Learning Objectives
1. Operations and supply chain management (OSCM) Definition. 2. Transformation process. 3. Type of operations. 4. Services vs. goods. 5. Career opportunities in supply chain management. 6. Historical development of OSCM over time.
Operations Management is the management of systems or processes that create goods and/or provide services (STC, 2010)
OSCM is defined as the design, operation, and improvement of the systems that create and deliver the firms primary products and services (JCL, 2011)
Transformation Process
The operations function involves the conversion of inputs into outputs
Value added
Inputs:
Outputs:
Goods Services
Feedback
Control
Feedback Feedback
Types of Operations
Operations
Goods Producing
Examples
Farming, mining, construction, manufacturing, power generation Warehousing, trucking, mail service, moving, taxis, buses, hotels, airlines Retailing, wholesaling, financial advising, renting or leasing Films, radio and television, music concerts, recording Newspapers, radio and TV newscasts, telephone, satellites
Storage/Transportation
Success in todays global markets requires a business strategy that matches the preferences of customers with the realities of supply networks A sustainable strategy is critical Meets the needs of shareholders and employees Preserves the environment
Supply refers to processes that move information and material to and from the manufacturing and service processes of the firm
Surgery, teaching Song writing, software development Computer repair, restaurant meal Automobile repair, fast food Home remodeling, retail sales Automobile assembly, steel making
Servitization Strategies
Servitization refers to a company building service activities into its product offerings for its current users
Maintenance, spare parts, training, and so on
Success starts by drawing together the service aspects of the business under one roof Servitization may not be the best approach for all companies
Efficiency: Doing something at the lowest possible cost Effectiveness: Doing the right things to create the most value for the company Value: quality divided by price
Business process improvement analyst Quality control manager Lean improvement manager Project manager Production control analyst Facilities manager
Lean manufacturing, JIT, and TQC Manufacturing strategy paradigm Service quality and productivity Total quality management (TQM) and quality certifications Business process reengineering Six-sigma quality Supply chain management Electronic commerce Service science