OMIS 2010 - Week 1: Introdution & Supply Chain

What is OM?

|:| operations management

system design & operation & improvement → product / inventory / equipment / service

What is operations?

plan / coordinate / control resource function

What is a transformation process?

value chain activity series

What are some input examples?

• HR

• info

• tech

• material

• facility & process

/

• building

• info

• labour

• machine

• material

What is the input-transformation-output process?

value added = input — conversion — feedback → control → output → feedback

What are the transformation processes?

• physical

• locational

• exchange

• physiological

• psychological

• informational

What is physiological transformation?

healthcare process

What is psychological transformation?

entertainment process

What is value added?

output & input net value increase

What is operation strategy?

• accomplish mission

• provide direction

• unite organization

• provide consistency

→ provide long-range producing plan

What is the strategy formulation process?

1. define primary task

2. assess core competency

3. determine order winner / order qualifier

4. position firm

5. deploy strategy

• tool

  • Hoshin

  • balanced scorecard

What are the business strategic planning types?

• marketing

• operations

• finance

What are the integrated operation strategy types?

• product

• service

• process & tech

• capacity

• HR

• quality

• facility

• source

• system

What are the firm positioning competitive priorities?

• cost

• speed

• quality

• flexibility

• innovation

What are the competing cost opportunities?

• limited standard product

• lean production / waste elimination

• automation / training investment

• low cost ≠ low quality

• efficiency >

What are the competing speed opportunities?

• rapid delivery

• internet

• service on demand

• build-to-order

What are the competing quality opportunities?

• error-free product

• meet / exceed customer requirement

• empower employee

• high-performance design

• consistency

What are the competing flexibility opportunities?

• product flexibility

• volume flexibility

• mass customization

What is product flexibility?

offer wide goods / services

• easily customize to meet customer requirement

What is volume flexibility?

increase / decrease production

• easily add / drop to meet market demand

What is mass customization?

mass customized part production

What is Hoshin?

// hoshin planning // policy deployment // hoshin kanri // shining metal pointing direction // compass

corporate strategy → measurable objective

What is balanced scorecard?

finance / customer / process / learn & grow measure

• KPI

What is operations design?

competitive property focus

• structure

• infrastructure

What are some operations design structure examples?

• facility

• flow

• tech

What are some operations design infrastructure examples?

• plan / control

• worker

• pay

• quality

What are the tech application types?

• product tech

• process tech

• info tech

What is SCM?

|:| supply chain management

material management → reduce cost / increase responsiveness

What is the supply chain?

// value chain // dem

facility / function / activity / info process group flow → source / make / deliver product

What is a typical goods-producing supply chain structure?

supplier → manufacturing plant → regional warehouse → retail store → customer

• distribution centre

• inventory

What are some strategic decision examples?

• single / multiple source

• major customers

• buy / sell for single / multiple period

• buy / sell to same supplier / customer

• price / volume negotiation position

What is the most diverse business function?

operations

What is the bullwhip effect?

unexpected supply chain distortion by repetitive demand variation

customer → retailer →→ distributor →→→ manufacturer →→→→ supplier

What explains why the bullwhip effect is a problem?

• inventory distraction

• quality control problem

• diminished customer service

• increased material / manpower cost

What are some major bullwhip effect cause examples?

• price fluctuating

• order batching

• shortage gaming

• inaccurate forecasting

What are some major bullwhip effect countermeasure examples?

• everyday pricing

• frequent ordering

• history forecasting

• info sharing

What are the primary functional areas?

• marketing

• finance

• operations

• HR

What is the firm hub?

operations

← …

• finance

• marketing

• HR

• supplier

What is craft production?

handcraft individual product / service process

What is the primary production factor?

machine

What is division of labour?

job separation → small task series

What is an interchangeable part?

part standardization

What is scientific management?

systematic work analysis

What is mass production?

high standard product production

What are the historical OM events?

1. industrial revolution

2. scientific management

3. human relations

4. operations research

5. quality revolution

6. internet revolution

7. globalization

8. sustainability

9. digital revolution

What is lean production?

mass production adaptation prizing quality / flexibility

What is resilience?

adaptability

What is related to sustainability?

resilience

What forms can globalization take on?

