Evaluation of Operations and Supply

Chain Management
Manufacturing strategy developed
Late 1970s
Just-in-time (JIT) production pioneered
Early 1980s by the Japanese
Mid 1980s Service quality and productivity
Total quality management (TQM) Early 1990s
and Quality certification programs Six-sigma quality
Mid 1990s Supply chain
Business process reengineering management (SCM)
Late 1990s
(BPR)
Electronic commerce
Early 2000s Service science

Mid 2010s
Business analytics
Key Issues for Operations Managers Today

Economic conditions
Innovating
Quality problems
Risk management
Competing in a global economy
 The Need for Supply Chain Management

In the past, organizations did little to manage the supply chain beyond
their own operations and immediate suppliers which led to numerous
problems:
Oscillating inventory levels
Inventory stockouts
Late deliveries
Quality problems

1-3
 Supply Chain Issues
1. The need to improve operations
2. Increasing levels of outsourcing
3. Increasing transportation costs
4. Competitive pressures
5. Increasing globalization
6. Increasing importance of e-business
7. The complexity of supply chains
8. The need to manage inventories

1-4
 3 Foundational Components
of Operations Management

Product Development

Process design
Supply Chain
& Management

11/17/2017 IIM K 5