scm_ch03 - Supply Chain Management: From Vision to...

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Supply Chain Management: From Vision to Implementation Chapter 3: Process Thinking: Supply Chain Management’s Foundation
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2 Chapter 3: Learning Objectives 1. Identify and describe the challenges created by functional thinking. 1. Discuss the anatomy of a typical process. Describe the flows that comprise a process.
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3 Chapter 3: Learning Objectives 1. Explain the role of system’s thinking in process design and management. Discuss the requirements and impediments to system’s analysis. 1. Describe the company as a series of interactive decisions made across functional boundaries and resources types.
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4 Chapter 3: Learning Objectives 1. Explain process reengineering, describing how it can be used to design world-class processes.
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5 Process Management It’s a shift from competing on what we make to how we make it. - David Robinson, President CSC Index on the need for process thinking Functional thinking limits cooperation and impedes creative thinking. Process management promotes collaboration, facilitating customer satisfaction at low cost.
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6 Process Management Process Management requires companies to: 1. Recognize the limiting nature of functional structures 2. Instill process thinking throughout the company Process integration remains rare Michael Hammer estimates less than 10% of companies have made a serious and successful effort Requires major changes to measurement, job design, management roles, and organizational structure
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7 Functional Organization Groups resources into specific departments which perform specific tasks to help the company achieve desired goals. Research and Development - translates customer needs into tangible products. The goal is to design appealing, easy-to-make products with shorter concept-to- market lead times. Purchasing acquires the right materials at the right price for use in operations. Sourcing’s goal is to select the right suppliers and then build the right relationships with them. Production transforms inputs into a more highly valued and desirable product or service. The goal: to use capital, energy, knowledge, and labor are used to build processes that make low-cost, high-quality goods. Logistics moves and stores goods so they are available for use in operations or for sale to customers. Logistics seeks to leverage critical activities like transportation, warehousing, and order processing to make sure materials and products are where they need to be when they need to be at the lowest cost. Marketing identifies customer needs and communicates to the customer how the company can meet those needs. Marketing’s objective is to perform a liaison role between the company and its customers.
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8 ( Dys )Functional Behavior Functional structures result in a failure to see beyond the department level to the end user. Decisions are made to achieve local,
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This note was uploaded on 01/13/2011 for the course IT 230 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.

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scm_ch03 - Supply Chain Management: From Vision to...

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