Chapter 1 slides

Chapter 1 slides - 1. Pervasiveness 1. 2. Interdependence...

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Unformatted text preview: 1. Pervasiveness 1. 2. Interdependence 3. Profitability and Survival Every organization must make a product or provide a service that someone values: or • • • • • Manufacturer. Manufacturer. Retailer. Retailer. Design firm. Design University. University. Health services. Health Most organizations function as part of a larger supply chain. supply Networks of manufacturers and service providers that work together to move goods from the raw material stage through to the end user. Linked through physical, information, and monetary flows. Organizations must carefully manage their manage operations and supply chains to prosper, and indeed, survive! indeed, Shoe manufacturer: Shoe • • • • How many shoes should we make? What mix? How What resources do we need? What will we outsource? What Location? Location? Key performance criteria -- Cost? Quality? Speed? Key The planning, scheduling, and control of the activities that transform inputs into finished goods and services. The collection of people, technology, and systems within a company ... … that has primary responsibility ... that … for providing the organization’s products or services. for Manufacturing operations Manufacturing Inputs Materials Materials People Equipment Intangible needs Information Outputs Service Operations Service Tangible goods Fulfilled requests Information Satisfied Customers • Tangible product. Tangible • Key decisions driven by physical characteristics of the product: product: How is the product made? How do we store it? How How do we move it? Etc. Etc. 1. Intangible “Product” or Service: 1. Intangible • Location, Storage, Physiological, Information. 2. Key decisions: • How much customer involvement? • How much customization? What IT solutions to make it all work together? Skills? Training? # of Employees? MIS Human Resources Budgeting. Analysis. Funds. Finance Marketing What products? What volumes? Costs? Quality? Delivery? Quality. Sustainability. Manufacturability. Design Accounting Performance measurement systems. Planning and control. Active management of supply chain activities Active and relationships to maximize customer value and achieve a sustainable competitive advantage. advantage. Upstream Downstream Second Tier Supplier First Tier Supplier Distributor Retailer Alcoa Alcoa Ball Corp Anheuser-Busch M&M Meijer Meijer Final Customers Transportation companies • • • • Length of the chain Length Complexity Complexity Stability Stability Physical, informational, and monetary flows Physical, • • • • • • • Industrial Revolution Scientific Management Human Relations Management Science Quality Revolution Globalization Information Age/Internet Revolution Industrial Revolution Industrial Steam engine Division of labor Interchangeable parts 1769 1776 1790 James Watt Adam Smith Eli Whitney Scientific Management Scientific Principles Time and motion studies Activity scheduling chart Moving assembly line 1911 1911 1912 1913 Frederick W. Taylor Frank & Lillian Gilbreth Henry Gant Henry Ford Human Relations Human Hawthorne studies Motivation theories 1930 1940s 1950s 1950s 1960s 1960s Elton Mayo Abraham Maslow Frederick Hertzberg Douglas McGregor Management Science Management Linear programming Digital computer Simulation, PERT/CPM, Simulation, Waiting line theory MRP 1947 1951 1950s 1960s George Dantzig Remington Rand Operations research groups Joseph Orlicky, IBM Quality Revolution Quality JIT TQM Strategy and operations Reengineering World Trade Organization 1970s 1980s 1990s 1990s Taiichi Ohno, Toyota W. Edwards Deming, Joseph Juran, et. al. Joseph Skinner, Hayes Hammer, Champy Numerous countries and companies and Globalization Globalization European Union and other trade agreements EDI 1970s 1980s IBM and others Internet, WWW, ERP Internet, Supply chain management, E-commerce 1990s ARPANET, Tim Berners-Lee, SAP, i2 Technologies, ORACLE, PeopleSoft, Amazon, Yahoo, eBay, Yahoo, and others. and 1. Electronic commerce 1. • Reduce the costs and time associated with supply Reduce chain relationships chain Fewer industries protected by geography 2. Increasing competition and globalization • 3. Relationship management • • Competition between chains, not individual firms Trust and coordination • • • • • • Physical Locational Exchange Physiological Psychological Informational (manufacturing) (transportation/warehouse) (retail) (health care) (entertainment) (communications) Finance/Accounting Production and Inventory data Capital budgeting requests Capacity expansion and Technology plans Orders for materials Production and delivery Schedules Quality Requirements Design/ Performance specs Material availability Quality data Delivery schedules Designs Budgets Cost analysis Capital investments Stockholder requirements Suppliers Operations Hiring/firing Training Legal requirements Union contract negotiations Product/Service Availability Lead-time estimates Status of order Delivery schedules Sales forecasts Customer orders Customer feedback Promotions Marketing Personnel needs Skill sets Performance evaluations Job design/work measurement Human Resources Business Consumer Business Business B2B Commerceone.com B2C Amazon.com Consumer C2B Priceline.com C2C eBay.com Customer Manufacturer Supplier Flow of information (customer order) Flow of product (order fulfillment) Country Country Sales Sales Company Total Total Nestlé Nokia Philips Bayer ABB SAP Exxon Mobil Royal Dutch/Shell IBM McDonald’s Foreign Foreign as % of as 98.2 97.6 94.0 89.8 87.2 80.0 79.6 73.3 62.7 61.5 of Origin Switzerland Finland Netherlands Germany Germany Germany United States Netherlands United States United States The degree to which a nation can produce goods and services that meet the test of international markets while simultaneously maintaining or expanding the real incomes of its citizens. its Output Productivity = Input Productivity improves when firms: • • • • Become more efficient Downsize Expand Achieve breakthroughs • • • • • • Productivity GDP (Gross domestic product) growth Market capitalization Technological infrastructure Quality of education Efficiency of government ...
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