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Introduction To Operations and Supply Chain Management
Introduction To Operations and Supply Chain Management
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Lecture Outline
What Operations and Supply Chain Managers Do Operations Function Evolution of Operations and Supply Chain Management Globalization and Competitiveness Operations Strategy and Organization of the Text Learning Objectives for This Course
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What is Operations?
a function or system that transforms inputs into outputs of greater value
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Transformation Process
Physical: as in manufacturing operations Locational: as in transportation or warehouse operations Exchange: as in retail operations Physiological: as in health care Psychological: as in entertainment Informational: as in communication
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TRANSFORMATION PROCESS
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Operations Function
Operations Marketing Finance and Accounting Human Resources Outside Suppliers
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Finance
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Division of labor
dividing a job into a series of small tasks each performed by a different worker
Interchangeable parts
standardization of parts initially as replacement parts; enabled mass production
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Mass production
high-volume production of a standardized product for a mass market
Lean production
adaptation of mass production that prizes quality and flexibility
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Events/Concepts
Steam engine Division of labor Interchangeable parts Principles of scientific management Time and motion studies Activity scheduling chart Moving assembly line
Dates
1769 1776 1790 1911 1911 1912 1913
Originator
James Watt Adam Smith Eli Whitney Frederick W. Taylor Frank and Lillian Gilbreth Henry Gantt Henry Ford
Scientific Management
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Events/Concepts
Hawthorne studies Motivation theories
Dates
1930 1940s 1950s 1960s 1947 1951 1950s
Originator
Elton Mayo Abraham Maslow Frederick Herzberg Douglas McGregor George Dantzig Remington Rand Operations research groups Joseph Orlicky, IBM and others
Operations Research
Linear programming Digital computer Simulation, waiting line theory, decision theory, PERT/CPM MRP, EDI, EFT, CIM
1960s, 1970s
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Events/Concepts
Dates Originator
ARPANET, Tim Berners-Lee SAP, i2 Technologies, ORACLE, Dell Amazon, Yahoo, eBay, Google, and others China, India, emerging economies
E-commerce
2000s
Globalization
1990s 2000s
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Events/Concepts
Global warming, An Inconvenient Truth, Kyoto
Dates Originator
Today Numerous scientists, statesmen and governments
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Globalization
Why go global?
favorable cost access to international markets response to changes in demand reliable sources of supply latest trends and technologies
Increased globalization
results from the Internet and falling trade barriers
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Hourly Compensation
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Productivity
ratio of output to input
Output
sales made, products produced, customers served, meals delivered, or calls answered
Input
labor hours, investment in equipment, material usage, or square footage
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Measures of Productivity
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Osborne Industries
Productivity Growth
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Strategy Formulation
1. Defining a primary task What is the firm in the business of doing? 2. Assessing core competencies What does the firm do better than anyone else? 3. Determining order winners and order qualifiers What qualifies an item to be considered for purchase? What wins the order? 4. Positioning the firm How will the firm compete? 5. Deploying the strategy
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Strategic Planning
Mission and Vision
Corporate Strategy
Marketing Strategy
Operations Strategy
Financial Strategy
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Source: Adapted from Nigel Slack, Stuart Chambers, Robert Johnston, and Alan Betts, Operations and Process Management, Prentice Hall, 2006, p. 47
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Lean production
providing low costs through disciplined operations
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Service organizations
always competed on speed (McDonalds, LensCrafters, and Federal Express)
Manufacturers
time-based competition: build-to-order production and efficient supply chains
Fashion industry
two-week design-to-rack lead time of Spanish retailer, Zara
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Policy Deployment
Policy deployment
translates corporate strategy into measurable objectives
Hoshins
action plans generated from the policy deployment process
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Policy Deployment
Balanced Scorecard
Balanced scorecard
measuring more than financial performance
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Balanced Scorecard
Radar Chart
Dashboard
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Operations Strategy
Services Products Human Resources Process and Technology
Capacity
Quality
Facilities
Sourcing
Operating Systems
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