McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Operations Management and Supply Chain Management Chapter 8

 SECTION 8.1
Chapter 8

OPERATIONS MANAGEMENT

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TRANSFORMATION PROCESSES
Chapter 8

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VALUE-ADDED
Chapter 8

$ $$$

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OM IN BUSINESS – AIRLINE
EXAMPLE
Chapter 8

• Forecasting
• Capacity planning
• Scheduling

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OM IN BUSINESS – AIRLINE
EXAMPLE
Chapter 8

• Managing inventory
• Assuring quality
• Locating facilities

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OM STRATEGIC BUSINESS SYSTEMS
Chapter 8

• Strategic planning
• Strategic business units (SBUs)

• Materials requirement planning (MRP)

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OM STRATEGIC BUSINESS SYSTEMS
Chapter 8

• Tactical planning

• Global inventory management system

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OM STRATEGIC BUSINESS SYSTEMS
Chapter 8

• Operational planning and control (OP&C)

• Inventory management and control system

• Transportation planning system
• Distribution management system

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COMPETITIVE OM STRATEGY
Chapter 8

1. Cost
2. Quality
3. Delivery
4. Flexibility
5. Service

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OM AND THE SUPPLY CHAIN
Chapter 8

• Supply Chain Management (SCM)

1. Supply chain strategy
2. Supply chain partner
3. Supply chain operation
4. Supply chain logistics

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OM AND THE SUPPLY CHAIN
Chapter 8

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OM AND THE SUPPLY CHAIN
Chapter 8

• Effect on Porter’s Five Forces

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 SECTION 8.2
Chapter 8

SUPPLY CHAIN
FUNDAMENTALS

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SUPPLY CHAIN FUNDAMENTALS
Chapter 8

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SUPPLY CHAIN FUNDAMENTALS
Chapter 8

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IT’S ROLE IN THE SUPPLY CHAIN
Chapter 8
Factors Driving SCM

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VISIBILITY
Chapter 8

• Supply chain visibility

• Bullwhip effect

http://en.wikipedia.org/wiki/File:Bulwhip_efect.jpg
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CONSUMER BEHAVIOR
Chapter 8

• Companies can respond faster and more effectively

to consumer demands through supply chain enhances

• Demand planning software

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SCP AND SCE
Chapter 8

• Supply chain planning (SCP) software

• Supply chain execution (SCE) software

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SCP AND SCE
Chapter 8

• SCP and SCE in the supply chain

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SPEED
Chapter 8

• Please customers
• Reduce inventory and HR costs
• Information flows are essential

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SCM SUCCESS FACTORS
Chapter 8

• Back order
• Customer order promised cycle time
• Customer order actual cycle time
• Inventory replenishment cycle time
• Inventory turns

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SCM STRATEGIES
Chapter 8

• Segment customers
• Customize the logistics network
• Listen to signals of market demand and plan
accordingly
• Differentiate products closer to the customer
• Strategically manage sources of supply
• Develop a supply chain IT strategy
• Adopt performance evaluation measures

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SCM SUCCESS FACTORS
Chapter 8

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FUTURE SUPPLY CHAIN TRENDS
Chapter 8

• Fastest growing SCM components

 Supply chain event management (SCEM)
 Selling chain management
 Collaborative engineering
 Collaborative demand planning

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Chapter 8