Operation - Supply chain process priorities how SCM...

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Supply chain process priorities- how SCM operations are run over time Support product innovation and drive process innovation (interrelated) Innovation- both radical and incremental changes in process and products. Innovation is an important way to create new demand. Through the creation of new and improved products, firms can appeal to new market segments, or take business away from competitors. Response to emerging customer needs or create customer needs. Example is apple with combining existing technologies to make ipod. Flexibility- An operations ability to respond efficiently to changes in products, processes and competitive environments. Many types from short term labor flexibility to the ability to introduce products quickly in the long term. The specific methods chosen to improve flexibility should reflect how the firm competes. Flexibility is a means of coping with uncertainty. Enhancing flexibility requires cooperation of both inside and outside the firm. Sustainability and risk management- with sustainability the focus is on maintaining operations that are both profitable and non-damaging to society and the environment. Ex levis did life cycle of a pair of jeans to see impact. A primary focus of risk management is to build operations that anticipate and deal with problems resulting from natural events, social factors, economic issues, or technologic issues. Ex. Mattel recalled 9 million toys for fear of lead in paint. Sustainability and using green products can now be an order winner. Supply chain product priorities- customer’s problem to be “solved” …focus on outcomes customers experience directly. Quality- a products fitness for consumption in terms of meeting customers’ needs and desires. Assessment of how well customers’ expectations are met. Performance (superior attributes), features (unique attributes), conformance (no defects), reliability (long time to failure), durability (long useful life), aesthetics (appeal), service/support (intangibles), perceived quality (image). Order qualifier = minimum requirements.
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This note was uploaded on 10/21/2011 for the course SCM 303 taught by Professor Bixbycooper during the Spring '09 term at Michigan State University.

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Operation - Supply chain process priorities how SCM...

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