supply chain chapter 1
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Transcript of supply chain chapter 1
Chapter 1
Introduction to Operations and
Supply Chain Management
1Chapter Objectives
Be able to: Describe what is meant by operations management and supply chain
management, and explain why activities in these are critical to an organization’s survival.
Describe how electronic commerce, increased competition and globalization, and relationship management have brought operations and supply chain management to the forefront of managers’ attention.
Identify the major professional organizations and career opportunities in operations and supply chain management.
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1Why Study Operations and Supply Chain Management?
Every organization must make a product or provide a service that someone values.
Most organizations function as part of larger supply chains.
Organizations must carefully manage their operations and supply chains in order to prosper, and indeed, survive.
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1Why Study Operations and Supply Chain Management?
Operations Management – The planning, scheduling, and control of the activities that transform inputs into finished goods and services.
Figure 1.1
© 2013 APICS Dictionary
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1Why Study Operations and Supply Chain Management?
Supply Chain Management – The active management of supply chain activities and relationships in order to maximize customer value and achieve a sustainable competitive advantage.
Supply Chain – A network of manufacturers and service providers that work together to create products or services needed by end users. These manufacturers are linked together through physical flows, information flows, and monetary flows.
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1Why Study Operations and Supply Chain Management?
Supply Chain Terminology Upstream – Activities or firms positioned earlier in the supply chain. Downstream – Activities or firms positioned later in the supply chain. First-tier supplier – A supplier that provides products or services directly to a
firm. Second-tier supplier – A supplier that provides products or services to a firm’s
first-tier supplier.
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1Why Study Operations and Supply Chain Management?
Figure 1.2
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A Simplified View of Anheuser-Busch’s Supply Chain
1Why Study Operations and Supply Chain Management?
Supply Chain Operations Reference (SCOR) Model Planning activities, which seek to balance demand requirements against
resources and communicate these plans to the various participants. Sourcing activities, which include identifying, developing, and contracting
with suppliers and scheduling the delivery of incoming goods and services. “Make,” or production, activities, which cover the actual production of a good
or service. Delivery activities, which include everything from entering customer orders
and determining delivery dates to storing and moving goods to their final destination.
Return activities, which include the activities necessary to return and process defective or excess products or materials.
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1Why Study Operations and Supply Chain Management?
© Supply-Chain Council, 2011
Figure 1.3
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Supply Chain Operations Reference Model (SCOR) Model
1Important Trends
Electronic commerce The use of computer and telecommunications technologies to conduct
business via electronic transfer of data and documents.
Increasing competition and globalization Customer demands are changing and new competitors are entering the
markets.
Relationship management Organizations must manage the relationships with their upstream suppliers as
well as their downstream customers.
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© 2013 APICS Dictionary
1Operations and Supply Chain Management and You
Professional Organizations
APICS – Association for Operations Management
ISM – Institute for Supply Management
CSCMP – The Council of Supply Chain Management Professionals
ASQ – The American Society for Quality
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1Operations and Supply Chain Management and You
Potential Career Paths in Operations and Supply Chain Management Analyst Production Manager Service Manager Sourcing Manager Commodity Manager Supplier Development Manager International Logistics Manager Transportation Manager
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1Operations and Supply Chain Management and You
Major Operations and Supply Chain Activities Process selection Forecasting Capacity planning Inventory management Planning and control Purchasing Logistics
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Introduction to Operations and Supply Chain Management Case Study
• Supply Chain Challenges at LeapFrog
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