Chapter 13: Operations and Supply Chain Management

Strategic Intent, Business Structure, Business Strategy Execution, Operations, Business System
Business System Components
Operations Management
is all about effective design, development and management of the processes, procedures and practices embedded within an organization’s business system for the purpose of achieving its strategic intent
Process Management
is the design and development of the work flow and connectivity of the transformation requirements (processes) needed to ensure that an organization’s product’s and services are efficiently delivered to the marketplace
Supply Chain Management
the management of the interdependencies among suppliers, manufacturers and distributors. It seeks to develop the terms and conditions that will enable all parties to effectively and efficiently meet their obligations to one another due to their business relationships
Product/Service Management
refers to the variety of activities that commence with the design and development of potential new products in Research and Development, and extend to the post-purchase support of the products/services now in the hands of the customers
Value Maximization
refers to maximizing he benefits (price/quality comparison) that an individual or set of customers will realize as a result of using a product or service
Primary Activities
relate to the specific activities through which the development and transformation of a product or service occurs as it is produced and delivered to the market place
Inbound Logistics
refers to the management of supplier relationships relating to those parts and/or components, or finished products that are brought into the organization in order to produce finished products for delivery to the market place
refers to the manufacturing and/or product change processes set-up to ensure that the final product the organization is manufacturing or handling is ready for the marketplace
Outbound Logistics
refers to getting the finished product to the customer via a distribution channel that is accessible, convenient and able to maximize stockouts, and other sale impediment factors
Marketing and Sales
refers to those activities that create profile and awareness for the organization’s products, services or brands, and that benefits derived from the acquisitions and use of such products and services
Inbound Logistics, Operations, Outbound Logistics, Marketing and Sales, Customer Service
Primary Activities of the Value Chain
Customer Service
refers to the support provided to customers before, during and following the purchase process
Support Activities
are those areas within the organization that are not directly associated with the actual processes the organization use to produce products and/or deliver services but that are an integral art of the support structure that primary activities rely on to successfully execute strategy
Operations Cycle
is the alignment of the organizational tasks within an organization by its management team in order to meet the strategic outcomes defined in the organization and strategy
Process Standardization
is the design and utilization of common platforms and common task sequencing to produce/develop a variety of products or services
Process Simplification
is the design and utilization of a minimum number of tasks when developing products and/or services
Project Design Layout and Execution, Materials Management, Facility Design and Layout, Capital Asset Evaluation and Acquisition
Process Management
Project Design Layout and Execution
refers to the assessment and implementation of the tasks necessary to get the required work accomplished, and how such tasks will be grouped and sequenced to ensure that the most efficient and effective processes are utilized in the production of products and/or services
Design, Identify, Create, Execute
Pert Chart
a scheduling methodology that focuses on task sequencing and the identification of the critical path of steps that will most greatly impact the ability to compete a project, and length of time needed for competition
Gantt Chart
is a methodology used to schedule the steps association with a project and the time required to complete each step
Materials Management
refers to the management of the inputs required in order to develop the products or services that the organization is intent on delivering to the marketplace
Facility Design and Layout
refers to infrastructure layout and related facility components that will be required to house and support processes and materials used by the organization
refers to the maximum amount of product that can be produced, or services delivered given facility, equipment and process constraints
Capital Asset Evaluation and Acquisition
refers to an assessment by the operations management team of the state of current capital assets and determination as to their applicability to meeting the needs of the organization
Supply Chain planning, Supply chain operating execution, supply chain performance evaluation
Three areas of Supply Chain Management
Supply Chain Management
refers to the development of the supply chain structure and the accumulation of the necessary information needed to make effective supply chain decisions
Customers, Retailers, Distributors, Transportation and Logistics Companies, Supplies
Supply Chain Partners
Supply Chain Operating Execution
refers to the execution of the specific tasks necessary to ensure that key performance results are acheived
Supply Chain Performance Evaluation
refers to the critical outcomes that the supply chain must achieve in support of the organization’s overall operating performace
Cash Operating Cycle
refers to the amount of time it takes for an organization to recover the cash it has paid out for the development, production and distribution of products
Existing product/ service changes, new product opportunities, long-reach oppurtunities
Three areas of Product/Service Management
Market Expectations, Employee Education and Training, Process Analysis, Systematic and Fact-Based Decision Approach, Effective Communication of Strategy and Intent, Product Consistency
Quality Impact Factors
International Organization for Standardization
certification is essential first step in ensuring that they meet the expectations of their customers
Six Sigma
a methodology that focuses on the philosophy of total improvement
Total Quality Management
broad based approach to managing quality within the organization
Strong Management Support and Commitment, Well-Structured Approach and Deployment, Full-team involvement, Effective Communication of Progress and Result
Successful Quality Initiative Implementation

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