MGSC 346 2023 with 100% correct questions and answers

Operations and supply chain management involves specialists in: Product design​ Purchasing​ Manufacturing​ Service operations​ Logistics​ Distribution Operations and supply chain management Success depends upon Operations-related strategy [Plans to reach corporate goals]​ Processes to deliver products and services [Activities using inputs labor, equipment, raw materials, capital]​ Analytics to support the decisions needed to manage the firm ​ [Data, Information, Knowledge, Knowledge Sharing, Learning Org.] What is Operations and Supply Chain Management? The design, operation, and improvement of the systems that create and deliver the firm's primary products and services What is Operations and Supply Chain Management concerned with? Operations and Supply Chain Management (OSCM) is concerned with the management of the entire product production or service delivery system The functional fields of business are: Sales In the past Isolated databases, Silos, Islands of Analysis; Today, Cross-Functional Teams, ERP Systems, Dashboards, Drilldown​ Operations and Supply Chain Management​ Marketing​ Finance​ Operations​ Manufacturing and service processes used to transform resources into products​ Manufacturing produces physical products​ Services produce intangible products Supply Chain​ Processes that move information and material to and from the firm​ Logistics processes move products​ Warehousing processes store products​ Information makes the process more efficient Operations and Supply Chain Processes planning Planning - processes needed to operate an existing supply chain strategically Operations and Supply Chain Processes Sourcing Sourcing - selection of suppliers that will deliver the goods and services needed to create the firm's product. A set of pricing, delivery, payments, and partner relationship metrics needed Operations and Supply Chain Processes Making Making - producing the major product or providing the service Operations and Supply Chain Processes delivering Delivering - logistics processes such as selecting carriers, coordinating the movement of goods and information, and collecting payments from customers Operations and Supply Chain Processes Returning Returning - processes for receiving worn-out, defective, and excess products back from customers Efficiency- lean mgt., cutting waste​ Doing something at the lowest possible cost​ Effectiveness- reaching organizational goals​ Doing the right things to create the most value for the customer Value- Quality/Price or Features/Price​ The attractiveness of a product relative to its price Benchmarking - ​ a process in which one company studies ​the processes of another company to identify best practices​ Benchmarking is important to investors​ From an operations and supply chain perspective, the relative cost of providing a good or service is closely related to earnings growth​ Current Issues in OSCM​ Coordinating relationships between organizations​ Coordinating relationships between organizations​ Managing the companies that produce components and supply major business​ functions for the firm- SCM, strategic alliances, joint ventures, IT consultants ​ Current Issues in OSCM​ Optimizing global supplier, production and distribution networks​ Optimizing global supplier, production and distribution networks​ Leveraging the information available to the firm to make decisions concerning ​ inventory, transportation, and production Current Issues in OSCM​ Managing customer touch points--- mobile apps versus brick and mortar stores​ Managing customer touch points--- mobile apps versus brick and mortar stores​ Recognize that resource utilization decisions must consider both the cost of ​ staffing and the costs associated with lost customers- tradeoff robots, humans, phone calls​ Current Issues in OSCM​ Raising awareness of the competitive advantages of OSCM​ Raising awareness of the competitive advantages of OSCM​ Many companies have created significant advantages (profits increased) through OSCM​ Historical Focus on Profit Maximization​ Businesses have focused historically on profit maximization​ Focus upon increasing Shareholder Wealth with publicly traded firms​ Increasing Profits supports increasing Shareholder Wealth​ Operations Management can assist with Increasing Profits​ Profits= Total Revenues- Total Costs​ = [(Price)*(Quantity)] - [Fixed Costs + Variable Costs] How Operations Mgt. Can Increase Profits​ Increased Prices (better quality, better service, innovation,...)​ Increased Quantity (forecasting, inventory, SCM, layout, capacity,...)