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Summary Operations& Supply chain management I Y1Q2
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Operations and Supplyi chain manageemenWeek 1 Traininge
Whyi s udyi operations and supplyi chain manageemen
SCM will enable you to solve complex business problems related to the journey of
products and services from the manufacturer or provider to the end customer
Understanding business processes and be able to analyse them, helps you improve
the business
Objectives Traininge 1
Describe what the operaton functon is and why its critcal to an organizatonns
survival
Describe what a supply chain is and how it related to a partcular organizatonns
operatons functons
Discuss what is meant by operatons management and supply chain management
Identfy some of the major operatons and supply chain actvites, as well as career
opportunites in these areas
journeyi of produc s: from manufacturer to end consumer
,Wha is operations manageemen ?
The planning, scheduling and control of the actvites that transform inputs into
finished goods and services
Operations function: the collecton of people, technology and systems within an
organizaton that has primary responsibility for providing the organizatonns
products or services
Wha is logeistics (MGT)? Wha are he 7 rigeh s of logeistics?
-transportaton from product to company, distributon
-storage, warehousing of goods
-7 rights of logistcs: 7 things you need to do right when it comes to logistcs
right tme (not too late but not too early)
right place
right quantty
right price
right product
right customer
right conditon
Wha is logeistics manageemen ?
CSCMP (council of supply chain management professionals): Logistcs management is that
part of the supply chain management that plans, implements and controls the efcient,
effectve forward and reverse oow and storage of goods, services, and related informaton
between the point of origin and the point of consumpton in order to meet customersn
requirements.
reverse: return things if they arennt satsfied, quality problems for example, recycling and re-
usage, what the governments wants us to do more
more complicated because its less predictable
recyiclinge: take plastc and make something new
reusinge: product stays the same and using it again
,Wha is supplyi chain manageemen ?
A supply chain encompasses all actvites associated with the oow and
transformaton of goods from the raw material stage (extracton), through to the
end user, as well as the associated informaton oows
They are linked together through physical oows, informaton oows and monetary
oows
The actve management of supply chain actvites and relatonships in order to
maximise customer value and achieve a sustainable compettve advantage. It
represents a conscious effort by a firm or group of firms to develop and run supply
chains in the most effectve and efcient ways possible
-creatng value, the movement and storage of raw materials, of work-in-process inventory,
and of finished goods from point of origin to point of consumpton
Ups ream: actvites or firms that are positoned earlier in the supply chain relatve to some
other actvity or firm of interest.
Downs ream: A term used to describe actvites or firms that are positoned later in the
supply chain relatve to some other actvity or firm of interest.
Firs ear supplier: a supplier that provides products or services directly to a firm
Secondaryi tier supplier: a supplier that provides products or services to a firmns first-ter
supplier
Supplyi chain operations reference (SCOR) model
A framework developed and supported by the Supply chain council that seeks to
provide standard descriptons of the processes, relatonships and metrics that define
supply chain management
5 broad areas:
planninge activities which seek to balance demand requirements against resources
and communicate these plans to the various partcipants
, sourcinge activities which include identfying, developing, and contractng with
suppliers and scheduling the delivery of incoming goods and services
”Make” or production, activities, which cover the actual producton of a good or
service
deliveryi activities which include everything from entering customer orders and
determining delivery dates to storing and moving goods to their final destnatons
Re urn activities which include the actvites necessary to return and process
defectve or excess products or materials
Impor an rends
Elec ronic commerce: the use of computer and telecommunicatons technologies to
conduct business via electronic transfer of data and documents
Increasinge competition and gelobalization
Relationship manageemen : e-commerce break troughts have given companies a
wide range of optons for beter managing their operatons and supply chains.
Increasing customer demands and global competton have given firms the incentve
to improve in these areas
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