Supply chain
CH1
Planning – processes needed to operate an existing supply chain strategically.
Sourcing – selection of suppliers that will deliver the goods and services needed to create the firm’s product. A set of pricing, delivery, payments, and partner relationship metrics needed.
Making – producing the major product or providing the service.
Delivering – logistics processes such as selecting carriers, coordinating the movement of goods and information, and collecting payments from customers.
Returning – processes for receiving worn-out, defective, and excess products back from customers.
Product - Service Bundling
Refers to a company building service activities into its
product offerings.
Many firms offer a combination of goods and services.
Products are supported by services such as warranties and training.
Services are enhanced through the inclusion of products.
Evaluating Efficiency
Benchmarking – a process in which one company studies
the processes of another company to identify best practices.
Benchmarking is important to investors.
From an operations and supply chain perspective, the relative cost of providing a good or service is closely related to earnings growth.
A small percentage reduction in materials could lead to a large increase in R O I.
Current Issues in OSCM
Adapting to rapidly changing global business relationships
Rebalancing the trade balance between low-cost producing Asian economies and Developed economies which would also reduce supply risk.
Accommodating the shift to online retail purchasing
This is a significant change requiring reconfiguration of stores and warehouses.
CH 2
Sustainability – the ability to meet current resource needs without compromising
the ability of future generations to meet their needs.
The firm’s strategy describes how it will create and sustain value for its current shareholders.
Shareholders – individuals or companies that legally own one or more shares of stock in the company.
Stakeholders – individuals or organizations who are directly or indirectly influenced by the actions of the firm.
Triple Bottom Line (People, planet, profit)
Management must decide which parameters of performance are critical and concentrate resources on those characteristics.
An operation cannot simultaneously excel on all competitive dimensions.
For example, a firm that is focused on low-cost production may not be capable of quickly introducing new products.
A strategic position is not sustainable unless there are compromises with other positions.
Straddling – seeking to match a successful competitor by adding features, services, or technology to existing activities. Often a risky strategy.
CH 3
Decoupling points occur when inventory is positioned in the supply chain to allow processes or entities to operate independently.
Basic types of forecasts:
Qualitative.
Quantitative.
Time series analysis (primary focus of this chapter).
Causal relationships.
Simulation
Forecasting
Simple Moving Average
Weighed Moving Average
Exponential Smoothing
Measures of Error: MAD and MAPE
CH4
Capacity – the ability to hold, receive, store, or accommodate.
In business, it is viewed as the amount of output that a system is capable of achieving over a specific period of time.
In services, the output is often the number of customers that can be served per unit time (ability to serve, not the actual number served).
In manufacturing, the output may be the number of units that can be produced per unit time (ability to produce, not the actual number produced).
Long range.
Greater than one year.
Intermediate range.
Monthly or quarterly plans covering the next six to eighteen months.
Short range.
Less than one month.
CH5
Pure Project
A self-contained team works full time on the project.
Functional Project
Responsibility for the project lies within one functional division of the firm. Employees from that division work on the project, usually only part time.
Matrix Project
A blend of pure and functional project structures – people from different functional areas work on the project, possibly only part time.
A project starts as a statement of work (S O W).
A written description of the objectives to be achieved..
Brief statement of work to be done.
Proposed schedule
Task – a further subdivision of a project – usually not longer than several months and performed by a single group or organization.
Work Package – a group of activities combined to be assignable to a single organizational unit.
Project Milestone - specific events in the life of the project to be reached at points in time.
Work Breakdown Structure (W B S) - defines the hierarchy of project tasks, subtasks, and work packages.
Activities – defined within the context of the work breakdown and are pieces of work that consume time.
Earned Value Management (E V M)
A technique for measuring project progress in an objective manner.
Has the ability to combine measurements of scope, schedule, and cost in a project.
Provides a method for evaluating the relative success of a project at a point in time.
Project Crashing