Class 5 lecture notes
Class 5 lecture notes
no case studies for Sunday midterm midterm similar to clicker questions 50 m/c – roughly 8 questions per chapter
chapter 5 Operations management Transformation: changing input into output o Inputs: information, land, capital o Outputs: goods and services You take value as you’re moving across the chain Outputs feedback: customer satisfaction surveys, this should feed back into the control so you can make things better Don’t always think of inputs and outputs as “steel turning into car” the output can also be “educated individuals” Most products are not pure good or pure services o Automobiles are more goods and a bit of services o Teaching is more services and less goods
Typical operating management activities o Forecasting, capacity planning, scheduling etc..
Ford motor company operation strategy o What factory should produce what cars o Where we locate the factories
Highest level of operational planning: o Strategic planning o Tactical: how many workers do we need? o Operational planning: short ranged, what do we work on today? Tmr?
Strategic business unit: o Ex: Bugatti is under volkswagon
** 5 key competitive priorities that can add value for customers: o cost o quality o delivery making sure goods go out properly o flexibility o service if you can provide better service, you have better chance of selling to your customer
Operation strategy is not just the building stage! Supply chain management is part of the operational management strategy Good supply chain contains all the parties involved o Ex: best buy is updated every 30 min on the internet, Supply chain management: isn’t just the raw materials and the goods, it’s actually the informational flow as well 5% increase in profit management just by implementing good supply chain management supply chain operation o you do the packaging for the product supply chain logistic o happens when you actually deliver the products typical manufacturing supply chain for ford: o magna (raw materials), storage of raw materials, assembling, storage of new vehicles, distribution trucks, retailer, consumers typical service supply chain for itunes o artists and record labels, database, creating the files, customers Porter’s five forces: o Increase supplier power o Decrease buyer power
Clicker: How is operations management critical to scm Inc. and its customer, walmart Canada? Which of the following do not apply? c) given that scm inc. is a third party… which statement is correct? c) how does scm inc. use the five competitive priorities to help increase the value of both its goods and services and those of walmart Canada which of the following are not competitive priorities? c) information Section 5.2
supply chain has 3 main links a typical supply chain for a manufactururer
Supply chain fundamentals
source: who are you going to buy from making how are you gonna make it delivery: delivering in the shortest amount of time return: return process is part of supply chain too
Information systems’ role *** go over this part in textbook Factors driving SCM *** o Visibility: See the supply chain o Competition: if you don’t have good supply chain management in place, your competition will kill you o Speed: if you can build stuff faster, you will do better o Consumer behavior
3 factors fostering speed o make supply chain faster
supply chain don’t work without metrics o customer order cycle: the time when customer orders till it gets delivered o inventory turnover: number of times an inventory turns over in an organization. Metrics that’s used a lot in supply chain. The higher this number the better because it means you’re not holding inventory for a long time.
7 principles of SCM o number 7 most important o if you’re not doing effective measurements, there Is no way for you to know if your supply chain management process is actually working. No matter what you do you need to track it to know how to do better.
The best practices for supply chain success o Number 4: do everything in phases, don’t do it overnight or else nobody will know what to do o Number 5: be future oriented
Key practices driving method chart: If company do all these stuff well they’re more likely to be in the top third then the bottom third
Future supply chain trends o RFID tags: you don’t need to take the plastic off the product you can just scan it and know what it is, where it’s coming from.
Clicker questions
Efficient and effective supply chain management will allow a company to do all but one of the following. Which is it? o Decrease its own power as a buyer When you develop your supply chain management system, you will need to consider the 4 primary drivers supply chain management. What are they? o Visibility, consumer behavior, competition, and speed In order to ensure that your company tracks and analyzes the movement of materiasl and products so that your materials and goods are delivered at the right time, to the right place, and at the lowest cost, you need. o Transportation planning system As a supply chain manager, you need to be aware that the following is key to supply management success: o Orient your SCM practices to be futureoriented Demand planning is important to successful supply chain management as it gives you the ability to view everything both up and down the supply chain o Supply chain visibility Today, supply chain management systems focus on extending beyond your company’s four walls to influence all but which of the following: o Competitors As an operations manager, your goal is to create ____ product or serves that increase the difference between the cost of your inputs and the value of the price of your outputs. o Value added Value added to society
As a manager, when your are making decisions about the types of processes your company is going to use and what is needed for manufacturing plants, you are participating in ______ o Strategic planning
operations: day to day planning tactical planning: middle
no case studies for Sunday midterm midterm similar to clicker questions 50 m/c – roughly 8 questions per chapter
chapter 5 Operations management Transformation: changing input into output o Inputs: information, land, capital o Outputs: goods and services You take value as you’re moving across the chain Outputs feedback: customer satisfaction surveys, this should feed back into the control so you can make things better Don’t always think of inputs and outputs as “steel turning into car” the output can also be “educated individuals” Most products are not pure good or pure services o Automobiles are more goods and a bit of services o Teaching is more services and less goods
Typical operating management activities o Forecasting, capacity planning, scheduling etc..
