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Unformatted text preview: Chapter 1—Operations and Supply Chain Management 19:53 What is Operations and Supply Management? Operations and Supply Chain Management(OSM)-the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services Functional field of business Concerned with the management of the entire system that produces a good or delivers a service Operations-refers to manufacturing ad service processes that are used to transform the resources employed by a firm into products desired by customers Manufacturing produces a physical product Service process produces an intangible product Supply-refers to supply chain processes that move information and material to and from the manufacturing and service processes of the firm Operations and Supply Processes Operations and supply processes categorized into: Planning-processes needed to operate an existing supply chain strategically Sourcing-involves the selection of suppliers that will deliver the goods and services needed to create the firm’s product Making-where the major product is produced or the service provided Delivering- also logistics processes; carriers are picked to move products to warehouses and customers, coordinate schedule and info of goods, develop warehouses, and run the information systems Returning-involves the processes for receiving worn-out, defective, and excess products back from customers and giving support to customers Differences between goods and services 1. Service is an intangible process that cannot be weighed or measured 2. Service requires some degree of interaction with the customer 3. Services are heterogeneous 4. Services are perishable and time dependent 5. Services are defined and evaluated as a package of features that affect the 5 senses; supporting facility, facilitating goods, explicit services, implicit services Servitization-refers to a company building service activities into its product offerings for its current users, that is, its installed base; include maintenance, spare part provisioning, training, and sometimes total systems design and R&D Efficiency, Effectiveness, and Value Efficiency-doing something at the lowest possible cost; using the smallest input of resources Effectiveness-doing the right things to create the most value for the company Value-quality divided by price Historical Development of Operations and Supply Management Lean Manufacturing, JIT, TQC—1980s Manufacturing Strategy Paradigm—1970s, 80s Service Quality and Productivity Total Quality Management and Quality Certification—late 80s ISO 9000 Certification Standards-created by the International Organization for...
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- Spring '09