Operations and Supplychain management (ISIB1BEOSM101)
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Learning objectives By the end of this module you are able to:
- Study chapters 1-5 (not 3.3/3.4/5.4), PP slides
• Recognize the basic principles of the supply chain concept and supply chain strategy, where
there is a focus on cooperation, sustainability and integration between all parties in the supply
chain, in order to be able to oversee the link between organizations and the effects Supply
Chain Management (SCM) has on it.
• Relate to the importance of departmental processes, especially operations processes, for the
value (chain) of a company and how they are part of the process view of organizations.
• Recognize, compare and explain the ins and outs of business process management, including
tools and techniques (i.e. flow charting) to manage and improve business processes.
• Identify and compare different concepts of manufacturing processes and how product
standardization, production volumes and customization determines process choices.
• Identify and compare different concepts of service processes and several factors determining
process choices and management decisions.
• Recognize and relate to different perspectives of quality and quality management as well as
different tools and techniques to control quality.
,Chapter 1- week 1 Q2 Introduction
• Recognize the basic principles of the supply chain concept and supply chain strategy, where
there is a focus on cooperation, sustainability and integration between all parties in the supply
chain, in order to be able to oversee the link between organizations and the effects Supply
Chain Management (SCM) has on it.
Why study supply chain management?
1 every organization must make a product or provide a service that someone values.
2 most organizations function as a larger part of supply chains.
3 organizations must carefully manage their operations and supply chains in order to
prosper and indeed, survive.
4 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
Operations: (operations function) The collections of people, technology, and systems
within an organization that has primary responsibility for providing the organizations
products or services.
(the part of a business organization that is responsible for producing goods or
services)
Supply chain: a network of manufactures and service providers that work together to
create products or services needed by end users. These manufactures and service
providers are linked together through physical flows, information flows, and
monetary flows.
(a sequence of activities and organizations involved in producing and delivering a
good or service)
Operations management
The planning, scheduling, and control of the activities that transform inputs into
finished goods and services.
(the management of systems or processes that create goods and/or services)
Value -added:
the two types of transforming resource are:
- staff – the people involved directly in the transformation process or supporting it
-facilities – land, buildings, machines and equipment.
,Logistics management
“Logistics management is that part of the Supply Chain Management that plans,
implements, and controls the efficient, effective forward and reverse flow and storage
of goods, services, and related information between the point of origin and the point
of consumption in order to meet customers’ requirements.”
Supply chain management
The active management of supply chain activities and relationships in order to
maximize customer value and achieve a sustainable competitive advantage. It
represents a conscious effort by a firm or group of firms to develop and run supply
chains in the most effective and efficient ways possible.
A supply chain “encompasses all activities associated with the flow and
transformation of goods from the raw material stage (extraction), through to the end
user, as well as the associated information flows”.
Operations and Supply Chain Strategy is the setting of broad policies and plans for using the
firm’s resources optimally. This must be integrated with corporate strategy. Operations
effectiveness is performing activities in a manner that best implements strategic priorities at
minimum cost.
Upstream
A term used to describe activities or firms that are positioned earlier in the supply
chain relative to some other activity or firm of interest. For example, corn harvesting
takes place upstream of cereal processing, and cereal processing takes place
upstream of cereal packaging
Downstream
A term used to describe activities or firms that are positioned later in the supply chain
relative to some other activity or firm of interest. For example, sewing a shirt takes
place downstream of weaving the fabric, and weaving the fabric takes place
downstream of harvesting the cotton.
First-tier supplier
A supplier that provides products or services directly to a firm.
Second-tier supplier
A supplier that provides products or services to a firm’s first-tier supplier.
Supply Chain Operations reference (SCOr) model
= A comprehensive model of the core management processes and individual process
types that, together, define the domain of supply chain management.
, A framework developed and supported by the Supply Chain Council that seeks to
provide standard descriptions of the processes, relationships, and metrics that define
supply chain management.
The model wants to address, improve, and communicate supply chain management
decisions within a company and with suppliers and customers of a company (1). The
model describes the business processes required to satisfy a customer’s demands. It
also helps to explain the processes along the entire supply chain and provides a
basis for how to improve those processes.
- The scor model gives companies an idea of how advanced its supply chain is.
Why would companies spend time and money to develop a reference model such as
SCOR?
- a reference model gives individuals a common language for discussing and
comparing supply chain business processes. This can be especially important
when benchmarking performance or coordinating with other firms to build a
supply chain
- a reference model provides a template to guide the design and
implementation of an organization’s own supply chain processes
- seeing the processes laid out in a single, comprehensive model helps some
managers better understand what supply chain management is all about.
Looks at 3 levels
- Level 1 of the views SCM activities as being structured around five core
management processes
Covers 5 broad areas:
1. Planning activities,- Processes that balance aggregate resources with
requirements.
which seek to balance demand requirements against resources and
communicate these plans to the various participants; The plan also includes
determining business rules to improve and measure supply chain efficiency.
2. Sourcing activities, - Processes that procure goods and services to meet
planned or actual demand.
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