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Operations Management and Supply Chain

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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 of sewing shirt. The downstream activities, or firms, are anything to the right of the company because these activities are positioned later in the supply chain. For example firms who take Pepsi’s product and move them along to the final consumers are positioned downstream. Quality, time, flexibly and cost are the four performance dimensions that have an enormous impact on business

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