...Chapter 01 Operations and Supply Chain Management Learning Objectives for Chapter 1 1. Understand why it is important to study operations and supply chain management. 2. Define efficient and effective operations. 3. Categorize operations and supply chain processes. 4. Contrast differences between services and goods producing processes. 5. Identify operations and supply chain management career opportunities. 6. Describe how the field has developed over time. True / False Questions 1. Efficiency means doing the right things to create the most value for the company. True False 2. Effectiveness means doing the right things to create the most value for the company. True False 3. A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we could refer to this doctor as being efficient but not effective. True False 4. A worker can be efficient without being effective. True False 5. A process can be effective without being efficient. True False 6. Operations and supply management is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services. True False 7. The term "value" refers to the relationship between quality and the price paid by the consumer. True False 8. Attempting to balance the desire to efficiently use resources...
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...Publications Management School 1-1-2009 Commonalities and differences between service and manufacturing supply chains: Combining operations management studies with supply chain management Ming Zhou San Jose State University, ming.zhou@sjsu.edu J. Yi. Saint Joseph's University, Philadelphia, PA T. Park San Jose State University Follow this and additional works at: http://scholarworks.sjsu.edu/org_mgmt_pub Part of the Business Administration, Management, and Operations Commons, and the Organizational Behavior and Theory Commons Recommended Citation Ming Zhou, J. Yi., and T. Park. "Commonalities and differences between service and manufacturing supply chains: Combining operations management studies with supply chain management" California Journal of Operations Management (2009): 136-143. This Article is brought to you for free and open access by the Management School at SJSU ScholarWorks. It has been accepted for inclusion in Faculty Publications by an authorized administrator of SJSU ScholarWorks. For more information, please contact scholarworks@sjsu.edu. Commonalities and Differences between Service and Manufacturing Supply Chains: Combining Operations Management Studies with Supply Chain Management Ming Zhou • Taeho Park San Jose State University, San Jose, CA John Yi Saint Joseph's University, Philadelphia, PA The service sector of the US economy has been gaining importance. As the service sector evolves, the study of service supply...
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...operational management from the history of it to how it is used in business today. It also discusses some of the processes used in different aspects of operations management as well as describing what a supply chain is and how we see them represented. The information gathered to write this paper was mostly gained from the Operations Management textbook and articles found on websites. The results that the research provided was that operations management is a vital component to running a company that is offering goods or services to consumers. TABLE OF CONTENTS Introduction 4 History 4 Operations Management 5 Processes 6 Supply Chain Management 7 Operations Management Today 7 Conclusion 8 References 9 Introduction Operations management has been around for hundreds of years in one capacity or another. The value of having a good operations management plan in place is in fact invaluable. There is rarely any type of business that produces a good or service that does not have some sort of operations management plan in place. This is the only productive way to produce a quality good or service that a customer would want to purchase. It is also the only way to keep a customer coming back for more. There is a lot of history behind operations management as well as the roles of operations managers...
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...Introduction Chapter 1 introduces you to the field of operations management. It describes the nature and scope of operations management, and how operations management relates to other parts of the organization. Among the important topics it covers are a comparison of manufacturing and service operations, a brief history of operations management, supply chain management, and a list of trends in business that relate to operations. After you have read this chapter, you will have a good understanding of what the operations function of a business organization encompasses. Chapter 2 discusses operations management in a broader context, and presents the issues of competition, strategy, and productivity. After you have read Chapter 2, you will understand the importance of the operations function relative to the goals of a business organization. This chapter also describes time-based strategies, which many organizations are now adopting as they seek to become more competitive and to better serve their customers. Introduction to operations management includes two chapters: 1 2 Introduction to Operations Management, Chapter 1 Competitiveness, Strategy, and Productivity, Chapter 2 CHAPTER 1 Introduction to Operations Management CHAPTER OUTLINE Introduction, 4 Production of Goods versus Delivery of Services, 7 LEARNING OBJECTIVES After completing this chapter, you should be able to: 1 Define the term operations management. 2 Identify the three major functional areas of organizations...
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...‘logistics management’ and ‘supply chain management’ have the same meaning in operations and why logistics management might be of strategic importance to a manufacturing or service organisation. During last two decades, the importance of logistics has been noticed around the world. In global markets, the effects and further developments of logistics and supply chain management for corporate success has increased significantly that result in a large amount of companies have taken actual benefits in logistics, such as reducing costs, enhancing customers' satisfaction and increasing sales. However, some people are confused with the relationship between logistics and supply chain management, what logistics or logistics management is and what supply chain management is, weather or not that they are the same meaning in operations. Therefore, this essay will argue that logistics management and supply chain management are not exactly the same in operations because of the scope where utilized and some specific activities are similar, but some are different. In the end, this essay will also talk about the reasons for logistics management is a important strategy to manufacturing or service companies. The first argument is that they are not completely the same terms in operations because of the scope where utilized are different. Firstly, according to Murphy & Wood (2008), CSCMP states that the supply chain management includes all activities about planning and management, such as procurement...
