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McGraw-Hill/Irwin

Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Operations Management and Supply Chain Management

Chapter 8

SECTION 8.1 Chapter 8

OPERATIONS MANAGEMENT

8-3

TRANSFORMATION PROCESSES Chapter 8

8-7

VALUE-ADDED Chapter 8

$

$$$

8-9

OM IN BUSINESS – AIRLINE EXAMPLE Chapter 8

• Forecasting • Capacity planning • Scheduling

8-10

OM IN BUSINESS – AIRLINE EXAMPLE Chapter 8

• Managing inventory • Assuring quality • Locating facilities

8-10

OM STRATEGIC BUSINESS SYSTEMS Chapter 8

• Strategic planning • Strategic business units (SBUs)

• Materials requirement planning (MRP)

8-13

OM STRATEGIC BUSINESS SYSTEMS Chapter 8

• Tactical planning • Global inventory management system

8-14

OM STRATEGIC BUSINESS SYSTEMS Chapter 8

• Operational planning and control (OP&C) • Inventory management and control system

• Transportation planning system • Distribution management system

8-15

COMPETITIVE OM STRATEGY Chapter 8

1. Cost 2. Quality 3. Delivery

4. Flexibility 5. Service

8-16

OM AND THE SUPPLY CHAIN Chapter 8

• Supply Chain Management (SCM)

Supply chain strategy 2. Supply chain partner 3. Supply chain operation 4. Supply chain logistics 1.

8-19

OM AND THE SUPPLY CHAIN Chapter 8

8-21

OM AND THE SUPPLY CHAIN Chapter 8

• Effect on Porter’s Five Forces

8-25

SECTION 8.2 Chapter 8

SUPPLY CHAIN FUNDAMENTALS

8-26

SUPPLY CHAIN FUNDAMENTALS Chapter 8

8-30

SUPPLY CHAIN FUNDAMENTALS Chapter 8

8-31

IT’S ROLE IN THE SUPPLY CHAIN Chapter 8

Factors Driving SCM

8-33

VISIBILITY Chapter 8

• Supply chain visibility • Bullwhip effect

http://en.wikipedia.org/wiki/File:Bulwhip_efect.jpg 8-34

CONSUMER BEHAVIOR Chapter 8

• Companies can respond faster and more effectively

to consumer demands through supply chain enhances • Demand planning software

8-35

SCP AND SCE Chapter 8

• Supply chain planning (SCP) software • Supply chain execution (SCE) software

8-36

SCP AND SCE Chapter 8

• SCP and SCE in the supply chain

8-37

SPEED Chapter 8

• Please customers • Reduce inventory and HR costs • Information flows are essential

8-38

SCM SUCCESS FACTORS Chapter 8

• Back order • Customer order promised cycle time • Customer order actual cycle time

• Inventory replenishment cycle time • Inventory turns

8-39

SCM STRATEGIES Chapter 8

• Segment customers • Customize the logistics network • Listen to signals of market demand and plan • • • •

accordingly Differentiate products closer to the customer Strategically manage sources of supply Develop a supply chain IT strategy Adopt performance evaluation measures

8-40

SCM SUCCESS FACTORS Chapter 8

8-42

FUTURE SUPPLY CHAIN TRENDS Chapter 8

• Fastest growing SCM components  Supply chain event management (SCEM)  Selling chain management  Collaborative engineering  Collaborative demand planning

8-44

Chapter 8