1.1 Why study Operations and Supply Chain Management?
supply chain: network of manufacturers and service providers that work together to create
products or services needed by end users
operations function (also: operations): collection of people, technology, and systems
responsible for providing the organization's products or services
1) every organization must make a product / provide a service that someone values g operations
2) most organizations function as part of larger supply chain 1; manufacturers & service providers linked
together (physical, information and monetary flows); s.c. links together operations functions of many
different organizations to provide real value to the customer ( g compare: 1)
3) careful management of s.c. and operations in order to prosper and survive; right choices can lead to
competitive advantage and vice versa do the wrong ones
Operations Management
- operations (traditional): transformation process; inputs g outputs (goods / services)
Inputs Transformation Process Outputs
• Materials • Manufacturing operations • (In-)tangible goods 2
• Intangible needs • Service operations • Fulfilled needs
• Information • Satisfied customers
- inputs g outputs can come from many places / take many different forms
- operations highly dependent on quality / availability of inputs
- all operations activities require coordination with other business functions 3
- operations management: information and decision intensive
operations management: planning / scheduling / control activities involved in transformation
1 in the following: abbreviation s.c. will be used
2 sometimes (less common): intangible services provided (e.g.: at a law firm)
3 e.g.: engineering, marketing, human resources
-5- Jannis Mertens
supply chain: network of manufacturers and service providers that work together to create
products or services needed by end users
operations function (also: operations): collection of people, technology, and systems
responsible for providing the organization's products or services
1) every organization must make a product / provide a service that someone values g operations
2) most organizations function as part of larger supply chain 1; manufacturers & service providers linked
together (physical, information and monetary flows); s.c. links together operations functions of many
different organizations to provide real value to the customer ( g compare: 1)
3) careful management of s.c. and operations in order to prosper and survive; right choices can lead to
competitive advantage and vice versa do the wrong ones
Operations Management
- operations (traditional): transformation process; inputs g outputs (goods / services)
Inputs Transformation Process Outputs
• Materials • Manufacturing operations • (In-)tangible goods 2
• Intangible needs • Service operations • Fulfilled needs
• Information • Satisfied customers
- inputs g outputs can come from many places / take many different forms
- operations highly dependent on quality / availability of inputs
- all operations activities require coordination with other business functions 3
- operations management: information and decision intensive
operations management: planning / scheduling / control activities involved in transformation
1 in the following: abbreviation s.c. will be used
2 sometimes (less common): intangible services provided (e.g.: at a law firm)
3 e.g.: engineering, marketing, human resources
-5- Jannis Mertens
