Two main sides to business o 1 Demand Sales and Marketing responsible for forecasts affecting customer behaviors getting orders for products or services customer needs and o 2 Fulfillment Operations and Supply Chain Management responsible for making and delivering products and services taking care of customer needs Accounting is the function that coaches and keeps score for the business through profit and cost analysis The transformation process within the supply chain creates wealth This includes conversion of raw materials into saleable products and services Know that there are three elements that transfer between members of a supply chain 1 Inventory 2 Information and data and 3 cash Know the difference between the reference of upstream versus downstream in supply chain management Flows represent the direction and purposes of process sequences Supply Chain Management includes both ways up and down stream Materials product flows go downstream to consumers Cash monetary flows goes upstream to supplies Tech data schedules ideas communications information flows goes both up and downstream Upstream Suppliers Manufacturers Wholesalers Consumers downstream Upstream supply management take care of supplies and cost Downstream customer relationship management customer and customer service satisfaction ERP came about in the early 1990 s BRP early 90s and Supply Chain in the late 90s Supply Chain Management was developed formally in late 1990 s creating value for customers Operations management is managing the transformation process can be combined Ownership of the Demand Planning Process should belong to the top management of Sales and or Marketing usually at the Vice President level Careers in OSCM Operations and Supply Chain Management don t memorize them all just have a good feel for what is in that space Understand what some of the main ones are It usually includes jobs in Quality Process or Manufacturing Engineering Purchasing Materials and Inventory Planning Scheduling Production Management Logistics Warehousing etc Operations manager Supply chain manager Production analyst Schedule coordinator Industrial engineer Know that APICS is the premier professional group in the Operations and Supply Chain Management space 80 of volume is almost always 20 of the items SKU stock keeping units offered in a firm 80 of operations is planning and only 20 is execution o Mission this answers the questions what are we in business for What s important Definitions to the business o Corporate Strategy long term direction defines what the objectives for growth and sustainability in the future are requires operations 3 5 years and o Business Imperatives short list of top priority goals that must be done in next 12 months for competitive advantage involoves operations derivative of hoshin planning Hoshin planning has different levels to separate the type of work and workload o Operations objects used to meet our main goals Core competency Skills that define the business Unlikely to subcontract these operations or processes The special attributes or abilities that give an organization a competitive edge must be aligned with their strategy ex Cost strategy need agility and adaptability flexibility and speed Know the concept Order winning Attributes that differentiates a company s product versus order qualifiers Necessary attributes that allow a firm to enter into and compete in a market Quality is often the example of an order qualifier in today s markets Understand the impact of demand variation must prepare for variation in customer demand competition technology process etc on Operations Management tools are flexibility and responsiveness requires buffer inventory for responsiveness buffer capacity for agility or capacity flexibility the ability to rapidly increase or decrease product levels or the ability to shift rapidly from one product or service to another or scalability to offset variation if high levels of customer service are to be expected Capacity focus the idea that a production facility works best when it is concentrated on a limited set of production objectives Buffer inventories that are kept at the intersection of differing stages of production to maintain continuity of processing allows production to continue downstream despite upstream supply interruptions Know what the two most important metrics for operational performance are 1 Customer Service and 2 Cost Quality is a prerequisite to both of those metrics being successful Know that good management systems include 1 good process design good procedures and good practices 2 accountability to the process daily weekly and monthly performance reviews and 3 metrics results measurements of sucess These are designed to monitor various processes in the business and can be daily i e daily schedule review or weekly i e Weekly Performance Review or monthly S OP management system in this course is synonymous with accountability infrastructure management systems Also know that good process design deteriorates over time unless there are management systems accountability infrastructures in place to create process accountability S OP is a risk management process for the planning horizon of demand and fulfillment agreements Risk assessment It s the spreadsheet for review and accountability of revenue demand inventory etc It s the handshake between demand and fulfillment at the top management level Understand the main trade offs in Operations Management i e customer service and cost inventory buffer and cash capacity cushion and cost leap frogging capacity needs in large increments versus small incremental growth strategy etc See the slide with the two approaches to growth build big from the beginning or add capacity as the business grows Depends on forecast of growth Cost of over capacity Understand businesses having time based strategy but also knowing that the market need today often requires businesses to be agile Most companies are asking suppliers for shorter lead time Customers are asking for broader scope of product configurations Know what the balanced scorecard is and how it helps organizations do strategic planning don t have to memorize the details of it but should know the 4 main or major elements Financial Customer Learning and Growth and Internal Processes Balanced Scorecard a good template to use when trying to understand strategies used in case studies and reality forces us to ask the right questions Have familiarity with the simple