...Chapter 01 Operations and Supply Chain Management Learning Objectives for Chapter 1 1. Understand why it is important to study operations and supply chain management. 2. Define efficient and effective operations. 3. Categorize operations and supply chain processes. 4. Contrast differences between services and goods producing processes. 5. Identify operations and supply chain management career opportunities. 6. Describe how the field has developed over time. True / False Questions 1. Efficiency means doing the right things to create the most value for the company. True False 2. Effectiveness means doing the right things to create the most value for the company. True False 3. A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we could refer to this doctor as being efficient but not effective. True False 4. A worker can be efficient without being effective. True False 5. A process can be effective without being efficient. True False 6. Operations and supply management is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services. True False 7. The term "value" refers to the relationship between quality and the price paid by the consumer. True False 8. Attempting to balance the desire to efficiently use resources...
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...Every organization creates a product or service that is valued by someone. The operations are the task that create value. Operation’s management is the planning, scheduling, and control of the activities within a company’s walls to manufacture a product or service. For example, an automobile company that makes high quality cars takes sheet steel, engines parts, tools, equipment and workers (inputs/resources), assembles and fabricates its inputs with its resources (transformation process) thus creating high quality cars (desired output). Supply Chain Management includes the activities that must take place to get the right product into the right consumer’s hand from gathering raw materials to consumer purchase, while maximizing customer value and achieving a competitive advantage. When looking at the automobile example, supply chain management would get the manufacturing parts from suppliers to the operation, assemble it, and then make sure the consumer receives the product. SUPPLY CHAIN MANAGEMENT OPERATIONS MANAGEMENT SUPLLY CHAIN MANAGAMENT In the supply chain organizations are linked together through upstream and downstream activities. Upstream activities, or firms, are positioned earlier in the supply chain relative to another activity or firm if interest, therefore anything to the left of the operation is upstream. For example harvesting cotton takes place upstream of weaving fabric, and weaving fabric takes place upstream...
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...Operations and Supply Management: Goods and Services Similarities and Differences between Goods and Services The similarities between good and services are that goods and services provide value to the customer, and they can both be made to fit what a customer wants or needs. The delivery of both goods and services require a process to get to final delivery, so operations management is a critically important skill for both (Collier, 2007). According to Jacobs, there are five things that differentiate goods from services. They are, first, a service is an intangible process that cannot be weighed or measured, but a good has a physical presence that can be. Second, a service must be delivered via interaction with a customer whereas a product is manufactured somewhere away from the customer. Third, how a service is delivered varies as this is dependent on the customer, the service provider and the situation, but the production of goods has no variability. Fourth, the process of delivering a service is dependent on time and can’t be stored, and fifth, services are evaluated as a package of features that include the facility, goods involved in the process, and explicit and implicit services (Jacobs, pp. 11-12). Collier goes on to name a few more differences, namely the demand for services is more difficult to predict and service management skills are vital to the successful delivery of a service. Operations Management and Production Differences for Goods and Services ...
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...Report On Supply Chain & Operation Management In this report I had mentioned the brief about the Supply Chain & Operation Management production line of Different Caps & bottle, raw materials, machinery used and more. 2013 Mahaveer Prasad Mawaliya 09/12/2013 A Report A Study on the Supply Chain & Operation Management At Super Packaging Pvt. Ltd. A REPORT ON A STUDY ON THE SUPPLY CHAIN & OPERATION MANAGEMENT By Mahaveer Prasad Mawaliya ID: 101CC00047 AT Super Packaging Pvt. Ltd. An Internship Program III station of FACULTY OF SCIENCE & TECHNOLOGY The ICFAI University, Dehradun (December, 2013) A REPORT ON A STUDY ON THE SUPPLY CHAIN & OPERATION MANAGEMENT By Mahaveer Prasad Mawaliya ID: 101CC00047 Computer Science Prepared in partial fulfillment of the IP401 Internship Program – III Course AT Super Packaging Pvt. Ltd. An Internship Program III station of FACULTY OF SCIENCE & TECHNOLOGY The ICFAI University, Dehradun (December, 2013) ICFAI INSTITUTE OF SCIENCE AND TECHNOLOGY Internship Program Division Station: Super Packaging Pvt. Ltd. Center: Selvas (Dadar) Duration: From July 02, 2013 to December 14, 2013 Date of Start: July 02, 2013 Date of Submission: December 14, 2013 Title of the Project: A Study on the Supply Chain & Operation Management Mahaveer...