• sell in foreign market

• produce in foreign land

• purchase from foreign supplier

• partner with foreign firm

What explains why companies go global?

• favourable cost

• international market

• demand response

• reliable source

• latest tech

What paved globalization’s way?

• falling trade barrier

• internet

What did the WTO do for globalization?

• open protected industries

  • agriculture

  • textile

  • telecommunication

• extend trade rules

  • good / service

What has proliferated because of globalization?

• strategic alliance

• joint venture

• licensing agreement

• research consortium

• supplier partnership

• direct marketing agreement

What are some examples of factors in outsourcing production to other countries?

• labour cost

• GDP

• output

What is strategy?

mission plan

What is the strategic planning process?

mission & vision / customer & business voice → corporate strategy → marketing & operations & finance strategy

What is a primary task?

purpose

What usually expresses a primary task?

mission statement

What is a core competency?

// distinctive competence

what firm does better

What is a core rigidity?

core competency that doesn’t evolve

What is an order qualifier?

required product / service characteristic to be considered for order

What is an order winner?

product / service characteristic to win order

What is positioning?

way firm competes

What is speed?

fast move / adaptation & tight linkage

What is quality?

way to please customer

What is flexibility?

adjust product mix / volume / design

What are the competing innovation opportunities?

• take risk

• challenge status quo

• accept fail

• celebrate success

What is a Hoshin?

process action plan

What is a KPI?

|:| key performance indicator

performance measure

What are some balanced scorecard visual examples?

• radar chart

• dashboard

What is the 0% - 40% achieved goal zone in a radar chart balanced scorecard?

red danger zone

What is the 40% - 60% achieved goal zone in a radar chart balanced scorecard?

yellow cautionary zone

What is the 60% - 100% achieved goal zone in a radar chart balanced scorecard?

green moving ahead zone

What is a radar chart balanced scorecard?

What is the 0% - 25% achieved goal zone in a dashboard balanced scorecard?

red zone

What is the 25% - 75% achieved goal zone in a dashboard balanced scorecard?

yellow zone

What is the 75% - 100% achieved goal zone in a dashboard balanced scorecard?

green zone

What is a dashboard balanced scorecard?

What became the strategic means for companies to manage quality, satisfy customers, & remain competitive?

• globalization

• infotech evolution

What are the upstream supply chain members?

• supplier

What are the downstream supply chain members?

• distributor

• warehouse

• customer

What are the supplier tiers?

• Tier 3

→

• Tier 2

→

• Tier 1

What are the supply chain processes?

• procurement

• production

• distribution

What is procurement?

good / service purchase

What is the service supply chain focus?

• HR

• support

• more compact / less extended than manufacturing supply chain

What is a value chain’s focus?

max user value

What are the demand-driven value chain’s areas?

• supply management

• demand management

• product management

What does a demand-driven value chain create?

value for all supply chain parts

What are the demand-driven value chain key features?

operation / innovation … excellence

What is value?

• good quality

• fair price

• fast / accurate delivery

What are some examples of factors that contribute to uncertainty?

• lateness

• incomplete order

>

• inaccurate demand forecast

• long variable lead order time

• product change

• batch & inflated order

• price fluctuation

What is inventory?

supply chain uncertainty insurance

What can the bullwhip effect result in?

• high buffer inventory & cost

• poor customer service

• missed production schedule

• wrong capacity plan

• inefficient shipping

What creates the bullwhip effect?

• self-interest order

• inaccurate demand info

What defines a lean supply chain?

little redundancy / slack / inventory

What does the ISO require organizations to determine?

quality management system

• risk identification & action

What are some examples of building supply chain resilience?

• identify & monitor disruption in advance

• develop contingency

What is risk pooling?

aggregate risk to reduce impact

What are some risk pooling examples?

combine inventories at risk in risk-free environment

• reduce inventory investment → reduce demand variability

• build risk tradeoff to include fewer offering / part → few product variability

• create flexible capacity → reduce customer uncertainty

What is a common sustainability perception among corporations?

requiring developing suppliers ≠ feasible

• ≠ governmental / cultural / social pressure