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What is Operations & Supply Chain Management?

What is Operations & Supply Chain Management?. Mellie Pullman BA 339. Where does operations management fit into a business?. How are we going to _________ the product or service? Other functional areas: Marketing Accounting Finance Human Resources Information Systems.

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What is Operations & Supply Chain Management?

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  1. What is Operations & Supply Chain Management? Mellie Pullman BA 339

  2. Where does operations management fit into a business? • How are we going to _________ the product or service? • Other functional areas: • Marketing • Accounting • Finance • Human Resources • Information Systems

  3. What is Operations Management and how does it fit into the big picture? • The operations function is that part of the organization that exists primarily to generate and produce the organization’s products or services. • OM provides a systematic way of looking at organizational processes. • Concepts and tools of OM are widely used in managing other functions of a business.

  4. Input Output Operations as a Process Transformation (Conversion) Process

  5. Conversions include: • Physical: manufacturing or haircut • Location: transportation • Exchange: retailing • Storage: warehousing • Physiological: health care • Informational: telecommunications

  6. Energy Materials Labor Goods or Services Capital Information Feedback information for control of process inputs and process technology Operations as a Process Transformation (Conversion) Process

  7. What is managed inside the box? Parts & Equipment People Processes Planning & Scheduling Plants or Facilities

  8. Breakout Moment • How do public concerns about environmental and worker welfare issues affect operations and supply chain management? • Nike • Wal-Mart • Your company • Others examples? • How does it effect inputs, outputs and transformation changes?

  9. Environmental Concerns “Volkswagen, Germany’s biggest car maker, was reported to be setting aside DM1 billion ($470m) to pay for compliance with a European directive that will come into force in 2007 forcing car makers to pay for recycling their vehicles. New cars will be required to be 85% recyclable.” --The Economist, 15 February 2001

  10. Major Decision Responsibilities of Operations (Netflix) • Process • How to produce & deliver • Quality • Criteria, measurement & process for achieving • Capacity • Physical facilities (where, size, activities) & labor (what kind, how many, when) • Inventory • What, when & how much?

  11. Key Operating Capabilities (Strategies used to compete in the market place) • Cost • Quality • Flexibility • Speed • Sustainability (values such as environmental, social practices, animal practices, and long term economic stability rather than short term profit) • Movie example

  12. Contemporary Operations & SCM Themes • Service and Manufacturing (differences and implications) • Customer-Directed Operations • Time Reduction (Lean Operations) • Integration of Operations and Other Functions • Environmental & Sustainability Concerns • Supply Chain Management • Globalization of Operations

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