​ Lower Variable Costs (lean mgt., Deming waste reduction, offshore​ outsourcing, bulk buying materials, nonpeak utilities, Quality tools)​ Lower Fixed Costs (lower RE costs via layout, legal retainer fees,​ insurance premiums, overseas facilities, government regulations) ​ Sustainable Operations​ Sustainability - the ability to meet current resource needs without compromising​the ability of future generations to meet their nee Sustainable Operations​ firms strategy The firm's strategy describes how it will create and sustain value for its current shareholders​ Shareholders vs. Stakeholders Shareholders - individuals or companies that legally own one or more shares of stock in the company​ Stakeholders - individuals or organizations who are directly or indirectly influenced by the actions of the firm. Not possible to please all stakeholders; assess their power and predict actions. ​ Sustainable Operations​ The goal of sustainability The goal of sustainability means that the scope of the firm's strategy must focus on three areas (the triple bottom line)​ Social responsibility - business practices should be fair to labor, the community, and the region where the firm conducts business. Not every manager or firm agrees upon this responsibility.​ Economic prosperity - shareholders must be compensated via a competitive return​ Environmental stewardship - the company should protect the environment as much as possible.​ Not every manager or firm agrees upon this responsibility.​ ​ Competitive Dimensions​ Cost or price Cost or Price​ Make the product or deliver the service cheap; offer lowest price guarantee​ Competitive Dimensions​ quality Quality​ Make a great product or delivery a great service​ Competitive Dimensions​ delivery speed Delivery Speed​ Make the product or deliver the service quickly Competitive Dimensions​ Delivery reliability Delivery Reliability​ Deliver it when promised Competitive Dimensions​ Coping with Changes in Demand change its volume Competitive Dimensions​ Flexibility and New-Product Introduction Speed​ Change it (offer a wide variety of existing products and introduce new products quickly)​ Competitive Dimensions​ ... Competitive Dimensions ​Other Product-Specific Criteria​ Support it (technical assistance, meeting launch dates, after-sale support, environmental impact) Risk Management Framework Vulnerability Analysis 1.Identify the sources of potential disruptions​ Highly situation-dependent​ Focus should be on highly unlikely events​ 2.Assess the potential impact of the risk​ Goal is to quantify the probability and impact​ 3.Develop plans to mitigate the risk​ Detailed strategy for minimizing the impact of the risk​ Productivity Measurement​ Productivity how well resources are used outputs/inputs Is a relative measure meaning:must be compared to some other measure to be meaningful Companies can compare to industry competition past productivity of itself or against manager expectations Productivity measurement partial productivity measures the ratio of some output to a single output Productivity Measurement multifactor productivity measures the ratio of some output to a group of inputs Productivity Measurement total productivity measures the ratio of all outputs to all inputs Seasonal Index The seasonal index is the ratio of the amount sold during each season divided by the average for all seasons​ Forecast Errors​ Forecast error - the difference between the forecast value and what actually occurred​ All forecasts contain some level of error Forecast Errors​ Sources of error​ Sources of error​ Bias - when a consistent mistake is made​ Random - errors that are not explained by the model being used Forecast Errors​ Measures of error Measures of error- nominal avg. errors, squared errors less used ​ Mean absolute deviation (MAD)​ Mean absolute percent error (MAPE)​ Tracking signal​ Forecast Errors​ Why MAD and MAPE Are Used to Assess Error January + 30 units error​ February -10 units error​ March -20 units error ​ The Average Nominal Error= 0 because +30, -10, -20 cancel out to 0​ You can avoid this by taking squared errors and average squared error (managers don't like taking squared errors; statisticians like this)​ OR you can take absolute error or absolute value of error:​ 30, 10, 20 and the MAD Mean Absolute Deviation is (60/3)=20​ Collaborative Planning, Forecasting, and Replenishment (CPFR)​ An Internet tool used to coordinate the efforts of a supply chain​ Demand forecasting​ Production and purchasing​ Inventory replenishment​ Integrates all members of a supply chain - manufacturers, distributors, and retailers​ Depends upon the exchange of internal information to provide a more reliable view of demand​ CPFR Steps​ Step 1 creation of a front end partnership agreement step 2 joint business planning step 3 development of demand forecasts step 4 sharing forecasts step 5 inventory replenishment