Production Operations Management
Exam |152 Questions and Answers
Operations and supply chain management involves - --Product design
-Purchasing
-Manufacturing
-Service Operations
-Logistics
-Distribution
Success depends upon
-Strategy
-Processes to deliver products and services
-Analytics to support the decisions needed to manage the firm
- 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
-Operations and supply chain management (OSCM) IS
-A functional field of business
-Concerned with the management of the entire production/delivery system
- Operations - -Manufacturing and service processes used to transform
resources into products
- Supply Chain - -Processes that move information and material to and from
he firm
- Process Activities - -Planning- processes needed to operate an existing
supply chain
Sourcing- selection of suppliers that will deliver the goods and services
needed to create the firm's product
Making- Producing the major product or service
Delivering-Logistics processes such as selecting carriers, coordinating the
movement of goods and information, and collecting payments from
customers.
Returning- Receiving worn-out, excess, and/or defective products back from
customers
- Pure good - -example food products
- Core Goods - -Example automobile
,- Core services - -Airlines
- Pure Services - -Example teaching
- Current issues in OSCM - --Coordinating relationships between members of
SC
-Optimizing global network or suppliers, producers, and distributors
-Managing customer touch points
-Raising awareness of OSCM as a competitive weapon
-Sustainability and triple bottom line - Economic, Social and Environmental
criteria
- Efficiency, Effectiveness, and Value - -Efficiency
-Doing Something at the lowest possible cost
Effectiveness
-Doing the right things to create the most value for your customer
Value
-The attractiveness of a product relative to its cost
- Comparison of firm is important to investors - --From an operations and
supply cain perspective, the relative cost of providing a good or service is
closely related to earnings growth
- Managements efficiency ratios - -Labor Productivity
-Net Income per employee
-Revenue (or sales) per employee
Asset Productivity
-Receivables turnover ration = Annual credit sales/average accounts
receivable
-Inventory turnover= cost of goods sold/average inventory value
-Asset turnover= revenue(or sales)/total assets
- Company Aspirations Beyond Making a Profit - -Cliff Bar's Aspirations (an
example)
1. Sustaining our Planet- Keep our impact on the planet small, even as we
grow.
2. Sustaining our community, be good neighbors, give back to the
community
3.. Sustaining our people- Create an environment where people can live life
to the fullest, even from 9 to 4.
4. Sustaining our business - grow slower, grow better, and stick around
longer.
, 5. Sustaining our Brands - Make what people actually need. Never
compromise quality.
- Sustainable Strategy - --The firm's strategy describes how it will create
and sustain value for its current shareholders
-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.
-Adding a sustainability requirement means meeting value goals without
compromising the ability of future generations to meet their own needs.
-Triple bottom line - evaluating the firm against social, economic, and
environmental criteria
- Operations and Supply Chain Strategy - --Setting broad policies and plans
for using the resources of a firm- must be integrated with corporate strategy
-Corporate strategy provides overall direction and coordinates operational
goals with those of the larger organization
-Operations effectiveness- performing activities in a manner that best
implements strategic priorities at a minimum cost
- Steps to formulating an operations and supply chain strategy - -1.
Develop/Refine the strategy
-Define vision, mission, and objectives
-Conduct strategic analysis
-Define strategic competitive priorities
2. Translate the strategy to operations and supply chain initiatives
(quarterly)
-Product design/revision initiatives
-Sourcing/location of facilities initialization
3. Major Focus Points and Projects
-Major operations initiatives
-Major logistics/ distributions initiatives
- Competitive Dimensions - -Price
-make the product or deliver the service cheap
Quality
-Make a great product or delivery a great service
Delivery Speed
-Make the product or deliver the service quickly
Delivery Reliability
Exam |152 Questions and Answers
Operations and supply chain management involves - --Product design
-Purchasing
-Manufacturing
-Service Operations
-Logistics
-Distribution
Success depends upon
-Strategy
-Processes to deliver products and services
-Analytics to support the decisions needed to manage the firm
- 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
-Operations and supply chain management (OSCM) IS
-A functional field of business
-Concerned with the management of the entire production/delivery system
- Operations - -Manufacturing and service processes used to transform
resources into products
- Supply Chain - -Processes that move information and material to and from
he firm
- Process Activities - -Planning- processes needed to operate an existing
supply chain
Sourcing- selection of suppliers that will deliver the goods and services
needed to create the firm's product
Making- Producing the major product or service
Delivering-Logistics processes such as selecting carriers, coordinating the
movement of goods and information, and collecting payments from
customers.
Returning- Receiving worn-out, excess, and/or defective products back from
customers
- Pure good - -example food products
- Core Goods - -Example automobile
,- Core services - -Airlines
- Pure Services - -Example teaching
- Current issues in OSCM - --Coordinating relationships between members of
SC
-Optimizing global network or suppliers, producers, and distributors
-Managing customer touch points
-Raising awareness of OSCM as a competitive weapon
-Sustainability and triple bottom line - Economic, Social and Environmental
criteria
- Efficiency, Effectiveness, and Value - -Efficiency
-Doing Something at the lowest possible cost
Effectiveness
-Doing the right things to create the most value for your customer
Value
-The attractiveness of a product relative to its cost
- Comparison of firm is important to investors - --From an operations and
supply cain perspective, the relative cost of providing a good or service is
closely related to earnings growth
- Managements efficiency ratios - -Labor Productivity
-Net Income per employee
-Revenue (or sales) per employee
Asset Productivity
-Receivables turnover ration = Annual credit sales/average accounts
receivable
-Inventory turnover= cost of goods sold/average inventory value
-Asset turnover= revenue(or sales)/total assets
- Company Aspirations Beyond Making a Profit - -Cliff Bar's Aspirations (an
example)
1. Sustaining our Planet- Keep our impact on the planet small, even as we
grow.
2. Sustaining our community, be good neighbors, give back to the
community
3.. Sustaining our people- Create an environment where people can live life
to the fullest, even from 9 to 4.
4. Sustaining our business - grow slower, grow better, and stick around
longer.
, 5. Sustaining our Brands - Make what people actually need. Never
compromise quality.
- Sustainable Strategy - --The firm's strategy describes how it will create
and sustain value for its current shareholders
-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.
-Adding a sustainability requirement means meeting value goals without
compromising the ability of future generations to meet their own needs.
-Triple bottom line - evaluating the firm against social, economic, and
environmental criteria
- Operations and Supply Chain Strategy - --Setting broad policies and plans
for using the resources of a firm- must be integrated with corporate strategy
-Corporate strategy provides overall direction and coordinates operational
goals with those of the larger organization
-Operations effectiveness- performing activities in a manner that best
implements strategic priorities at a minimum cost
- Steps to formulating an operations and supply chain strategy - -1.
Develop/Refine the strategy
-Define vision, mission, and objectives
-Conduct strategic analysis
-Define strategic competitive priorities
2. Translate the strategy to operations and supply chain initiatives
(quarterly)
-Product design/revision initiatives
-Sourcing/location of facilities initialization
3. Major Focus Points and Projects
-Major operations initiatives
-Major logistics/ distributions initiatives
- Competitive Dimensions - -Price
-make the product or deliver the service cheap
Quality
-Make a great product or delivery a great service
Delivery Speed
-Make the product or deliver the service quickly
Delivery Reliability
