14

e
Operations and
Supply Chain
Management
CHASE | SHANKAR | JACOBS

11

INTRODUCTIO
N

Chapter One
McGraw-Hill/Irwin

Copyright 2014 by The McGraw-Hill Companies, Inc. All rights reserved.

12

 LO1-1: Identify the elements of

operations and supply chain
management.
LO1-2: Know the potential career
opportunities in operations and supply
chain management.
LO1-3: Recognize the major concepts
that define the operations and supply
chain management field.
LO1-4: Evaluate the efficiency of a firm.

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights
reserved.

Learning Objectives

13

 Operations and supply chain management

involves
Product design
Purchasing
Manufacturing
Service operations
Logistics
Distribution

Success depends upon

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights
reserved.

Strategy, Processes,
and Analytics

Strategy
Processes to deliver products and services
Analytics to support the decisions needed to
manage the firm

14

 The design, operation, and

improvement of the systems that
create and delivery the firms
primary products and services
Operations and supply chain
management (OSCM) is

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights
reserved.

What Is Operations and

Supply Chain
Management?

A functional field of business

Concerned with the management of
the entire production/delivery system
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Operati
ons
Manufacturin
g and service
processes
used to
transform
resources into
products

Supply
Chain
Processes
that move
information
and material
to and from
the firm

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights
reserved.

Operations and Supply

Chain Processes

16

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights
reserved.

Process Steps for Mens

Nylon Supplex Parkas

17

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights
reserved.

Each Section of OSCM:

What Is Accomplished?

18

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights
reserved.

Operations and Supply

Chain Processes

19

 Planning processes needed to operate an

existing supply chain
Sourcing selection of suppliers that will deliver
the goods and services needed to create the
firms product
Making producing the major product or service
Delivering logistics processes such as selecting
carriers, coordinating the movement of goods and
information, and collecting payments from
customers

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights
reserved.

Process Activities

Returning receiving worn-out, excess, and/or

defective products back from customers
110

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights
reserved.

Goods versus Services

111

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights
reserved.

Careers in Operations
and Supply Chain
Management

112

Manufacturing strategy
Late
developed
1970s
Just-in-time (JIT) production
Early
pioneered by the Japanese
1980s
Mid 1980s Service quality and
productivity
Total quality
Early
Six-sigma
management (TQM) and 1990s
Quality certification
Mid 1990s quality Supply chain
programs Business process
management
Late
reengineering (BPR)
(SCM)
1990s
Electronic
Service
Early
commerce
science
2000s
Mid 2010s
Business
analytics

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights
reserved.

Historical Development of
Operations and Supply
Chain Management

113

 Coordinating relationships
between members of SC
Optimizing global network of
suppliers, producers, and
distributors
Managing customer touch points
Raising awareness of OSCM as a
competitive weapon
Sustainability and triple bottom
line

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights
reserved.

Current Issues in
OSCM

114

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights
reserved.

Efficiency,
Effectiveness, and
Value

115

 Comparison of firms is important to investors

From an operations and supply chain perspective,
the relative cost of providing a good or service is
closely related to earnings growth

Management efficiency ratios

Labor productivity
Net income per employee
Revenue (or sales) per employee

Copyright 2014 by McGraw Hill Education (India) Private Limited. All rights
reserved.

Efficiency and Wall

Street

Asset productivity

116