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

5.  Speed