This document discusses supply chain management and operations management. It provides definitions of supply chain management and operations management, and notes some key similarities and differences between the two. Some similarities include that they are interrelated, SCM is part of OM, and both aim to reduce costs and increase profits. Differences include that OM focuses on managing conversion processes within an organization while SCM focuses more broadly on managing flow of goods and services throughout the supply chain. The document also provides some references on the topics.
3. • Supply Chain Management
• Operation Management
• Difference between SCM and OM
• Similarity between SCM and OM
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4. Operation management is concerned with
management of conversion process
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5. It involves the active management of supply
chain activities within the organization
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8. • Interrelated to each other
• SCM is part of OM
• Both reduce cost and increase profit
• Use Manpower and Machines
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9. • Movement of Products
• Control on Activities
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10. • Boyer, K.K. & Verma, R. (2009). Operations &
Supply Chain Management for the 21st Century.
USA: Cengage Learning.
• Cousins, P.D., Lawson, B. & Squire, B. (2006).
Supply Chain Management Theory and Practice:
The Emergence of an Academic Discipline. USA:
Emerald Group Publishing.
• Jones, P. & Robinson, P. (2012). Operations
Management. UK: Oxford University Press.
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11. • Knapp (2012). Retrieved from
http://karlknapp.com/resources/management/op
erationsmanagement/teaching_topics/overview_
of_om.html
• Monczka, R.M., Handfield, R.B., Guinipero, L.C.
& Patterson, J.L. (2010). Purchasing and Supply
Chain Management. USA: Cengage Learning.
• Zhou, M., Park, T. & Yi, J. (2009). Retrieved from
http://www.csupom.org/domains/csuOM/PUBLI
CATIONS/2009/2009-16.pdf
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Editor's Notes
Operation Management and Supply Chain Management are the activities that are interrelated with each other. Supply Chain management is considered as the part of Operation Management. In this paper, theoretical framework of Supply Chain Management and Operation Management has been analyzed. Along with this, differences and similarities between both terms are also discussed in this paper.
Operation management is focused towards managing the process of converting inputs into the desired outputs. Production process includes the conversion of land, labor, capital and management inputs in the output of goods and services. Further, it has been analyzed that operation management also do proper management of activities such as manufacture, transport and supply. In order to perform the activities operation management use various tools such as PERT, CPM and TQM. All these tools are helpful in calculating the time required for the accomplishment of certain project (Jones & Robinson, 2012). Therefore, operation management is the important technique used for managing the activities in the organizations.
Supply Chain Management is basically the active management of supply chain activities in order to maximize the customer values. It is basically focused towards managing the inventory in the warehouse and also makes proper coordination between channels of distribution. With the help of supply chain management, organizations can be able to provide products and services to the customers on appropriate time (Boyer & Verma, 2009). It is necessary for every organization to adopt the proper supply chain management program in order to make available goods to every destination. Supply chain activities include the product development, sourcing, logistics and information system needed for the coordination of activities.
Both operation and supply chain management are similar in many activities such as forecasting, scheduling, managing inventories and location of facilities. It has been analyzed that both supply chain management and operation management is focused towards matching staff level and capacities with forecasted demands. After analyzing the staff capacities, organization can be able to make budget planning. Operation and supply chain management make schedules for the problems and for the delivery of products and services to the customers (Knapp, 2012). Supply chain management and operation management are focused towards activities that are related to management of inventory, so that organizations can give timely response to customers. Location of facilities should be nearest to the customers and should make the effective use of workers and equipment.
Apart from the similarities there are various differences between the supply chain management and operation management. Supply chain management is a process to manage external activities and distribution of products outside the company, whereas operation management is a tool to manage internal operations of the company. Supply chain management is getting involved in transferring the products and services from the factory to the companies.
On the other hand, operation management is focused using the raw material effectively within the factory. Supply Chain management includes planning, procurement and shipping of product and services. Operation management includes the activities such as manufacturing, packaging and warehousing the products and services appropriately (Zhou, Park & Yi, 2009). Operation management is focused towards providing quality products to the customers, whereas supply chain management does not assure the quality of products. Operation management includes the production of goods and services, whereas supply chain management includes the distribution of goods and services.
Operation management is the term, which is used to manage all the activities, decisions and responsibilities for the production and delivery of product and services. On the other hand, supply chain management is the activity that includes the management of entire supply chain from supplier of raw material to end customers. Both supply chain management and operation management are interrelated with each other. Supply Chain management is the part of operation management (Monczka, Handfield, Guinipero & Patterson, 2010). Both activities are focused towards erasing ineffectiveness in chain, reduce costs and increase profit. Further, both use manpower and machines for the manufacturing and supplying of goods products to the customers. Both make decisions for the supply of products and services to customers on appropriate time.
Apart from this, there are some other differences between the supply chain management and operation management. Supply chain management involves the movement and storage of raw materials and finished goods from point of origin to point of consumption. On the other hand, operation management is focused towards ensuring that all the business operations should make effective utilization of resources and meet the customer requirement (Cousins, Lawson & Squire, 2006). Operation management involves the designing and controlling of activities involved in the production of goods and services. Supply chain management do not focus towards controlling any activities, it basically involves timely supply of goods and services to the customers.