Chapter 1 - Operations and Supply Chain Strategy (1) - Operations and Supply Chain Strategy Ram Govindu Ph.D College of Business University of South

Chapter 1 - Operations and Supply Chain Strategy (1) -...

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Operations and Supply Chain Strategy College of Business University of South Florida Sarasota-Manatee Ram Govindu, Ph.D.
Learning Objectives 1. Discuss the importance of operations/supply chain management 2. Describe the history and development of three exemplary organizations 3. Explain how single organizations can follow different competitive strategies to be successful 4. Illustrate the differences and similarities between manufacturing and service activities 5. Characterize supply chain strategy within a single organization and across multiple organizations 2
Business Decisions – Examples What to make/provide? What features/options should be included? Where to make/provide? How to produce/provide? How should products/services be delivered? Profit = Revenue – Cost How much profit do we want to make? How much is the customer willing to pay? How much/how many to make/provide? How much will it cost to make? 3
What is Operations Management?
What do Operations consist of? The processes that effectively produce, transform, and deliver products or services INPUTS Human labor Materials and parts Energy (gas, electricity, coal) Machinery/equipment TRANSFORMATION Manufacturing Assembly Location change Exchange (retail) Storage (distribution center) OUTPUTS Finished product Service interaction with customer Increased knowledge or satisfaction 5
What is Operations Management? Operations Management deals with the design and management of products, processes, services and supply chains OM considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their clients want OM related issues range from strategic to tactical and operational levels Source: http:// mitsloan.mit.edu/omg/om-definition.php 6
Operations Management – Strategic and Tactical Issues Representative strategic issues include: determining the size and location of manufacturing plants deciding the structure of service or telecommunications networks designing technology supply chains Representative tactical issues include: plant layout and structure project management equipment selection and replacement Source: http:// mitsloan.mit.edu/omg/om-definition.php 7
Operations Management – Operational Issues Representative Operational issues include: Production/Service scheduling and control Inventory management Quality control and inspection Logistics and materials handling Equipment maintenance policies Source: http:// mitsloan.mit.edu/omg/om-definition.php 8
Supply Chain Management The organization and management of supply chain activities Maximize customer value Maximize competitive advantage 9
Supply Chain Network – An Example Source: Andreas Wieland , Supply Chain Management Research - Wieland, Andreas; Wallenburg, Carl Marcus (2011): Supply-Chain-Management in stürmischen Zeiten. Berlin, p. 8 10
What is Supply Chain Management?

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