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24 Cards in this Set
- Front
- Back
Operations & Supply Management
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the design, operation and improvement of the systems that create and deliver the firm's primary products and services.
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Producing a product or providing a service involves a complex series of transformation processes
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true
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Success in today's global markets require a business strategy that matches the preferences of customers with
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the realities imposed by complex supply networks
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In Supply Chain Management, the terms "OPERATIONS" and "SUPPLY" take on special meaning
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<b>Operations</b>:
Refers to manufacturing and service processes that are used to transform the resources employed by a firm into products desired by customers Ex. A MANUFACTURING process will produce some physical product like a car or computer A SERVICE process would produce and intangible product such as support/user experience |
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In Supply Chain Management, the terms "OPERATIONS" and "SUPPLY" take on special meaning
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<b>Supply</b>
refers to supply chain processes that move information and material to and from the manufacturing and service processes of the firm. These include: Logistics processes Storage processes Supply in this context refers to providing goods and service to plants and warehouses at the input end and also the supply of goods and service to the customer on the output end of the supply chain. |
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Supply & Demand Planning
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forecasting demand
making intermediate term plans for how demand will be met controlling different types of inventory detailed weekly scheduling of processes |
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Operations & Supply Processes can be conveniently categorized particularly from the view of a producer of consumer products/services
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planning
sourcing making delivering returning |
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Supply Chain Processes
Planning |
Planning:
consists of the <i>processes</i> needed to operate an existing supply chain strategically During planning a firm must determine HOW anticipated demand will be met with available resource constraints A major aspect of planning is developing a set of metrics to monitor the supply chain so that it is efficient nd delivers high quality value to customers |
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Sourcing
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Involves the selection of suppliers that will deliver the goods and services needed to create the firm's product.
A set of: -pricing -delivery -payment processes are needed together with metrics for monitoring and improving the relationships between partners of the firm. These processes include: -receiving shipment -verifying them -transferring them to manufacturing facilities -and authorizing supplier payment. |
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Making
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Where the major product is produced or the service is provided.
The step requires scheduling processesfor workers and the coordination of material and other critical resources such as equipment to support producing or providing the service. Metrics that measure speed, quality, and worker productivity are used to monitor these processes |
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Delivering
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also referred to as Logistics Processes
Carriers are picked to: move products to warehouses and customers coordinate and schedule the movement of goods and information through the supply network develop and operate a network of warehouses and run the information systems that manage the receipt of orders from customers and invoicing systems to collect payments from customers |
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Returning
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Involves the processes for receiving worn-out, defective, and excess products back from customers and support for customers who have problems with delivered products.
In the case of services this may involve all types of follow up activities that are requrired for after sales support |
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There are 5 essential differences between services and goods
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1. A service is an INTANGIBLE process that does not have physical dimensions.
This distinction has important business implications since a service innovation, unlike a product innovation, cannot be patented. As a result a company with an innovative service process must implement and scale it quickly before competitors follow suit. |
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[Delete] There are 5 essential differences between services and goods |
2. A service requires some degree of INTERACTION WITH THE CUSTOMER for it to be a service.
The interaction may be brief, bu it must exist for the service to be complete. Where face-to-face service is required the service facility must be designed to hangle the customer's presence. Goods on the other hand are generally produced in a facility separate from the customer--they can be made on a schedule that is convenient/efficient for the company. |
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3. Services are inherently HETEROGENOUS--they vary from day to day and even hour by hour as a function of the attitudes of the customer and the service providers.
Thus, even highly scripted work such as found in call centers can produce different outcomes. Goods on the other hand can be produced to tight specifications with 0 variability A defective good can simply be replaced and forgotten, but a service interaction can't necessarily. |
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4. Services as a process are PERISHABLE AND TIME DEPENDENT, and unlike goods, they can't be store.
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5. the specifications of a service are defined and evaluated as a PACKAGE OF FEATURES that affect the five senses.
These features are: Supporting Facility Facilitating goods Explicit services Implicit services |
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The Goods-Service Continuum
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Most any product offering is a combination of goods and services
Pure Service to Pure Goods Pure Goods industries have become low-margin commodity businesses and in order to differentiate are bundling services. |
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Servitization
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refers to when a company chooses to build service activities into its product offerings for its current users/installed user base
IBM is a good example--the hardware they provide is a part of the overall "solution" they provide to customers Servitization is not always the best strategy. While it may lead to higher revenues it will often decrease margins as the service activities don't generate enough revenue to significantly offset service costs |
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Goal of SC managers is to innovate and craft efficient and effective processes to produce high levels of value for customers and shareholders
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<b>Efficiency:</b>
Doing something at the lowest possible cost. The goal of an efficient process is to produce a good or provide a service by using the smallest input of resources. <b>Effectiveness:</b> means doing the right things to create the most value for the company. Often times maximizing efficiency and effectiveness will be at odds with eachother (e.g. customer service at a bank desk) <b>Value<b/>: metaphorically it equals quality/price. Goal of OSM is to increase Value for everyone in the Supply Chain |
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Value
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quality/price
competitive happiness is being able to increase quality and reduce price while maintaining or improving profit margins. This is a way that operations can DIRECTLY increase customer retention and gain market share |
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sustainability
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maintaining balance in a system
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Supply Chain Careers
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pg. 14
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Supply Chain Issues
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pg. 18
Coordinating the relationships btwn mutally supportive but separate organizations Optimizing global supplier, production, and distribution networks Managing customer touch points Raising senior management awareness of operations as a significant competitive weapon Sustainability & the TBL |