SCM 2160 Chapter 1 Notes.pdf - 1 SCM 2160 Week 1 Textbook...

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1 SCM 2160 Week 1 Textbook Notes Mon May 10 + Wed May 12 Chapter 1 (pg. 1-23) Operations management Refers to the systematic design, direction, and control of processes that transform inputs into services and products for internal, as well as external, customers. Processes of multiple firms can be linked together to form a supply chain , which is the interconnected network of processes across different firms that produce a service or good to the satisfaction of customers. A firm can have multiple supply chains, which vary by the particular service or good being delivered to customers. Supply chain management is the synchronization of a firm’s processes with those of its suppliers and customers to match the flow of materials, services, and information with customer demand. A process Any activity or group of activities that takes one or more inputs, transforms and adds value, and generates one or more outputs for its customers. Processes can be broken down into subprocesses, which can in turn be broken down into still more subprocesses. We refer to this concept of a process within a process as a nested process . One part of a process can be separated from another for several reasons. One person or one department may be unable to do all parts of the process, or different segments in the process may require different skills. Service and manufacturing processes At a simple level, processes are often classified as services or manufacturing (i.e., goods) based on the primary output of the process. Service processes pervade the business world and have a prominent place in our discussion of operations management. Manufacturing processes are also important; without them, the products we that enjoy as part of our daily lives would not exist. In addition, manufacturing gives rise to service opportunities. Why do we distinguish between service and manufacturing processes? The answer lies at the heart of the design of competitive processes. 3 characteristics tend to differentiate goods-producing processes from service-producing processes. First, customers tend to be highly involved in the operations process for services, particularly those that are experience-based, such as an amusement park. Although tangible facilities might be

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