Ch. 1: Operations Management, Processes and Supply Chain

Operations Management

• The systematic design, direction and control of processes that transform inputs into services/products

• Internal and external

Process

• Activity or group of activities that takes 1+ inputs

• Tranforms into outputs for customers

Operation

Group of resources performing all of part of one or more processes

Supply Chain

Processes linked together

Manufacturing Process

• Physical durable output

• Inventory

• Low customer contact

• Captial intensive

• Quality is easily measured

Service Process

• Intangible and perishable output

• High customer contact

• Short response time

• Labour intensive

• Quality is not easily measured

Supply Chain Management

• The synchronization og a firm process with those suppliers and customers to match the flow of materials, services and info

• Matches customer demand

• : Low toilet paper from COVID

Operations Strategy

The means by which operations implements the firm’s corporate strategy and helps to build a customer-driven firm

Corporate Strategy

• Over direction that serves as framework for the org.

• : Core competencies, global strategies

Market Analysis

• Understand what customers want and how to provide it

• : Needs assessment

Competitive Priorities

• Critcal dimensions that a supply chain must have to satisfy customers

• Internal and external, present and future

Competitive Capabilities

Cost, quality, time and flexibility dimesons that a supply chian actually possess and is able to deliver

Ten Decision Areas for OM

1. Design of goods and services

2. Managing quality

3. Process and capacity design

4. Layout strategy

5. HR and job design

6. Supply chain management

7. Scheduling

8. Inventory

9. Maintence

10. Location strategy

Core Process

Set of activities that delivers value to external customers

Supplier Relationship Process

• Selects suppliers of services, materials and information

• Turns into timely and efficent flows into the firm

Order Fullfillment Process

• Includes the activities required to produce and deliver the service to the external customer

• : Distribution centres

Support Processes

• Provide vital resources and inputs to the core processes

• : Accounting, finance, marketing and HR

Measuring Productivity

Productivity+ Output/Input

Industry 4

• Fourth industrial revolution

• Automation of traditional manufacturing and industrial practices using modern smart tech.

• : Smart products

Manufacturing Execution Systems (MES)

• Computerized systems to track and document from raw material to final output

• Optimize production

Internet of Things (IOT)

• Interconnectivity of objects connected by software, sensors and actuators

• OM apps

Additive Manufacturing

• 3D objects that are built using layers

• AKA 3D printing