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Coyle Chapter 14 PowerPoint Slides

Coyle Chapter 14 PowerPoint Slides - Chapter 14...

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Chapter 14 Operations—Producing Goods and Services Learning Objectives After reading this chapter, you should be able to do the following: Discuss the strategic value-adding role operations plays in the supply chain. Explain the concept of a transformation process and its application to goods and services. Appreciate the tradeoffs and challenges involved in production operations. Understand the primary production strategies and types of planning. Discuss the primary assembly processes and production methods for goods creation. Describe the various production process layouts. Explain the role of productivity and quality metrics for improving operations performance. Know how information technology supports efficient production of goods and services.
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Introduction Operations focus on the “make/build” portion of the supply chain. Production facilities must interact with supply chain functions. Operations create the outputs that are distributed through supply chain networks.
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The Role of Production Operations in Supply Chain Management Manufacturing and service production supplies a economic utility called form utility. An effective production operation is supported by and also supports the supply chain. Supply chain tradeoffs must be understood and made.
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Production Process Functionality No two processes are organized exactly alike or perform to the same level. Process functionality helps the success of an organization. Assemble-to-order methods tend to be more complex, be more labor intensive, and require longer processing time than the mass- production-oriented, make-to-stock operations.
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Production Tradeoffs Processes that can produce a range of products are said to have economies of scope. Low-volume production runs of a wide variety of products are required to meet changing customer demand. Tradeoffs between production processes for goods and the costs involved in manufacturing them must also be understood. Production and supply chain costs vary for make-to-stock, assemble-to- order, and build-to-order products.
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Production Challenges Intensified competition, more demanding customers, and relentless pressure for efficiency as well as adaptability Competitive pressures for many established manufacturers and service providers Customers’ demand for choice and rapidly changing tastes
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Production Strategies In the era of mass production, operations strategy focused on reduction, efficiency, and scale.
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