Production, Distribution. Business 40 Week 5 Carole K. Meagher 16 February, 2005. Agenda. Video Chapter 9 Article Analysis Chapter 15 Week 6 Lead-in. “Digital Domain”. Cluster into your project groups What are some lessons from DD that you learned from watching the video?.
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Production, Distribution Business 40 Week 5 Carole K. Meagher 16 February, 2005
Agenda • Video • Chapter 9 • Article Analysis • Chapter 15 • Week 6 Lead-in
“Digital Domain” • Cluster into your project groups • What are some lessons from DD that you learned from watching the video?
Principles of Operations • How to organize your business so that… • You know where your costs are going • Your employees know their roles and responsibilities • You can assure customer satisfaction
The Production & Operations Process Inputs Output Conversion Process Manufacturing UB’s Dry Cleaners Service
Operations Management Functions • Facility Location • Facility Layout • Quality Control • Baldridge Award • ISO 9000/ISO 140000
Manufacturing Sector Operations Management • Form Utility • Manufacturing Processes • Assembly Process • Continuous Process • Intermittent Process • Materials Requirement Planning • Enterprise Resource Planning • IT/Customer-Relationship Marketing
Just-In-Time (JIT) Inventory Internet Purchasing Flexible Manufacturing Lean Manufacturing Mass Customization Competing in Time Technology Assisted Computer-Aided Design (CAD) Computer-Aided Manufacturing (CAM) Modern Production Techniques
Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived Quality Dimensions of Quality
Quality Control Standards • Six Sigma () Quality • Statistical Quality Control (SQC) • Statistical Process Control (SPC) • Deming Cycle • Quality Function Deployment (QFD) • Baldridge Award • ISO 9000/14000/19011:2002
Principles of Productivity • Keep getting better, faster, cheaper • Only way to improve profits
Article, Groups, Break… • What is “channel conflict”? Describe how channel conflict is occurring between Mattel and toy retailers such as Toys R Us. • How is Mattel attempting to resolve or diminish this channel conflict? • What are the potential benefits to Mattel’s online strategy, including both e-commerce and Internet marketing? • What are the potential costs or risks to this online strategy?
The Four Ps of Marketing Retailers are part of the distribution channel Product Price Distribution Promotion
Web & Email • 24x7 • Visual Consumers buy what they want, when they want, wherever they want Call Center • Convenient • Immediate Brick & Mortar • Touch/Feel • Experience driven Kiosks • Visual • Convenient Customer Pervasive • Immediate • 24x7 Delivery Channels
The basic distribution channel Channel conflict at many levels…
Wal-Mart Stores Discount stores Supercenters Neighborhood Markets SAM’s CLUB segment Wal-Mart’s integrated strategy across the distribution channel: • Private label • Factory direct purchasing • Distribution centers • MacLane subsidiary
Utility Functions of Intermediaries Time Possession Form Information Service Place
Percent of B2B Commerce from Internet Source: Forrester Research Inc.
Retail Store DistributionAlso relates to product availability • Intensive • Selective • Exclusive
Non-Store Distribution • E-tailing • Telemarketing • Vending Machines, Kiosks, Carts • Direct Selling • Multilevel Marketing • Direct Marketing
Where Your Food $ Goes (fig 15.3) What are some things, as a business, you can do to improve profits?
It isn’t secure It will jeopardize my privacy Usually must pay shipping charges Not enough selection Can’t touch/try things first No satisfaction guarantee Returns are a hassle Won’t arrive on time Hard to find things online Enjoy getting out of house to shop Why People Don’t Shop OnlineSo what is good, not good, to sell online? Source: blink, www.earthlink.net/blink
Logistics • Physical Distribution • Inbound • Materials • Outbound • Reverse • Information
Week 6 Lead-in • Production and Distribution • Chapters 9, 15 • Weekly assignment… the usual • If you are not yet on a group, get into one!