SCM 2160 Lecture 1-4.pdf - SCM 2160 Supply Chain and...

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SCM 2160 Supply Chain and Operations Management Lecture 1: Strategic Operations Management Jan 25, 2020 Changmin Jiang 1
What Is Operations Management?
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What Is Supply Chain Management?
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What Is a Process? Process Activity or group of activities that transforms and adds value to one or more inputs, and generates one or more outputs for its customers Example: Furniture Manufacturing Primary Process Cutting or staining wood Non-Manufacturing Process Controlling Inventory Meeting due dates 4
Customers External customers Purchase firm’s products or services End users or intermediaries Manufacturers Wholesalers Retailers Internal customers One or more employees who use outputs from earlier, upstream processes to perform processes in the next office, shop or department 5
Processes & Operations 1-6 6
Nested Process Concept of a process within a process Processes can be broken down into subprocesses One person or department may be unable to perform all parts of the process Different segments of the process may require different skill sets Standardized processes may be possible Customized processes may be needed 7
Service & Manufacturing Processes Processes are classified as services or manufacturing depending on the primary output of the process Service processes pervade the business world and discussion of operations management Manufacturing processes produce and create the daily products we enjoy 8
Distinctions between Service and Manufacturing Processes 9
Supply Chain View Most services or goods are produced through a series of interrelated business activities. Each activity in a process should add value to the preceding activities Eliminate waste and unnecessary cost The concept of supply chains reinforces the link between processes and performance 10
Two Main Types of Processes in the Supply Chain Core Processes Set of activities that delivers value to external customers Examples: hotel’s reservation handling, a new car design for an auto manufacturer Support Process provides vital resources and inputs to the core processes Examples : accounting, budgeting, recruiting 11
Core Processes Four core process Supplier relationship process Order fulfillment process Customer relationship process New service or product development process 12

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