Chapter 1 Introduction Flashcards
the design, operations, and improvement of the systems that create and deliver the firms primary products and service
operations and supply chain managment (OSCM)
manufacturing and service processes used to transform the resources employed by a firm into products desired by customers
operations
the processes that move information and material to and from the manufacturing and service processes of the firm
supply chain
resources are planned in increasingly shorter increments of time to match supply inputs with the demand driven outputs of the firm
forecast of demand
understanding how different types of processes are organized, how to determine the capacity of a process, how long it should take a process to make a unit, etc
design of transformation process
one or more activities that transform inputs into outputs
process
- planning
- sourcing
- making
- delivering
- returning
5 categories of operations and supply chain processes
the processes needed to operate an existing supply chain strategically (firm must determine how anticipated demand will be met with available resources)
which operations and supply chain process is this ?
planning
the selection of suppliers that will deliver the goods and services needed to create the firms product (a set of pricing, delivery, and payment processes is needed, along with metrics for monitoring and improving relationships between partners of the firm)
which operations and supply chain process is this ?
sourcing
the major product is produced or the service provided
which operations and supply chain process is this ?
making
carriers are picked to move products to warehouses and customers, coordinate and schedule the movement of goods and information through the supply network, develop and operate a network of warehouses, and run the information systems that manage the receipt of orders from customers and invoicing systems that collect payments from customers
which operations and supply chain process is this ?
delivering (logistics processes)
processes for receiving worn-out, defective, and excess products from customers and support for customers who have problems with delivered products
which operations and supply chain process is this ?
returning
- Supporting facility (location, decoration, layout)
- Facilitating goods (variety, consistency, quantity of the physical goods that go with service)
- Explicit services (training of service personnel, consistency of service performance)
- Implicit services (attitude of the server, atmosphere, waiting time, status)
Examples of service specifications
- Businesses that impact human bodies (beauty salons, fitness centers, health clinics)
- Businesses that are directed at physical products (freight transportation, laundry, environmental landscaping)
- Businesses that are directed at peoples minds (advertising, education, arts and entertainment)
- Businesses directed at risk and money management (insurance, legal services, banking)
4 main categories of service businesses
What are the 4 categories of goods and services continuum
- Pure Goods - food products, chemicals, mining
- Core Goods - appliances, automobiles, data storage systems
- Core Services - hotels, airlines, internet service, providers
- Pure Services - university, medical, investment
food products, chemicals, mining
which category of the goods and services continuum is this
pure goods
appliances, automobiles, data storage systems
which category of the goods and services continuum is this
core goods
hotels, airlines, internet service, providers
which category of the goods and services continuum is this
core services
university, medical, investment
which category of the goods and services continuum is this
pure services
a company building service activities into its product offerings for its customers. (services include maintenance, spare part provisioning, training) (IBM)
product service bundling
examples of typical OSCM jobs
plant manager, hospital administrator, supply chain manager, purchasing manager
emphasized how manufacturing executives could use their factories capabilities as strategic competitive weapons
manufacturing strategy paradigm
an integrated set of activities designed to achieve high-volume production using minimal inventories of parts that arrive exactly when they are needed (Paired with TQC)
Just in time (JIT)
aggressively seeks to eliminate causes of production defects
Total quantity control (TQC)
to achieve high customer service with minimum levels of inventory investment
Lean manufacturing
the unique approach to quality and productivity pioneered by McDonalds, thinks about how to deliver high volume standardized service
Service quality and productivity
managing the entire organization so it excels in all dimensions of products and services important to the customer
Total quality management (TQM)
certification standards that play a role in setting quality standards for global manufacturers
ISO 9000
an approach to improving business processes that seeks to make revolutionary changes as opposed to evolutionary (small changes)
Business Process Reeingeneering
a statistical term to describe the quality goal of no more than 3.4 defects out of every million units (also referred to a quality improvement philosophy and program)
Six sigma
the ability to produce a unique product exactly to a Particular customers requirements
Mass customization
is to apply a total system approach to managing the flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer
the central idea of supply chain
the use of the internet as an essential element of business activity
Electronic commerce
the ability to meet current resource needs without compromising the ability of future generations to meet their needs
Sustainability
a business strategy that includes social, economic, and environmental criteria
Triple bottom line
the use of current business data to solve business problems using mathematical analysis
Business analytics
refers to the billions of devices that are connected to the internet
internet of things
- Disruptions in global supply chains
- Uncertainty in global tariffs and regulations
- Difficulty in hiring and keeping employees
- Adaptability to change in business technology and infrastructure
- Efficiency - doing something at the lowest possible cost
- Effectiveness - doing the things that will create the most value for the customer
- Value - the attractiveness of a product relative to its price
major challenges facing OSCM managers in the future
to managage the resources and capabilities of the firm.
role of operations
The collective resources, processes, and priorities of a firm form its capabilities. They
determine what a firm can and cannot do. They are sometimes considered the
operational “DNA” that enable (or limit) firms to address issues of performance,
resilience, innovation and growth
operational capabilities
informed by industry/market trends, this defines where to compete and how to win. it seeks advantage from a firms own unique strenghts called core competencies
corporate strategy
informed by corporate strategy, this is a framework guiding short and long term decisions within a firm. its intentions are communicated broadly to decision makers using competitive priorities
operations strategy
indicate what a firm intends to follow in order to compete while competitive capablitites deliver on those intentions
firm priorities
