Why is operations supply chain management important to business survival In your own words what is operations supply chain management about Operations management systematic design direction and control of processes that transform inputs into services and products for internal and external customers Supply Chain Management synchronization of a firm s processes with those of its suppliers and customers to match the flow of materials services and information with customer demand Role of Operations in Organization coordination among different business functions is necessary and key to developing a common strategy 1 Financial resources and capital inputs Finance Inputs 2 Translates materials and services into inputs Operations Outputs 3 Generating sales of outputs Marketing Revenue What are key inputs into any process that produces a product or a service What is a product What is a service Can there be services without products Inputs workers managers equipment facilities materials land energy Product Service No cannot be services without products How are manufacturing and service processes different Product manufacturing process physical output can be inventoried low customer contact long response time capital intensive quality easily measured Service service process intangible output cannot be inventoried high customer contact short response time labor intensive What 4 core processes do operations supply chain managers obsess over What decisions do operations supply chain managers typically make Core Processes delivers value to external customers 1 Supplier Relationship Process process to select the suppliers of services materials and information and facilitate the flow of these into the firm 2 New Service Product Development process to design and develop new services or products from customer or market inputs customer 3 Order Fulfillment Process process to produce and deliver services or products to the external 4 Customer Relationship Process process that identifies attracts and builds relationships with external customers and facilitates the placement of orders Core competencies hard to be good at all 4 and still be competitive chose to focus on process that provides the greatest strength What is an operations strategy What is a strategy Specifies the means by which operations implements corporate strategy and helps build a customer driven firm Corporate Strategy coordinates the firms overall goals with its core processes What are core competencies and what do they include Unique resources and strengths that management considers when forming strategies 1 Workforce 2 Facilities 3 Market Financial knowledge 4 Systems and Technology have an edge over your competitors What are the four competitive priorities and competitive capabilities How are competitive priorities and competitive capabilities different Competitive priorities critical dimensions that a process or supply chain must possess to satisfy its internal or external customers may change over time Competitive capabilities cost quality time and flexibility dimensions that a process or supply chain actually possesses and is able to deliver What is an order winner What is an order qualifier Are competitive capabilities order winners or order qualifiers Order qualifier minimal level required from a set of criteria for a firm to do business in a particular market segment Order winner criterion that customers use to differentiate the services or products of one firm from those of another what makes customers choose your business over another business Competitive capabilities are order winners What the four basic process strategy decisions How are the four basic process strategy decisions defined Inter related How is a layout related to these process strategy decisions Process Strategy how to provide services or make products 1 Process Structure physical arrangement of operations created from various processes customer contact position product process position layout 2 Customer Involvement 3 Resource Flexibility products output levels duties and functions 4 Capital Intensity mix of equipment and human skills in a process All work together to get a strategy for change in order to make an effective process design Layout physical arrangement of operations created from processes and puts in a tangible form more flows across departments means more challenging layout What are the key attributes of the Product Process Matrix How do process structures in manufacturing differ along these attributes In terms of the ability to use inventory to satisfy customer orders How do process structures in manufacturing relate to competitive priorities Product Process matrix services to internal or external customers 1 Volumes depends on volume first for goods manufacturing process 2 Product Customization increased product customization means decreased volumes for steps in process 3 Process Characteristics process divergence extent to which the process is highly customizable with considerable latitude as to the execution and flow custom materials or info move in diverse ways with path of one customization crisscrossing path that the next takes Manufacturing Process Structuring 1 Job Process made to order high customizations low volumes high flexibility complex Competitive priorities quality on time delivery flexibility 2 Batch Process average volumes but too great of divergence for separate processes mostly flexible flow but some may be linear Competitive priorities quality on time delivery flexibility 3 Line Process Can be stopped high volumes standardized products low divergence less skill required Competitive Priorities low cost consistent quality delivery speed 4 Continuous Flow Process materials flow through without stopping until whole batch finished high volume high standardization rigid line flows Competitive Priorities low cost consistent quality delivery speed Production and Inventories 1 Make to order Strategy low volumes high customization high divergence job or small batch process Competitive priorities quality on time delivery flexibility 2 Assemble to Order Strategy variety and fast delivery times once order is received assembly process creates standard product and fabrication process subassemblies specifics mass customization postponement final activities are delayed until orders are received Competitive Priorities delivery speed and variety 3 Make to Stock Strategy hold in stock for immediate delivery so low delivery times high