This contains a detailed summary for the second supply chain management course which is taught in period 3 of the second year of IB. It covers chapters 6, 9, 8, and 10 of the book "supply chain management: a logistics perspective" by Coyle, Langley, Novack, and Gibson. It can be used to prepare for...
,PRODUCING GOODS AND
SERVICES
THE ROLE OF PRODUCTION OPERATIONS IN SCM
- Form Utility: transformation of a good or service
- Effective Production Operation: design and execute effective processes, make
supply chain tradeoffs, achieve economies of scale, address competition challenges
and other problems
- Process Functionality: ability to perform different processes from those of
competitors to create unique products or services, or to perform the same processes
but better than the competition
- Make-to-stock (MTS)
- Make-to-order MTO)
- Assemble-to-order (ATO)
- Build-to-order (BTO)
- Engineer-to-order (ETO)
- Production Tradeoffs:
- Volume vs. Variety:
- Economies of Scale: higher-volume production with lower cost per
unit of output; suitable in situations where production processes have
high fixed costs and equipment
- Economies of Scope: low-volume production with flexible capabilities
of producing a wide variety of products; important in markets
characterized by changing customer demand
- Responsiveness vs. Efficiency:
- Centralized vs. Regional: centralized production facilities provide
operating cost and inventory efficiencies; regional production facilities
allow companies to be closer to customers and more responsive
- Large vs. Small: larger facilities with excess capacity provide the
flexibility to respond to demand spikes; smaller facilities that are better
utilized are more cost efficient
- Product-focused vs. Process-focused: product-focused facilities
performing many processes on a single product type are more
responsive; process-focused facilities concentrating on a few functions
across multiple product types are more efficient at its limited scope of
activities
- Production Costs vs. Supply Chain Costs: consider different
production/purchasing costs, transportation costs, or inventory/warehouse
costs when deciding between ATO, MTS, and BTO
- In-house (Make) vs. Outsource (Buy): internal production processes are
more directly visible, and quality is easier to control; outsourcing comes with
, lower production costs and frees up resources for other strategic needs but
are more difficult to control over quality, intellectual property rights, and
customer relationships
- Production Challenges:
- Comply with increased regulation and traceability requirements
- Keep up the pace of product innovation
- Overcome a shortage of skilled labor
- Control capital, pay, and benefit costs
- Manage environmental concerns
- Balance productivity throughput with maintenance requirements
- Manage competitive pressure driven by globalization
- Synchronize activities with the supply chain
- Competitive pressure
- Customer’s demand for choice and rapidly changing tastes
- Labor productivity
OPERATIONS STRATEGY AND PLANNING
Production Strategies:
- Mass Production:
- Market differentiator: cost & inventory protection
- Process option: make-to-stock
- Materials release: push
Performance focus: production throughput
- Limitation on producer’s responsive-ness
- Potential for the bullwhip effect
- Lean Manufacturing:
- Market differentiator: quality & waste reduction
- Process option: assemble-to-order
- Materials release: pull
- Performance focus: cost management
- Difficult to achieve economies of scale
- Require technological capabilities to achieve the supply chain visibility and
synchronization
- Increased risk of disruption
- Flexible Manufacturing:
- Market differentiator: availability & leverage resources
- Process option: build-to-order & engineer-to-order
- Materials release: pull
- Performance focus: segment market share
- High capital investment
- System complexity
- Require skilled technician
- Require disciplined & high level of planning
- Reactive Capability: machine flexibility, routing flexibility
- Adaptive Manufacturing:
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper cxxnxx. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €6,49. Je zit daarna nergens aan vast.