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...near his factory in La Coruna in northern Spain, to sell this overstock merchandise himself. Since then, Zara has expanded into 500 stores in 68 countries as of January 2007 and has become a leader in customized fashion retailing. Learning from his early bad experience, Ortega developed a highly vertically integrated operation where a majority of the company’s production processes are kept in-house. Zara’s operational brilliance does not rest upon one specific operational component, but rather on a very unique and almost counterintuitive “jigsaw puzzle” of supply chain structure that has allowed it to grow market share and sales, even in times of economic decline. Zara has developed a business model with some basic operational goals: provide consumers with affordable and stylish clothes in very short lead times, supply small quantities of each style to reduce inventory risk and cost and increase the number of available styles and choice. It has created a unique value for its customers – offer very affordable and cutting-edge designer knock-off fashion much faster than its competitors. Its main competitors –H&M, Gap and Benetton – have all developed traditional supply chains that include heavy outsourcing to low-cost labor countries, long product cycles and a focus on a bottom line per-unit cost, rather than focusing on the value of the whole chain. Zara’s success is largely due to the unique combination of operational elements of...
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...Supply Chain Management: Challenges, Remedies and the Impact of change - Overview By Adawari Josiah Jumbo Student No.: 15522057 Submitted To Laureate Online Education & University of Liverpool – Online Masters Degree In Partial fulfillment for the award of Master of Science (M.Sc.) Degree in Operations and Supply Chain Management Instructor: Professor Anshuman Khare 2010. ACKNOWLEDGEMENT I am delighted to say thanks my Instructor Professor Anshuman Khare for your professional support and supervision all through this module including this project work for your encouragement is commendable. The learning acquired through interaction with my course mate has been tremendous, I therefore say thanks to my entire class mate. I also appreciate all authors whose works aided me in this project. I am sincerely indebted to all of you. To God, I say thanks for your kindness and support for this programme. Adawari Josiah Jumbo ABSTRACT This research was carried out to find out the challenges and the economic and operational impact of change on supply chain, including the options available to improve the challenges and create increased performance on the chain. To drive home the study we focused on PHRC Limited in Nigeria. We also undertake a comprehensive review of...
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...Name: Keisha Teixeira Student ID: 2424543 Course Number: MGT 215-SP Course Name: Operations, Logistics, and Supply Chain Management Title of the Assignment: Assignment 1 Date: February 10, 2013 References Heizer, Jay & Render, Barry (2005). Operations Management, Flexible Version (7th Edition). Upper Saddle River, New Jersey: Pearson. What is the WTO? http://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm . Accessed on 10 February 2013) Hartman, Stephen Dr. Production and Operations Management. New York Institute of Technology. http://iris.nyit.edu/~shartman/mba0299/pom0299.htm. (Accessed on 10 February 2013) (1) Select a technology from 1850 to the present. Describe how it has affected productivity. Let us examine the evolution of the portable music devices; from boom boxes, cassette players, CDs, MP3 Players to present time of iPods. The transition from a bulky and heavy portable device to a much smaller and lighter machine could have been based on understanding the customer needs, economic change, sociological and demographic change, political/legal change or even changes in the market standard. Or the changes could have derived from any of the following other reasons; the original design of the boom box wasn’t robust enough that even the smallest of change such as adding a port for private listening; headphones, may have driven the price from an economical item to one of luxury. Furthermore, the inventor or mass producer of these portable devices...
