OPM Study Guide .docx - OPM Study Guide: Chapter 1: Most...

OPM Study Guide:
Chapter 1:
Most important Operational performance measurement in business:
- Customer Service
- Cost
Conflicts in OPM:
- High inventory or very flexible capacity can often support high customer service
- High inventory or very flexible capacity can often cause higher cost however
Customer Service Measurements:
- % Complete orders shipped on the original promise date
- % Complete orders shipped on the customer requested date
- % Stocked orders shipping within 24 hours from receipt of order
- % Orders shipped complete
- % Retention of customers, year to year
- % Of sales returned to store or business
- Warrantee as a % of Sales
ERP (Enterprise Resource Planning):
- ERP is not just a computer system to manage a company
- ERP is a process of planning and execution involving integrated functions within the
business
- The ERP computer system is a tool to more easily accomplish the ERP system
integration
Operations and Supply Chain Processes
(Supply Chain Operations Reference SCOR Tools)
- Planning: processes needed to operate an existing supply chain strategically
- Sourcing: selection of suppliers that will deliver the goods and services needed to create
the firm’s product. A set of pricing, delivery, payments, and partner relationship metrics
needed
- Making: producing the major product or providing the service
- Delivering: logistics processes such as selecting carriers, coordinating the movement of
goods and information, and collecting payments from customers
- Returning: Processes for receiving worn-out defective, and excess products back from
customers (referred to as reverse logistics)
Supply Chain Flows:
Flows represent the direction and purposes of process sequences
Suppliers → Manufacturers → Wholesalers → Consumers
- Product Flows: materials can go in both directions (returns) ←→
- Monetary Flows: cash can go in both directions (returns) ←→
- Information Flows: technical data, ideas, schedules, communication ←