SCML 200 - Supply Chain Management & Operations Chapter 1 PDF

SCML 200 - Supply Chain Management & Operations Chapter 1 1 Strategy, Processes, and Analytics Manufacturing Service...

SCML 200 - Supply Chain Management & Operations Chapter 1 1 Strategy, Processes, and Analytics Manufacturing Service Operations Operations and supply chain management involves Product design Logistics: Logistics: Purchasing Transportation Warehousing Manufacturing Service operations Logistics Distribution Distribution Success depends upon Strategy Processes to deliver products and services Analytics to support the decisions needed to manage the firm 2 What is Operations and Supply Chain Management? Operations and Supply Chain Manufacturing Management (OSCM) is the design, operation, and improvement of the systems that create and deliver the firm’s primary products and service. Logistics: Warehousing It is: A functional field of business Concerned with the management of the Logistics: entire production/delivery system Transportation 3 Operations and Supply Chain Processes Operatio Supply ns Chain Manufacturing Processes that and service move processes used to information and transform material to and resources into from the firm products/services 4 SCM Terminology Retailer Customer: A customer is an individual or business that purchases the goods or services produced by a business and has the ability to choose between different products and suppliers Retailer: A business or person that sells goods to the consumer Service Goods Supplier Supplier Supplier/Vendor: A party that supplies goods or services. Also called vendor Distributor: An agent who supplies goods to retailers Logistics: The general management of how resources Distributor are acquired, stored and transported to their final destination Warehouse/Distribution Centre: A commercial building used to receive goods, store them for a period of time then ship them to their destination 5 6 SCOR - Supply Chain Operations Reference Model Source: http://apics.org 7 SCOR - Process Activities Planning – processes needed to operate an existing supply chain Sourcing – selection of suppliers that will deliver the goods and services needed to create the firm’s product Making – producing the major product or service Delivering – logistics processes such as selecting carriers, coordinating the movement of goods and information, and collecting payments from customers Returning – receiving worn-out, excess, and/or defective products back from customers Enable – processes that enable other processes 8 Goods versus Services Go Ser od vic s es Pure Goods Core Goods Core Services Pure Services * Intangible * Tangible * Interaction with customer required * Less interaction with customers * Inherently heterogeneous * Often homogeneous * Perishable/time dependent * Not perishable – can be inventoried * Defined and evaluated as a package of features 9 The Goods-Services Continuum 10 Efficiency, Effectiveness, and Value Efficiency Doing something at the lowest possible cost Effectiveness Doing the right things to create the most value for your customer Value The attractiveness of a product relative to its cost 11 Careers in Operations and Supply Chain Management Plant Supply chain Purchasing manager manager manager Business Quality Lean process control improvement improvement manager manager analyst Chief Project Facilities operating manager manager officer 12 Key Terms 13 14