Chapter 1 Introduction to Operations and Supply Chain Management with complete verified solutions

Why study operations and supply chain management? 1. Every organization must make a product or provide a service that someone values 2. Most organizations function as part of larger supply chain 3. Operations Management: the planning, scheduling, and control of the activities that transform inputs into finished goods and services Supply Chains are very COMPLEX Brainpower Read More 0:00 / 0:00 Operations Management planning, scheduling, and control of the activities that transform inputs into finished goods and services -Inputs -Transformation process -Outputs Inputs Materials, intangible needs, information Transformation Process manufacturing and service operations (this ADDS value) Outputs tangible goods, fulfilled needs, satisfied customers Supply Chain Management the active management of supply chain activities and relationships in order to maximize customer value and achieve a sustainable competitive advantage Supply Chain network of manufacturers and service providers that work together to create products or services needed by end users. These manufacturers are linked together through physical flows, information flows, and monetary flows Upstream activities or firms positioned either earlier in the supply chain Downstream activities or firms positioned late in the supply chain First tier supplier a supplier that provides products or services directly to a firm closet to you Second tier a supplier that provides products or services to a firm's first tier supplier Anaheuser Busch's Supply Chain Alcoa- Ball Corp- Anheuser Busch- M&M- Meijer Supply Chain Operations Reference (SCOR) Model standard way of explaining the supply chain Planning activities seek to balance demand requirements against resources and communicate these plans to the various participants Sourcing activities identifying, developing, and contracting with suppliers and scheduling the delivery of incoming goods and services (finding suppliers) Make/ Production Activities cover the actual production of a good or service Delivery Activities everything from entering customer orders and determining delivery dates to storing and moving goods to their final destination Return Activities the activities necessary to return and process defective or excess products Subassembly a part that is not the final product SCC supply chain counsel Supply Chain Raw Material- Manufacturing Plant- Distributor/Wholsaler- Retailer- End customer (Cash flow throughout process) Important Trends 1. Electronic Commerce 2. Increasing Competition and Globalization 3. Relationship Management electronic commerce use of computer and telecommunications technology to conduct business via electronic transfer of data and documents increasing competition and globalization customers demands are changing and new competitors used to be local, but now are open to bigger markets relationship management organizations must manage the relationships with their upstream suppliers as well as their downstream customers Professional Organizations APICS- Association for Operations Management ISM- Institute for Supply Management CSCMP- Counsel of Supply Chain Management Professionals ASQ-American Society for Quality Potential Career Paths Analyst, Production Manager, Service Manager, Sourcing Manager, Commodity Manager, Supplier development manager, international logistics manager, transportation manager Major Operations and supply chain activities a) process selection b) forecasting c) capacity planning d)inventory management