C720: OPERATIONS & SUPPLY CHAIN
MANAGEMENT – NOTES / STUDY
GUIDE
, lOMoARcPSD|52690394
C720: OPERATIONS & SUPPLY CHAIN MANAGEMENT – NOTES / STUDY GUIDE
Competency: Operational Strategies - MODULES 1,2,12
Unit 2: Management and Planning
Module 1: Fundamental Operations Concepts
Competency: Operational Strategies
1. Teamwork in operations benefit the customer when coordinated decisions within an organization
produce high quality products that customers value.
2. Product and process design are crucial and relate to both the design of goods and services.
a. Product design – consideration of the characteristics, features, and performance of the
product.
b. Product technology – application of knowledge to improve the product.
c. Process design – describes how a product will be made.
d. Process technology - application of knowledge to improve a process.
3. Teamwork can help make improvements to products. To remain competitive in the global
marketplace, teamwork should be utilized to help solve quality and productivity problems.
4. Most organizations develop common goals during the budgeting and planning process, which are
done annually.
5. Many businesses are shifting to organization by process due to today’s fast paced environment.
6. Organizational structures designed by process cross-functional lines. Cross-functionality – a unique
feature important to any organization.
7. Eliminating functional silos allows teams to share knowledge and understanding of decision-making
across the organization. Decentralizing decision-making leads to more cross-functional teams.
8. Relative advantage- the difference between the lowest cost producer and the next-lowest cost
producer.
9. Ethics- a sense of what is right and wrong that guide behavior.
10. Sustainability- reflects the efforts organizations are expected to make to balance their
interconnected obligations to economic viability, the societies in which they operate, and the
natural environment - the “triple bottom line.”
11. Organizations need to focus on how a decision affects not just profitability, but also employees, the
community, and the environment, in the long and short term.
Module 2: Competitive Advantage
Competency: Operational Strategies
1. Competitive advantage- a capability that customers value that gives an organization an edge
against its competition.
2. VIRAL= Value to consumers, it should be Inimitable (not easily imitated), Rare, and an organization
should have the Aptitude and Lifespan to earn appropriate returns on the advantage.
3. SWOT Analysis - assists in planning to achieve objectives.
4. Key processes - organizations must have: strategy development, product development,
development of systems to produce services and goods, and order fulfillment to leverage impact.
5. Systems development key to meeting strategic goals. Resources include: people, facilities,
equipment, materials, and energy.
6. Process redesign facilitates working toward a common goal in organizations.
7. Productivity- a mathematical calculation. It is the ratio of the outputs achieved divided by the inputs
consumed to achieve those outputs. Productivity = Output / Input. Change in productivity = (new
productivity – old productivity) / old productivity.
8. Labor productivity = Quantity or value of units produced divided labor hours or labor cost. Labor
Productivity = Quantity or Value of Units Produced / Labor Hours or Labor Costs.
Unit 7: Inventory Management
Module 12: Inventory Management
MANAGEMENT – NOTES / STUDY
GUIDE
, lOMoARcPSD|52690394
C720: OPERATIONS & SUPPLY CHAIN MANAGEMENT – NOTES / STUDY GUIDE
Competency: Operational Strategies - MODULES 1,2,12
Unit 2: Management and Planning
Module 1: Fundamental Operations Concepts
Competency: Operational Strategies
1. Teamwork in operations benefit the customer when coordinated decisions within an organization
produce high quality products that customers value.
2. Product and process design are crucial and relate to both the design of goods and services.
a. Product design – consideration of the characteristics, features, and performance of the
product.
b. Product technology – application of knowledge to improve the product.
c. Process design – describes how a product will be made.
d. Process technology - application of knowledge to improve a process.
3. Teamwork can help make improvements to products. To remain competitive in the global
marketplace, teamwork should be utilized to help solve quality and productivity problems.
4. Most organizations develop common goals during the budgeting and planning process, which are
done annually.
5. Many businesses are shifting to organization by process due to today’s fast paced environment.
6. Organizational structures designed by process cross-functional lines. Cross-functionality – a unique
feature important to any organization.
7. Eliminating functional silos allows teams to share knowledge and understanding of decision-making
across the organization. Decentralizing decision-making leads to more cross-functional teams.
8. Relative advantage- the difference between the lowest cost producer and the next-lowest cost
producer.
9. Ethics- a sense of what is right and wrong that guide behavior.
10. Sustainability- reflects the efforts organizations are expected to make to balance their
interconnected obligations to economic viability, the societies in which they operate, and the
natural environment - the “triple bottom line.”
11. Organizations need to focus on how a decision affects not just profitability, but also employees, the
community, and the environment, in the long and short term.
Module 2: Competitive Advantage
Competency: Operational Strategies
1. Competitive advantage- a capability that customers value that gives an organization an edge
against its competition.
2. VIRAL= Value to consumers, it should be Inimitable (not easily imitated), Rare, and an organization
should have the Aptitude and Lifespan to earn appropriate returns on the advantage.
3. SWOT Analysis - assists in planning to achieve objectives.
4. Key processes - organizations must have: strategy development, product development,
development of systems to produce services and goods, and order fulfillment to leverage impact.
5. Systems development key to meeting strategic goals. Resources include: people, facilities,
equipment, materials, and energy.
6. Process redesign facilitates working toward a common goal in organizations.
7. Productivity- a mathematical calculation. It is the ratio of the outputs achieved divided by the inputs
consumed to achieve those outputs. Productivity = Output / Input. Change in productivity = (new
productivity – old productivity) / old productivity.
8. Labor productivity = Quantity or value of units produced divided labor hours or labor cost. Labor
Productivity = Quantity or Value of Units Produced / Labor Hours or Labor Costs.
Unit 7: Inventory Management
Module 12: Inventory Management