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...Why study operations management? The study of operations management allows management to understand the design, managing, controlling, and improvement of business activities that provide details to the overall performance of products and services that are produced. Operations management is one of the three primary functions of a business. The other primary functions, noted by the text, are marketing and finance. 2. What is the difference between the terms “production management” and “operations management”? The production management has a focus on the physical goods produced. For example, a manager over production would be concerned if orders were not meeting customer’s quotas. Operations management has a focus on how goods and services are produced and delivered to customers. Operation managers will be concerned of adding customer value while decreasing waste or increasing costs. 3. What is the difference between operations management and supply chain management? Operations management is primary focused on the inputs and processes required to produce a service or product for a customer. On the other hand, managers over supply chains are tasked with the responsibility of getting the goods or materials to the place of production. A high emphasis on the supply chain managers is getting those raw materials to the operation at the precise time that the materials will be converted by the operation. If the delivery timing is off, an operation will face either...
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...and Differences between Service and Manufacturing Supply Chains: Combining Operations Management Studies with Supply Chain Management Ming Zhou • Taeho Park San Jose State University, San Jose, CA John Yi Saint Joseph's University, Philadelphia, PA The service sector of the US economy has been gaining importance. As the service sector evolves, the study of service supply chain starts to gain attention. In this study, we conduct an exploratory review on the studies of manufacturing and service supply chains. We focus on the studies that explore the differences and commonalities between manufacturing and service supply chains. We combine operations management literature with supply chain studies in order to provide an interdisciplinary framework that brings up both the operational and strategic views on the management commonalities and differences between the two types of supply chains. I. INTRODUCTION The study of services has lagged the study of manufacturing. When Fred Harvey proposed that services can be standardized and managed systematically, standardization and systematic management had been applied in the manufacturing sector by pioneers such as Eli Whitney and Frederick Taylor. The first business school course that focused on service management was not introduced until 1973 (Heineke and Davis, 2006). Despite the lag of academic attention, the service sector has been gaining importance as the US economy becomes more and more service-centric. According to the...
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...GHANA INSTITUTE OF MANAGEMENT AND PUBLIC ADMINISTRATION [GIMPA] MASTERS IN BUSINESS ADMINISTRATION COURSE NUMBER: GMBA 607 MANAGING OPERATIONS Instructor: Dr. Samuel Famiyeh Office Location: D-Block, R14 GIMPA Main Campus E-Mails: sfamiyeh@gimpa.edu.gh APPOINTMENT TIME You are encouraged to talk to me about any problem or suggestions you may have concerning the course, careers, benefits of advanced courses in operations management, or things in general. If you can’t seem to find the time to talk with me face-to-face, send an email and I will respond as quickly as possible. DESCRIPTION OF THE COURSE Operations management is an area of management concerned with overseeing, designing, controlling the process of production and redesigning business operations in the production of goods and/or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the forms of materials, labor, and energy) into outputs (in the form of goods and/or services). The course discusses the managerial processes underlying operations management in both service-providing and goods-producing organizations. Specific topics to be covered include introduction to operations management, forecasting, process design, capacity planning, facilities location and design, inventory...
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...OPERATIONS Role of operations management Strategic role of operations Operations management is an essential key business function that overlaps with the other business functions such as marketing, finance and human resources management. Strategic means ‘affecting all key business areas’; that is, the strategic role of operations management involves operations managers contributing to the strategic plan of the business. Some of the different costs in the operations function include; input costs, labour costs, processing costs, inventory costs and quality management costs. Cost leadership involves aiming to have the lowest costs or to be the most price-competitive in the market. A key aspect to cost leadership is that although trading with the lowest cost, the overall business should still be profitable. One aspect of cost leadership arises from a business creating economies of scale. Economies of scale refers to cost advantages that can be created as a result of an increase in scale of business operations. Typically the cost savings come from being able to purchase lower cost per unit and from efficiencies created through improved use of technology and machinery. Goods/services differentiation is a key strategy applied by operations managers. Product differentiation means distinguishing products in some way from its competitors. Ways a product could be differentiated include: varying the actual product features, varying product quality, varying any improved features, varying...
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...Introduction to Operations Management McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. What is operations? The part of a business organization that is responsible for producing goods or services How can we define operations management? The management of systems or processes that create goods and/or provide services Instructor Slides 1-2 Goods are physical items that include raw materials, parts, subassemblies, and final products. •Automobile •Computer •Oven •Shampoo Services are activities that provide some combination of time, location, form or psychological value. •Air travel •Education •Haircut •Legal counsel Instructor Slides 1-3 Supply Chain – a sequence of activities and organizations involved in producing and delivering a good or service Suppliers’ suppliers Direct suppliers Producer Distributor Final Customers Instructor Slides 1-4 Instructor Slides 1-5 Organization Marketing Operations Finance Instructor Slides 1-6 Value-Added Inputs •Land •Labor •Capital •Information Transformation/ Conversion Process Outputs •Goods •Services Measurement and Feedback Measurement and Feedback Control Measurement and Feedback Feedback = measurements taken at various points in the transformation process Control = The comparison of feedback against previously established standards to determine if corrective action is needed. Instructor...
