Supply chain practise

### Comprehensive Summary: Operations & Supply Chain Management (OSCM) in International Business

#### 1. Core Concepts

- Operationalisation: Defining abstract ideas (e.g., "quality") into measurable metrics (e.g., defect rates). Critical for data-driven decisions.

- Muda (NOT "Munda"): Japanese for "waste." Two key types:

- Type 1: Non-value-adding but necessary (e.g., safety checks). Minimize.

- Type 2: Pure waste (e.g., defects, overproduction). Eliminate first.

- Mura & Muri: Related Lean terms for unevenness and overburden.

#### 2. Quality Management

- Deming Cycle (PDCA): Plan → Do → Check → Act for continuous improvement.

- Costs of Quality:

- Prevention (training), Appraisal (inspections).

- Internal Failure (scrap, rework), External Failure (recalls).

- Quality Tools: Fishbone diagrams, Pareto charts, control charts.

#### 3. Process Efficiency

- Effective vs. Efficient:

- Effective: Meets goals (e.g., on-time delivery).

- Efficient: Minimal waste (e.g., low production cost).

- Business Process Mapping: Flowcharts to visualize workflows (e.g., order fulfillment).

#### 4. Lean & Continuous Improvement

- Gemba: Go to the source to observe processes.

- A3 Report: 1-page problem-solving template (Toyota’s method).

- 5S: Sort, Set in order, Shine, Standardize, Sustain (workplace organization).

#### 5. Decision-Making Models

- Rational vs. Bounded Rationality: Ideal logic vs. "good enough" decisions.

- Garbage Can Model: Chaotic, timing-dependent choices (e.g., crisis response).

- Z Model: Define → Analyze → Solve (structured problem-solving).

#### 6. Production Types

- Batch: Pilsner beer, pharmaceuticals (limited runs, recipe-based).

- Continuous: Oil refining, semiconductors (24/7, high volume).

- Job Shop: Custom products (e.g., aircraft).

#### 7. Global Supply Chain (SCM)

- Supplier Selection: Cost, quality, reliability, ethics.

- End-to-End Cycles:

- Procure-to-Pay (P2P): Ordering → Payment.

- Order-to-Cash (O2C): Customer order → Revenue.

- Black Box Model: Input → Process → Output (simplifies complex systems).

#### 8. Research in SCM

- Literature Review: Synthesizes existing knowledge to guide studies.

- Coding Methods:

- Open Coding: Tagging data themes.

- Axial Coding: Linking categories.

- Selective Coding: Core theory development.

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### Key Takeaways

1. Eliminate Type 2 Muda first (pure waste), then minimize Type 1 (necessary waste).

2. Quality = Prevention + Appraisal → Reduces failure costs.

3. Batch vs. Continuous Production: Choose based on volume/flexibility needs.

4. Lean = Gemba + A3 + 5S → Focus on real-world observation and simplicity.

Exam Tip: If you see "Munda," assume it’s a typo for Muda and answer accordingly!

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