1. Operations Management and Supply Chain Management
OPERATIONS MANAGEMENT
Operations Management Fundamentals
Production Management describes all the activities managers
do to help companies create goods
Operations management (OM) is the management systems or
processes that convert or transforms resources into goods and
services
Transformation process is often referred to as the technical
core
Value-added is the term used to describe the difference
between the costs of inputs and the value of price outputs.
OM in Business
Typical OM Activities
Forecasting
Capacity planning
Scheduling
Managing Inventory
Assuring quality
Motivating and training employees
Locating facilities
Roles in OM
Strategic planning
2. o Focuses on long range planning
o Plant size, location, and type of process
Materials requirement planning (MRP) systems
o Uses sales forecast to make sure that needed
parts and materials are available at the right place
and time
Tactical Planning
o Focuses on producing goods and services
efficiently
o Emphasis on producing quality products
Global Inventory Management systems
o Provide the ability to locate, track, and predict the
movement of every component or material
everywhere
o Upstream or down stream
Operational planning and control (OP&C)
o deals with the day-to-day procedures for
performing work
o Scheduling, inventory, and process management
Inventory Management and Control Systems
o Provides control and visibility to the status of
individual items
o Maintains inventory record accuracy
o Current inventory
3. o Cost accounting
o Sales forecasts and customers orders
o Manufacturing capacity
o New product introductions
Transportation planning systems
o Track and analyze the movement of materials and
products
Distribution management systems
o Coordinate the process of transporting materials
from manufacture to distributor
Competitive OM Strategy
Cost
Quality
Delivery
Flexibility
Service
OM and the supply chain
Supply chain strategy
o Strategy for managing all the resources required
to meet customer demand for all products and
services
Supply chain partners
4. o Partners chosen to deliver finished products, raw
materials, and service
Supply chain operation
o The schedule for production activities
Supply chain logistics
o The product delivery processes and elements
SUPPLY CHAIN MANAGEMENT
Supply Chain Fundamentals
Materials flow from suppliers and their upstream suppliers at
all levels
Transformation of materials into semi finished and finished
products
Distribution of products to customers and their downstream
customers at all levels
Roles in the Supply Chain
Visibility
Ability to view all areas up ad down the supply chain
Bullwhip effect distorted information
Consumer Behavior
Competition
Supply chain planning systems
Supply chain execution systems