Lgt 2106 Notes
Essay by acherry17 • March 6, 2016 • Coursework • 489 Words (2 Pages) • 1,212 Views
Lecture 1 Introduction
What’s Operation Management?
- Management of the conversion process
- Transforms inputs to outputs
- Focusing on adding value
- The study and practice of better matching supply and demand
Value Chain
- All steps an organization requires a good/ a service
- Aims: Eliminate all non-value-added steps
(Top-down Approach) Operations strategy decisions
- (long-range) Strategic: needs of customers (capacity planning)
- (medium-range) Tactical: efficient planning of resources
- (short-range) Planning and control: immediate tasks and activities
Contribution to Society
- higher standard of living: increase productivity
- better quality goods and services: competition
- concern of the environment: recycling
- improved working conditions: better job design
OM from manufacturing →services
Goods | Services |
Tangible | Intangible |
Can be inventoried | Cannot be inventoried |
Less interaction between customer & process | Direct interaction between customer & process |
Competitive Dimensions
- Price →low cost
- Quality →great product/service
- Delivery speed →make/deliver quickly
- Delivery reliability →deliver as promised
- Coping with changes in demand →change volume & variety
- Flexibility & new product introduction →quick to market
Order Qualifier
→A screening criterion
→Permits a firm’s products to be considered as possible for purchase
→a firm must “re-quality the order qualifiers” every day
e.g. automobile →a car can run
Quality standard: ISO9000, ISO14000, QS9000
Order winners
→A criterion that differentiates the products from others
→drives the customer to buy a product → Competitive Dimensions
e.g. automobile →after-sale service
environmental concern & social responsibility
→green production, emission control
Order winners
- cost/price →make/deliver cheaply
- quality → design/process→defect-free
- delivery speed →make/deliver quickly
- delivery reliability →supply the product on/before the due date
Lecture 2 Supply Chain Management
What’s Supply Chain Management?
→long term relationship (a firm and suppliers)
→to ensure the timely delivery of goods & services
→that are competitively priced
A company’s supply chain
Suppliers→company→customers
Evolution of supply chain management
- Isolating the technical core
- JIT concepts
- Using a single logistics partner
- Bringing suppliers into plant
Uncertainty →create mismatch between supply and demand
Product | Supply Process | ||
Functional | Stable demand Low profit margin | Stable | Can be produced in predicable way |
Innovative | High degree of innovation Unstable demand High profit margin | Evolving | Lacks stability in the way it is produced |
Demand Uncertainty | |||
Low | High | ||
Supply Uncertainty | Functional | Innovative | |
Low | Stable | Efficient supply chain (basic apparel) | Responsive (fashion apparel) |
High | Evolving | Risk-hedging (fresh food) | Agile (new tech) |
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