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...The Supply System within the United States Navy James S. Reece Webster University Abstract This paper examines the supply system practices of the United States Navy within the context of naval wide fleet support. In today’s ever changing economy it is imperative that our national security forces stay current with practices and procedures of procurement of the finest materials needed to provide worldwide support for our nations warriors on the ground, airborne, and afloat. The supply system in general is a major player in the fight against terrorism, and national security in today’s society and has played this same critical role in many battles of the past. Without the in depth and vast support of the military supply system, we as Americans may not be walking freely as we do today. From the latest advances in weaponry to the nuts and bolts of each ship or aircraft, the naval supply system has proven to be the department responsible for delivering these vital parts to our security afloat and ashore enhancing combat capability. Throughout this paper I will give a brief history and evolution of the Navy Supply Corps, I will discuss the different aspects and missions of the Naval Supply Systems Command (NAVSUP) to include each major supporting supply department, and I will cover the detailed government contracting process that supports the mission readiness of the United States Navy. My ultimate goal for this paper is to provide a base line understanding on the naval supply...
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...“Logistics and operations management” Arguably, logistics in the recent year has extremely changed, with the adoption and growth of transport management systems, GPS, Warehouse management systems, GIS, as well as supply chain management. As a matter of fact, operations are the support of any organization, whether non-profit industries, marketing or manufacturing services. Logistics and operation management is a field that entails multidisciplinary activities, which comprises disciplines like logistics, product development, human resource management, quality management, as well as information systems. In most cases, operations in an organization go beyond design engineering, to developing quality feedback chain that is useful in delivery performance, and prediction of production. In the 21st century, where technology is the backbone of the entire organization, architectures designing information and management of supply chain in the e-business are part of the team making up operations management. The employment of ICT systems such as GIS, GPS, Transport Management Systems, and Warehousing Management Systems has influenced the supply chain and operation management. The aspects of logistics and operation management that has been influences by these changes include transportation, warehousing, as well as packaging (Blecker, Kersten, Kersten, & Flämig 2008). Conversably, the ultimate objective of logistics management in an organization is to move products and services from the supplier...
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...University Management School. MGT2005 OPERATIONS MANAGEMENT Semester 2, 2012 “You don’t have to change. . . Survival is not mandatory.” (Professor William E. Deming) Course Co-ordinator: Dr Yu Xiong Introduction to Operations Management Operations Management (OM) is a functional field of management encompassing the design, operation and improvement of the processes and systems employed in the creation and delivery of an organisation's products and services. Essentially, operations management is concerned with explaining how factories and services work. Managing operations well requires both strategic and tactical skills and is critical to every type of organization, for it is only through effective and efficient utilization of resources that an organization can be successful in the long run. A few common threads pervade the material we cover in this course: First, decision making in operations is highly context dependent. Recognising this is half the battle in managing an operation. The variety of operational contexts obscures the link between particular operational decisions and overall firm profitability. Making this link transparent is essential to making better operational decisions. Variability exists in any operation, and this variability needs to be managed Integration, both across functional areas within a firm, and across firms in the value creation and delivery network, is crucial for superior firm performance Finally, no product, service, or process...
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...Introduction Operations management can be described as the practice of managing the operating core of a company: the activities related to creation, production, distribution, as well as delivery of the products or service of the company. It focus on controlling and managing the process to manufacture and distribute goods or services, and concern about the responsibility of ensuring operations in business process are effective in the terms of meeting customers’ satisfaction, as well as efficient in terms of consuming as little resources as necessary. The definition of operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs to outputs (Jay Heizer & Barry Render, 2008). It is the function of managing the operating core of an organization: the activities associated with creation, production, distribution, and delivery of the organizations’ goods and service (Kashi Naresh Singh & Rajiy Kumar Srivastava, 2007). In this report, I would like to focus on three strategic decision areas of operations management: Quality, Supply chain management, as well as Inventory. 2 Problem Statement Tesco is one of the most successful retailer companies in the world, and Tesco’s operations strategy has contributed greatly to Tesco’s business processes. It is widely acknowledged Tesco’s operation management is effective and efficient in facilitating Tesco’s business strategy, however, how exactly Tesco’s operations management...
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...OPERATIONS MANAGEMENT AND MARKETING Operations management (OM) is the business function that plans, organizes, coordinates and controls resources needed to produce companies’ goods and services. OM is the core function of every company, small or large, providing physical good or a service, for profit or non- profit. The role of OM is to transform the company’s inputs (human resources, facilities, and materials) into outputs (goods and services a company produces). Marketing regroups activities that must be performed in order to buy, sell, transport and store a company’s goods and services into the most efficient way to satisfy customers and generate profit for the company. Today, we are market oriented so operations and marketing are mutually dependent and need to cooperate in designing the best products and services. Market orientation is first in line when a company has to define which product or service to develop by its operations. Marketing investigates what customers want and how to develop long-term relationships with them. It also assesses major trends and targets market segments where the company can succeed. At this stage, operations start to design services and goods best adapted to customers’ needs. According to the company’s activity, it can use a total market approach in which it assumes everyone has the same needs and tries to fulfill those needs by standardization where operations make identical products. Another approach is asking operations to design customized...
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