Ford motor company operation strategy o What factory should produce what cars o Where we locate the factories
Highest level of operational planning: o Strategic planning o Tactical: how many workers do we need? o Operational planning: short ranged, what do we work on today? Tmr?
Strategic business unit: o Ex: Bugatti is under volkswagon
** 5 key competitive priorities that can add value for customers: o cost o quality o delivery making sure goods go out properly o flexibility o service if you can provide better service, you have better chance of selling to your customer
Operation strategy is not just the building stage! Supply chain management is part of the operational management strategy Good supply chain contains all the parties involved o Ex: best buy is updated every 30 min on the internet, Supply chain management: isn’t just the raw materials and the goods, it’s actually the informational flow as well 5% increase in profit management just by implementing good supply chain management supply chain operation o you do the packaging for the product supply chain logistic o happens when you actually deliver the products typical manufacturing supply chain for ford: o magna (raw materials), storage of raw materials, assembling, storage of new vehicles, distribution trucks, retailer, consumers typical service supply chain for itunes o artists and record labels, database, creating the files, customers Porter’s five forces: o Increase supplier power o Decrease buyer power
Clicker: How is operations management critical to scm Inc. and its customer, walmart Canada? Which of the following do not apply? c) given that scm inc. is a third party… which statement is correct? c) how does scm inc. use the five competitive priorities to help increase the value of both its goods and services and those of walmart Canada which of the following are not competitive priorities? c) information Section 5.2
supply chain has 3 main links a typical supply chain for a manufactururer
Supply chain fundamentals
source: who are you going to buy from making how are you gonna make it delivery: delivering in the shortest amount of time return: return process is part of supply chain too
Information systems’ role *** go over this part in textbook Factors driving SCM *** o Visibility: See the supply chain o Competition: if you don’t have good supply chain management in place, your competition will kill you o Speed: if you can build stuff faster, you will do better o Consumer behavior
3 factors fostering speed o make supply chain faster
supply chain don’t work without metrics o customer order cycle: the time when customer orders till it gets delivered o inventory turnover: number of times an inventory turns over in an organization. Metrics that’s used a lot in supply chain. The higher this number the better because it means you’re not holding inventory for a long time.
7 principles of SCM o number 7 most important o if you’re not doing effective measurements, there Is no way for you to know if your supply chain management process is actually working. No matter what you do you need to track it to know how to do better.
The best practices for supply chain success o Number 4: do everything in phases, don’t do it overnight or else nobody will know what to do o Number 5: be future oriented
Key practices driving method chart: If company do all these stuff well they’re more likely to be in the top third then the bottom third
Future supply chain trends o RFID tags: you don’t need to take the plastic off the product you can just scan it and know what it is, where it’s coming from.
Clicker questions
Efficient and effective supply chain management will allow a company to do all but one of the following. Which is it? o Decrease its own power as a buyer When you develop your supply chain management system, you will need to consider the 4 primary drivers supply chain management. What are they? o Visibility, consumer behavior, competition, and speed In order to ensure that your company tracks and analyzes the movement of materiasl and products so that your materials and goods are delivered at the right time, to the right place, and at the lowest cost, you need. o Transportation planning system As a supply chain manager, you need to be aware that the following is key to supply management success: o Orient your SCM practices to be futureoriented Demand planning is important to successful supply chain management as it gives you the ability to view everything both up and down the supply chain o Supply chain visibility Today, supply chain management systems focus on extending beyond your company’s four walls to influence all but which of the following: o Competitors As an operations manager, your goal is to create ____ product or serves that increase the difference between the cost of your inputs and the value of the price of your outputs. o Value added Value added to society
As a manager, when your are making decisions about the types of processes your company is going to use and what is needed for manufacturing plants, you are participating in ______ o Strategic planning
operations: day to day planning tactical planning: middle
