ITM_309_Exam_Three_Review - ITM 309 Spring, 2011 Operations...

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ITM 309 Spring, 2011 Operations Management and Supply Chain Management – Chapter 8 Dell Case and Class Discussion 1. How has Dell used each of the five basic SCM components in its initial business model? a. Plan, source-reliable, high quality b. Just in time manufacturing c. Dell-Like Supply Chain i. Supply Chain starts with customer ii. Replace inventory with information iii. If you cannot measure it, you cannot manage it iv. Complexity slows you down v. Create a watershed mind-set 2. Dell’s influence a. Customer Behavior: Giving a greater selection b. Speed: Just in time c. Visibility: ability to get the product to the customer, and its impact on economics has changed the nature of competition, causing others to emulate this model d. Competition: Supple Chain planning software and SC execution both increase company’s ability to compete 3. Why did Dell change its initial business model and what changes did they make? a. One of the largest PC manufacturers b. Largest DIRECT PR manufacturer i. Sells directly to customers, bypassing retailers and passes on the savings c. Less inventory and faster deliveries than its competitors 4. What rules did Dell break? a. You cant customize every order for every customer, so offer pre- configured models that cant be changed b. Retailers recommend specific models to customers, so the channel cannot be bypassed
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Operations Management Fundamentals Transformation Process – the actual conversion of inputs to outputs Managers use IT to heavily influence Operations Management decisions including o What: What resources will be needed and in what amounts? o When: When should the work be scheduled? o Where: Where will the work be performed? o How: How will the work be done? o Who: Who will perform the work? Supply Chain Management (SCM): involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability Traditional PC Value Chain o Supplier -> Manufacturer -> Retailer -> Customer Direct PC Value Chain o Supplier -> Manufacturer -> Customer Skips retailer Business Models A conceptual framework that expresses the underlying economic logic and system that prove how a business can deliver value customers at an appropriate cost and make money Specifies what value to offer customers, and which customers to provide this value to using which products and services at what prices Specifies how the business will organize and operate Focuses attention on how all the essential components fit into a complete system SCM Components Organization must embrace technologies that can effectively manage supply chains o Plan: Strategic portion of SCM. A company must have a plan for managing all the resources that go toward meeting customer demand for products or services. A big piece of planning is developing a set of metrics to monitor the SC so that it is efficient, costs less, and delivers high quality o Source:
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This note was uploaded on 10/17/2011 for the course ITM 309 taught by Professor Rodammer during the Spring '08 term at Michigan State University.

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ITM_309_Exam_Three_Review - ITM 309 Spring, 2011 Operations...

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