Supply chain & operations management - the test is NOT based upon the book
1. Processes
2. Lean & value stream mapping
3. Inventory management
4. Warehouse management
5. Transport management
6. Planning & forecasting
Everything that needs to be studied is in Pauls’ Boutique.
Lecture 1 - September 3 2020
For the project: We need to be able to draw processes, this can be done by owcharts
Know for the test: The existence of decision boxes and that you have to use a di erent shape
based on that.
- Important to know the di erent symbols used in a owchart and how to build a owchart.
Learning objectives theme 1 - processes
• De ne both business functions and business processes (slides)
• Explain the di erence between business functions and business processes (slides)
• Understand about business cycles (event driven process chains) (article Pauls Boutique)
• Understand about process types and their characteristics and product-process matrix (project,
batch etc.) (chapter 6)
• Apply the knowledge on process types (chapter 6)
• Understand about production strategies (MTS, MTO, ATO, ETO) (article Pauls Boutique)
• Apply the knowledge on production strategies (article Pauls Boutique)
• Understand the basics on building a owchart (chapter 6)
• Apply the knowledge on building a owchart (chapter 6)
• Understand the principles for redesigning a process (chapter 6)
• Understand that automation is NOT a problem xer (chapter 6)
Business functions: Activities of every department. It’s an organisational unit (department).
- Finance department
- Marketing & sales department
- R&D engineering department
- Planning
- Procurement
- Manufacturing
- Distribution
- etc.
(function has a lot of processes in it)
Business process: The process can go through multiple departments. Group of related tasks
with speci c inputs & outputs.
Collectie van samenhangende activiteiten die starten met een trigger en eindigen met de levering
van één of meerdere producten.
(business analysis is always about processes. Business processes can be through a lot of
di erent functions.)
Di erence business functions and business process: business process is a serie of related
tasks that results in the desired output. A business function is an organisational unit of a business
with speci c sets of responsibilities / tasks that it executes to help the business carry out its
overall objectives and processes.
• What are the bene ts of describing business processes, instead of describing activities of every
department (business function)?
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,Business cycles - event driven process chains:
If you zoom into a process you will nd di erent events. The events drive logistic, nance, HR etc.
The processes consist of a collection of events which match with each other (activities).
In dit voorbeeld zie je dat het ‘event’ is dat er een klanten order is ontvangen. Deze klanten order
zet logistics, nance en andere afdelingen aan die te maken hebben met het verwerken van een
klanten order. Andere afdelingen die getriggerd zouden kunnen worden door het event zijn
bijvoorbeeld customer center of het warehouse.
Business cycles (general cycles in every business) - these processes go through di erent
departments.
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, Andere veel voorkomende cycles zijn:
• P2P: Purchase to pay / procure to pay / req to cheque
• Buy something, later on invoice.
• O2O: opportunity to order
• Go to Africa, you see everyone on barefoot, that’s an opportunity.
• O2I: opportunity to invoice
• I2C: Issue to complete (production / manufacturing)
• C2L: Concept to launch (product development)
• SNR: Sustain and Retain (customer services and support) - klanten ondersteunen en behouden.
• H2R: Hire to Retire
• HR department hire people, guide them, educate them and later help them to retire.
• O2C: Order to cash
• If you have an order you want to have the cash.
Process types and their characteristics
Project:
- one of a kind production of a product to customer order.
- Unique purpose
- Not repetetive
- Relatively short period of time
- One-time operational activity or e ort
- Draws resources from multiple departments
- Large investment of funds and resources
- e.g. construction projects, ship building, new-product development, and aircraft manufacturing.
Batch:
- For example brewing beer: the amount of beer you can brew is limited by the size of the tank.
- One bench stays together.
- Same uniform character / quality.
- Produced according to a single manufacturing order during the same cycle of manufacturing.
- Process many di erent jobs at the same time in groups or batches.
- e.g. printers, bakeries, machine shops, education and furniture making.
Batch number = lot number.
- Identi cation number.
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, - Products with the exact same batch number are the exact same product.
Mass:
- Produce large volumes of a standard product for a mass market.
- Stable product demand, product volume is high.
- Few number of di erent products.
- e.g. automobiles, televisions, personal computers, fast food and most consumer goods.
Continues:
- It’s really expensive to stop the process - too expensive, so the process cannot be stopped. ->
always go on.
- For very high-volume commodity products that are very standardised.
- E.g. oil, paper and water
- Very few di erent kind of products.
Batch number in continues process: speci c identi ed amount produced in a unit of time or
quantity in a manner that assures its having a uniform and quality within speci ed limits.
Product-process matrix:
- intermittent = stopping and starting often and in short periods (like rain falling in the
Netherlands)
- Repetitive = done many times in the same way.
- Project and batch production are intermittent.
- Mass and continues production are repetitive.
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