Lecture Operations and supply chain management: The Core (3/e) – Chapter 1: Operations and supply chain management

The main goals of this chapter are to: Understand operations and supply chain processes and why it is important to study them, contrast the differences between services and goods producing processes, define efficient and effective operations, identify operations and supply chain management career opportunities, learn how the field has developed over time.

Operations and Supply Chain Management Chapter 01 McGraw­Hill/Irwin         Copyright © 2013 by The McGraw­Hill Companies, Inc. All rights reserved Learning Objectives Understand operations and supply chain processes and why it is important to study them Contrast the differences between services and goods producing processes Define efficient and effective operations Identify operations and supply chain management career opportunities Learn how the field has developed over time 1­2 Strategy, Processes, and Analytics  Operations and supply chain management involves        Product design Purchasing Manufacturing Service operations Logistics Distribution Success depends upon    Strategy Processes to deliver products and services Analytics to support the decisions needed to manage the firm 1­3 What is Operations and Supply Chain Management?   The design, operation, and improvement of the systems that create and delivery the firm’s primary products and services Operations and Supply Chain Management (OSCM) is   A functional field of business Concerned with the management of the entire production/delivery system 1­4 Operations and Supply Chain Processes 1­5 OS CM: The  Core  Organization 1­6 Process Activities      Planning –processes needed to operate an existing supply chain Sourcing – selection of suppliers that will deliver the goods and services needed to create the firm’s product Making – producing the major product or service Delivering – logistics processes such as selecting carriers, coordinating the movement of goods and information, and collecting payments from customers Returning – receiving worn-out, excess, and/or defective products back from customers 1­7 Goods versus Services 1­8 Efficiency, Effectiveness, and Value 1­9 Evaluating Efficiency  Comparison of firms is important to investors   From an operations and supply chain perspective, the relative cost of providing a good or service is closely related to earnings growth Management efficiency ratios  Labor productivity Net income per employee  Revenue (or sales) per employee   Asset productivity Receivables turnover ratio  Inventory turnover  Asset turnover  1­10 Careers in Operations and Supply Chain Management 1­11 Historical Development of Operations and Supply Chain Management Manufacturing strategy developed J ust-in-time (J IT) production Early pioneered by the J apanese 1980’s Mid 1980’s Service quality and productivity Late 1970’s Total Quality Management Early Six-Sigma (TQM) and Quality 1990’s Certification programs Mid 1990’s Quality Supply Chain Business Process Late 1990’s Management Reengineering (BPR) (SCM) Electronic commerce Business Analytics Early 2000’s Service Science Mid 2010’s 1­12 ... Operations and Supply Chain Management?   The design, operation, and improvement of the systems that create and delivery the firm’s primary products and services Operations and Supply Chain Management. .. Identify operations and supply chain management career opportunities Learn how the field has developed over time 1­2 Strategy, Processes, and Analytics  Operations and supply chain management. .. Understand operations and supply chain processes and why it is important to study them Contrast the differences between services and goods producing processes Define efficient and effective operations