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Managing
Operations
Across the
Supply Chain
Advance Diploma (D4)
in Foundry Engineering
February 2013
What
What is
is Operations?
Operations?
What is Operations?
a function or system that transforms inputs
into outputs of greater value. i.e. a
transformation process.
2
OM
OM is
is aa process
process oriented
oriented discipline
discipline
13
13
Transformation
Transformation process
process
Hospital process
Inputs and outputs?
4
Why
Why do
do the
the Operations
Operations
management
management and
and Supply
Supply Chain
Chain
Management
Management matter?
matter?
In early 2005, HP
New CEO search committee when Carly Fiorina
stepped down as CEO
5
Transformation
Transformation Process
Process
6
What
What is
is Operations
Operations
Management?
Management?
7
Operations
Operations Management
Management (OM)
(OM) is
is everywhere
everywhere
Construction
Schools Restaurants
Banks
Hospitality
Military
Agriculture Transportation
Sport Teams
Health Municipalities
Care
Govt
Manufacturers Services Entertainment
Retail Not-for-Profit
Organizations 18
Operations
Operations Management
Management (OM)
(OM) is
is everywhere
everywhere
Operations
Marketing
Finance and
Accounting
Human
Resources
Outside
Suppliers
9
Supply
Supply Chain
Chain Management
Management
10
Supply
Supply Chain
Chain Network
Network Example
Example
Resources and Technology Supply Chain
Financial
Underwriters
Screen Writers
Talent
Agencies
Director
Product Supply Chain
Raw Materials Chemical Dye DVD
Suppliers Manufacturer Sales/Rentals
Costume
Supplier
Props Equipment
Supplier Supplier
Tier 4 Tier 3 Tier 2 Tier 1 Echelon 1 Echelon 2
Upstream Product Supply Chain Downstream Product Supply Chain
111
Characteristics
Characteristics of
of Goods
Goods and
and Services
Services
Goods Services
Tangible Intangible
Can be inventoried Cannot be inventoried
Little customer contact Extensive customer contact
Long lead time Short lead time
Often capital-intensive Often labor intensive
Quality easily assured Quality harder to assess
Material is transformed Information or customer is
transformed
112
Value-Added
Value-Added && Product
Product Packages
Packages
13
14
Decline
Decline in
in Manufacturing
Manufacturing Jobs
Jobs
Productivity
Increasing productivity allows companies to maintain
or increase their output using fewer workers
Outsourcing
Some manufacturing work has been outsourced to
more productive companies
15
Functional
Functional activities
activities that
that connect
connect
Operations
Operations managers
managers
116
Historical
Historical events
events in
in OM
OM
17
Historical
Historical events
events in
in OM
OM
Industrial revolution (Before 1800):
Steam engine: James Watt
118
Historical
Historical events
events in
in OM
OM
mass production (1850-1890):
Emergence of local factory
Scientific management(1890-1920):
More scientific management
119
Historical
Historical events
events in
in OM
OM
Human relations and Demand growth
(1920-1960):
Hawthorne studies (Elton Mayo)
Motivation theories (Abraham Maslow and Douglas
Mcgregor)
Introduction of computer usage and quantitative
methods
Increased automation
120
Historical
Historical events
events in
in OM
OM
Global competition (1960-1980):
Just in time system
Early outsourcing
E-commerce (2000-present):
Internet revolution
121