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...in OM classes for a while. They are a successful, innovative firm whose competitive advantage really lies with their operations. The distinctive components of their operations (e.g., responsive production, excellent logistics) have been well documented. That has not kept The Economist from offering up a new article on the company which may not offer any great insight but has some interesting numbers (Global stretch, Mar 10). The secret of Zara’s success is its speed—four weeks for a new fashion idea to hit the shops—and the feedback that store managers send to head office, to help it fine-tune its ideas. There is also firm control from Spain, the sole logistics hub. Although 34% of Inditex’s manufacturing is outsourced to Asia, and 14% to parts of Europe including Turkey, those tend to be the more basic items. The high-fashion stuff, 49% of what it sells, is cut and finished in Spain though some sewing is done elsewhere. So this structure clearly makes sense. Long lead times and the concomitant inventories are more tolerable for basic T-shirts and such that will essentially always be carried. Labor savings from sourcing in Asia are likely more than enough to offset the added holding cost. That wouldn’t be true for products with more “fashion content” that may sell today but not tomorrow. Keeping that work in or near Spain shortens the lead time and avoid supply-demand mismatches. But how long will Zara be able to keep with this model? Particularly if the real growth opportunity...
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...Operation is a function that converts inputs into greater value of outputs to maximize the profit of organization. Operation management is defined as the process of constantly improving the system to make and deliver firm’s primary goods and services (Investopedia, 2010). Supply chain is the movement of materials, information and finances from supplier to end users. Hence, operations and supply chain management (OSCM) can be described as the design, operation and improvement of the system that manufacture and transfer the firm’s primary products and services to final users. Operations and supply chain management is a functional area of business with clear line management obligations (Scribd, 2015). The 1970s Manufacturing strategy In the...
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...Class 08 – Planning & Control BUFW M570-01W: Operations and Supply Chain Management Planning & Control: Chapter 19 – Sales & Operations Planning Chapter 20 – Inventory M anagement Learning Objectives Understand what sales and operations planning is and how it coordinates manufacturing, logistics, service, and marketing plans. Construct and evaluate aggregate plans that employ different strategies for meeting demand. Explain yield management and why it is an important strategy. Joseph Khamalah, Ph.D. 2 What Is Sales and Operations Planning? Sales and operations planning is a process that helps firms provide better customer service, lower inventory, shorten customer lead times, stabilize production rates, and give top management a handle on the business. The process consists of a series of meetings, finishing with a high-level meeting where key intermediate-term decisions are made. This must occur at an aggregate level and also at the detailed individual product level. – Major Sales & Operations Planning Activities Aggregate means at the level of major groups of products. 3 4 Sales & Operations Planning Activities – Overview Sales and operations planning was coined by companies to refer to aggregate planning. Types of Planning Long-range planning • Planning focusing on a horizon greater than 1 year, usually performed annually Intermediate-range planning • Planning focusing on a period from 3 to 18 months, time increments are weekly, monthly,...
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...Operations and Supply Chain Management concepts/tools Student’s Name University Affiliation Executive summary The paper has discussed the steps the B.F. Goodrich can use to ensure that they improve the decision making process that has been seen to be one of the disadvantages leading to the deterioration in the returns of the company. The paper has discussed he concept that can be followed by the company in solving the problem that they face and the paper puts across that the company can use the concept of aligning the demand planning across the supply chain. This has been seen to encourage focus of the company on the market demand and hence leading to the improvement of the market position. Background Information This report is based on B.F. Goodrich Corporation whose origin is based back to the time of Benjamin Franklin Goodrich who had followed an indirect route in the rubber industry. This is because he had pursued a course in medicine and education but later ventured into the business industry. B.F Goodrich had a tough experience during the periods when it was starting and the first product that it dealt with was products produced from cotton. From the early times of the company history there was a dedication to research and development in the rubber technology and always applied the earliest technology in the production of rubber tires. The products was diversified after the first world war due to the demands created at the time. B.F. Goodrich...
