduling, and control of the activities that transform inputs into finished goods and services
Supply Chains are very
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Operations Management
planning, scheduling, and control of the activities that transform inputs into finished goods and services
-Inputs
-Transformation process
-Outputs
Inputs
Materials, intangible needs, information
Transformation Process
manufacturing and service operations (this ADDS value)
Outputs
tangible goods, fulfilled needs, satisfied customers
Supply Chain Management
the active management of supply chain activities and relationships in order to maximize customer value and achieve a sustainable competitive advantage
Supply Chain
network of manufacturers and service providers that work together to create products or services needed by end users. These manufacturers are linked together through physical flows, information flows, and monetary flows
Upstream
activities or firms positioned either earlier in the supply chain
Downstream
activities or firms positioned late in the supply chain
First tier supplier
a supplier that provides products or services directly to a firm closet to you
Second tier
a supplier that provides products or services to a firm's first tier supplier
Anaheuser Busch's Supply Chain
Alcoa-> Ball Corp-> Anheuser Busch-> M&M-> Meijer
Supply Chain Operations Reference (SCOR) Model
standard way of explaining the supply chain
Planning activities
seek to balance demand requirements against resources and communicate these plans to the various participants
Sourcing activities
identifying, developing, and contracting with suppliers and scheduling the delivery of incoming goods and services (finding suppliers)
Make/ Production Activities
cover the actual production of a good or service
Delivery Activities
everything from entering customer orders and determining delivery dates to storing and moving goods to their final destination
Return Activities
the activities necessary to return and process defective or excess products
Subassembly
a part that is not the final product
SCC
supply chain counsel
Supply Chain
Raw Material-> Manufacturing Plant-> Distributor/Wholsaler-> Retailer-> End customer (Cash flow throughout process)
Important Trends
1. Electronic Commerce
2. Increasing Competition and Globalization
3. Relationship Management
electronic commerce
use of computer and telecommunications technology to conduct business via electronic transfer of data and documents
increasing competition and globalization
customers demands are changing and new competitors used to be local, but now are open to bigger markets
relationship management
organizations must manage the relationships with their upstream suppliers as well as their downstream customers
Professional Organizations
APICS- Association for Operations Management
ISM- Institute for Supply Management
CSCMP- Counsel of Supply Chain Management Professionals
ASQ-American Society for Quality
Potential Career Paths
Analyst, Production Manager, Service Manager, Sourcing Manager, Commodity Manager, Supplier development manager, international logistics manager, transportation manager
Major Operations and supply chain activities
a) process selection
b) forecasting
c) capacity planning
d)inventory management [Show Less]