Professional Documents
Culture Documents
OPERATIONS
IN GLOBAL SUPPLY CHAINS
Global supply chain management
2
Operations function
3
OM is responsible for planning, organizing, and managing all the resources needed
to produce a company’s goods and services. This includes people, equipment,
technology, materials, and information.
Source: Nada R. Sanders (2012), Supply chain management – a global perspective, John Wiley & Sons Publisher, printed in
USA.
Transformation role of OM
4
Source: Nada R. Sanders (2012), Supply chain management – a global perspective, John Wiley & Sons Publisher, printed in
USA.
Source: Nada R. Sanders (2012), Supply chain management – a global perspective, John Wiley & Sons Publisher, printed in
USA.
Global operations management
6
Jacobs & Chase (2011). Operations and supply chain management. McGraw-Hill Irwin, USA.
10 Operations processes
Product design
Product manufacturing
Production process
11
12 Product design
Product Design
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(1) Product development process
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Process type Description Distinct features Examples
Generic Begin with a market opportunity Process generally includes distinct planning, Sporting goods,
(market-pull and selects appropriate concept development, system-level design, detail furniture, tools
products) technologies to meet customer design, testing and refinement, and production
needs ramp-up phases
Technology-push Begin with a new technology, then Planning phase involves matching technology and Gore-tex rainwear,
products finds an appropriate market market; concept development assumes a given Tyvek envelopes
technology
Platform products Assume that the new product will Concept development assumes a proven Consumer
be built around an estimated technology platform electronics,
technological subsystem computers, printers
Proces-intensive Characteristics of the product are Either an existing production process must be Snack foods,
products highly constrained by the specified from the start or both product and chemicals,
production process process must be developed together from the start semiconductors
Customized New products are slight variations Similarity of projects allows for a streamlined and Motors, switches,
products of existing configurations highly structured development process batteries, containers
High-risk products Technical or market uncertainties Risks are identified early and tracked throughout Pharmaceuticals,
create high risks of failure the process space systems
Analysis and testing activities take place as early
as possible
Quick-build Rapid modeling and prototyping Detail design and testing phases are repeated a Software, cellular
products enables many design-build-test number of times until the product is completed phones
cycles ore time/budget runs out
Complex systems System must be decomposed into Subsystems and components are developed by Airplanes, jet
several subsystems and many many teams working in parallel, followed by engines, automobiles
components system integration and validation
(2) Economic analysis of product development projects
5. Development cost
2. Ramp-up cost
3. Marketing and support cost
4. Production cost
5. Sales revenue
(2) Economic analysis: Case
17
Performance
dimension Measures Impact on competitiveness
Outputs
Pr oductivity
Inputs
Examples of Productivity measurement
23
Partial measure
Output Output Output Output
Labor Capital Materials Energy
Multifactor measure
Output Output
Labor Capital Energy Labor Capital Materials
Total measure
Outputs Goods & Services _ produced
Inputs All _ resouces _ used
Examples of Productivity measurement
Input
24 & Output production data ($) Productivity measure examples
Total measure
Output
1. Finished unit $10,000 Total _ output 13,500
0.89
2. Work in process $2,500 Total _ input 15,193
3. Dividends $1,000
Multifactor measure
4. Bonds
5. Other income Total _ output 13,500
4.28
Total output $13,500 Human Material 3,153
Income per
employee $40,000 $8,000 $10,000 $8,000 $15,000
Revenue per
employee $663,000 $535,000 $597,000 $510,000 $568,000
Receivables
turnover 4.0 1.5 1.0 2.2 2.1
Inventory
turnover 12.0 11.5 11.7 5.9 `11.0
Asset
turnover 0.8 0.6 0.4 0.8 0.8
28 Product manufacturing
Product Manufacturing
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(1) Capacity planning
30
Demand
Considerations in forecast
Capacity level
changing capacity (Infrequent expansion)
Capacity level
Determning (Frequent expansion)
capacity Volume
requirements
Small
Large chunk
Evaluate capacity chunk
alternatives
Years
(2) Job management
31
(3) Production Process
32
Low
Project
Work center
Product
standardization Manufacturing
cell
Assembly
line
Continuous
process
High
1. Project layout
2. Workcenter
3. Manufacturing cell
4. Assembly line
Types of facility layout
34
Fixed Position Layout
35
Best suited when producing many different types of products in low volume
Product layout
38
1. Six-sigma Quality
2. ISO
Process-based quality standards
42
Competitve priorities:
Trade-offs in operations strategy were an important
element of the firm’s overall strategy, and, more
important, a way for operations to contribute to the
competitive edge of the global firm