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...Yashashree Kulkarni Operations & Supply chain Mgmt Date; June 21 Critical and Creative Thinking in Operations And Supply Chain Management The reality of the 21st century is the presence of the VUCA environment that is , volatile, uncertain, complex and ambiguous. This highly dynamic business world, requires the business leaders to think both critically & creatively in order to be successful in their area of expertise. Leaders are expected to be operating at such rapid pace, in this high level of business environment that critical thinking coupled with an ability to be creatively inclined while implementing business decisions and problem solving is paramount to success. Even though critical thinking may seem like a “soft skill” from a distance, it is in fact, a key component for a leader to have, not a luxury but an essential quality. Criticality assesses; Creativity originates. This exemplifying interdependence between these qualities explores and requires the art of questioning critically like Socratic questioning. A leader who constantly questions the norms, to get to the bottom of things and implements the art of questioning questions in order to better reflect on problems is successful professionally.(Boghossian, P. (2006)). Operations and supply chain management is a field of business that requires this art of thinking critically and implementing creatively; these managers in operations are continuously cajoled to think “outside-the-box”; implicitly eschewing that the...
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...Commonalities and Differences between Service and Manufacturing Supply Chains: Combining Operations Management Studies with Supply Chain Management Ming Zhou • Taeho Park San Jose State University, San Jose, CA John Yi Saint Joseph's University, Philadelphia, PA The service sector of the US economy has been gaining importance. As the service sector evolves, the study of service supply chain starts to gain attention. In this study, we conduct an exploratory review on the studies of manufacturing and service supply chains. We focus on the studies that explore the differences and commonalities between manufacturing and service supply chains. We combine operations management literature with supply chain studies in order to provide an interdisciplinary framework that brings up both the operational and strategic views on the management commonalities and differences between the two types of supply chains. I. INTRODUCTION The study of services has lagged the study of manufacturing. When Fred Harvey proposed that services can be standardized and managed systematically, standardization and systematic management had been applied in the manufacturing sector by pioneers such as Eli Whitney and Frederick Taylor. The first business school course that focused on service management was not introduced until 1973 (Heineke and Davis, 2006). Despite the lag of academic attention, the service sector has been gaining importance as the US economy becomes more and more service-centric....
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...Material Management Proposal OPS/HC571 December 12, 2011 Christopher Kelley Material Management Proposal Material management department is typically responsible for directing the supply chain. Material management is an umbrella department that has many other functions (e.g., central store, laundry and linen operations, and sterile processing). The core purpose of material management is to direct and control the movements of goods in an efficient manner through a hospital system (Langabeer, 2008). This material management proposal document will elaborate on the role materials management plays within a hospital and the role of operations managers in this process. This document will further identify possible constraints a hospital may experience in its supply chain, the potential effects and justification on implementing a new collaborative planning process, and provide suggestions on how to manage a hospital supplied during a disaster. Role of Materials and Operations Management The role of materials and operations management plays within a hospital system is vital to the success of any health care organization. According to Langabeer (2008) material management controls significant resources and have total expenditures, or spending at 50% of a hospital budget. Materials management not only directs and controls the supply chain of a health care organization it is responsible for managing the flow of goods throughout the hospital and carry out supply and resource logistics...
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...San Jose State University SJSU ScholarWorks Faculty Publications Management School 1-1-2009 Commonalities and differences between service and manufacturing supply chains: Combining operations management studies with supply chain management Ming Zhou San Jose State University, ming.zhou@sjsu.edu J. Yi. Saint Joseph's University, Philadelphia, PA T. Park San Jose State University Follow this and additional works at: http://scholarworks.sjsu.edu/org_mgmt_pub Part of the Business Administration, Management, and Operations Commons, and the Organizational Behavior and Theory Commons Recommended Citation Ming Zhou, J. Yi., and T. Park. "Commonalities and differences between service and manufacturing supply chains: Combining operations management studies with supply chain management" California Journal of Operations Management (2009): 136-143. This Article is brought to you for free and open access by the Management School at SJSU ScholarWorks. It has been accepted for inclusion in Faculty Publications by an authorized administrator of SJSU ScholarWorks. For more information, please contact scholarworks@sjsu.edu. Commonalities and Differences between Service and Manufacturing Supply Chains: Combining Operations Management Studies with Supply Chain Management Ming Zhou • Taeho Park San Jose State University, San Jose, CA John Yi Saint Joseph's University, Philadelphia, PA The service sector of the US economy has been gaining importance...
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