...Business and Management Operations and Supply Chain Case Studies In: Business and Management Operations and Supply Chain Case Studies Operations and Supply Chain Case Studies In today’s environment of global shopping where the demand for products is as wide as the number of firms offering them, orders can be placed in advance or at a moment’s notice from across the globe. The question of the manufacturer or reseller is how to best manage production across the supply chain. This paper will have two parts to it; part one will review the case study of the Realco Breadmaster. It will provide analysis on the current supply chain management and will make recommendations for a more strategic approach. Part two will focus on a case study for Toyota. This case will focus on quality and the Lean philosophy. First, it is important to provide some foundation support of what operations and supply chain management entail. Every firm or organization must make a product or provide a service to someone that is needed or valued. Operations are the collection of people, technology, and systems that are in a firm whose primary responsibility is to provide the company’s products or services (Bozarth & Handfield, 2008). “Supply chain is the network of manufacturers and service providers that convert and move good from the raw materials state through to the end user” (Bozarth & Handfield, 2008, p.4). Planning and controlling operations and supply chains are critical to the...
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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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...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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...I believe that supply chain is the base of an operation strategy. The relationship between both is crucial to define limits in an overall strategy for the company and the link for this relation must be the reconciliation between our resources and the requirements of the market. All decisions made over operation strategy and supply chain would aloud scale economies or may open the scope over markets. For example, Benetton moves inventory to stores around the world faster than its competition by building flexibility into design, production, and distribution or, Sony that purchases components from suppliers in Thailand, Malaysia, and around the world. These examples lead to my next points. Under the concept of strategy’s four perspectives, there is an external and internal overview that permits framework for a deep analysis or SWOT, which will help to develop an effective strategy formulation. It is not easy to explain market movements but we can have in mind the flow of the strategy decision areas (resources, capabilities, processes) and performance objectives (customer needs, market positioning, competitors actions). In the other hand, top-down/bottom-up perspective give us a concept that clarify the link over a corporate strategy, tactical and operational experience. To understand this concept, I prefer to support my analysis on the five generic competitive performance objectives, that allow us to understand the necessity of being right (Quality), being fast (Speed), being on...
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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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...Operations and Supply Chain Case Studies In today’s environment of global shopping where the demand for products is as wide as the number of firms offering them, orders can be placed in advance or at a moment’s notice from across the globe. The question of the manufacturer or reseller is how to best manage production across the supply chain. This paper will have two parts to it; part one will review the case study of the Realco Breadmaster. It will provide analysis on the current supply chain management and will make recommendations for a more strategic approach. Part two will focus on a case study for Toyota. This case will focus on quality and the Lean philosophy. First, it is important to provide some foundation support of what operations and supply chain management entail. Every firm or organization must make a product or provide a service to someone that is needed or valued. Operations are the collection of people, technology, and systems that are in a firm whose primary responsibility is to provide the company’s products or services (Bozarth & Handfield, 2008). “Supply chain is the network of manufacturers and service providers that convert and move good from the raw materials state through to the end user” (Bozarth & Handfield, 2008, p.4). Planning and controlling operations and supply chains are critical to the strategic plan of an organization, and so is the coordination and communication with other functional areas of the firm’s supply chain partners....
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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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...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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...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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...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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...The supply chain’s significance in developing an operations strategy: To get an insight in what operations strategy is all about, it is defined as "a set of competitive priorities coupled with supply chain structural and infrastructural design choices intended to create capabilities that support a set of value propositions targeted to address the needs of critical customers." (Operations and Supply Chain Strategy, 2009). A supply chain consists of multiple organizations linked together in a partnership and their overall goal is to satisfy the needs of the end customer. As the lecture notes (n.d.) points out, operations manage the activities of the entire supply chain from start to end. Because of the operations management's nature of spanning across the functional level and being integrative, it is involved in many other strategic areas. (Operations and Supply Chain Strategy, 2009). This means that strategic decisions regarding operations must reflect and involve these areas. Increasingly fierce competition and challenges like fast changing market demands and needs, demand uncertainty and decreasing product life cycle means organizations have to do things differently to stay in the game. In today’s competitive environment there is a need to excel in multiple performance objectives like flexibility, speed, cost, dependability and quality (Slack and Lewis, 2011, p.16). To cope with these challenges, an integrated approach to the supply chain is required to create a competitive...
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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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...Homework 3 Product A We want to minimize the overall cost that is given by the sum of two factors: a fixed cost and a variable cost. If we increase the number of orders, we increase setup costs while decreasing holding costs. On the other hand, if we decrease the number of orders, we increase holding costs while reducing setup costs. Hence, there’s a trade off between these two expenses that reaches equilibrium when the setup costs meet the holding costs, as shown in the figure below. In order to find the optimal quantity that minimizes costs, we need to derive the following formula that represents the overall cost as a function of Q (c = 0): G(Q) = k* λ/Q + h*Q/2 If we derive this equation and we set it equal to zero we easily find that the optimal quantity is: Q*= (2*k* λ/h)1/2 Therefore plugging numbers into the formula we obtain: Q* = (2*400*2769/4)1/2 = 744,17. In this case the overall cost would be ! G(740,17) = (2*k* λ*h)1/2 = (2*400*2769*4)1/2 = 2976,7 ₪ However, we have a constraint that obliges us to order product A at batches of 50 units. Thus, we need to decide wether to order 750 units or 700 units, taking into consideration different increasing rates when moving towards the right or left side of the graph, which represents the total cost. The right side of the total cost graph has a lower slope than the left side so it can be presumably argued that a surplus in the optimal quantity would be preferred to a deficit. Additionally, the decrease in the optimal...
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...How significant is the supply chain becoming in the development of an operations strategy “A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customer (Ganeshan and Harrison, 1995) Supply functioned as the backbone of an organization to facilitate the programme/project implementation in an effective and efficient way. It also belongs to the functional level of the organization to provide “information on resources and capabilities” to support the management team in developing the operations strategy. (Quick MBA, 2010 Strategic management [Online]) As a supply person, I am going to take our internal financial and administrate management for Emergency SOP as an example to demonstrate that the supply chain collaboration will shape and influence the organization’s operational strategy in long run. Emergency response is one of our organization’s core commitments to provide essential supplies to the venerable children and women in emergency affected area, like clean water & sanitation supplies, essential health and nutrition aid, educational and sport kits ect… However it is hard for us to response in the after-emergency critical period due to the limitation of working with counterpart and rigid internal procurement process. After-emergency rehabilitation and development...
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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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