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Effective Operations Management in Production and Distribution

This agenda discusses key principles of operations management, focusing on production and distribution strategies. Explore concepts such as quality control, inventory management, and the impact of technology in manufacturing, including Just-In-Time (JIT) practices. Emphasize the importance of understanding costs, employee roles, and ensuring customer satisfaction. Analyze case studies like Mattel's channel conflict with retailers and the evolution of e-commerce. Engage in project discussions to draw lessons that enhance business efficiency and profitability in a competitive landscape.

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Effective Operations Management in Production and Distribution

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  1. Production, Distribution Business 40 Week 5 Carole K. Meagher 16 February, 2005

  2. Agenda • Video • Chapter 9 • Article Analysis • Chapter 15 • Week 6 Lead-in

  3. “Digital Domain” • Cluster into your project groups • What are some lessons from DD that you learned from watching the video?

  4. Principles of Operations • How to organize your business so that… • You know where your costs are going • Your employees know their roles and responsibilities • You can assure customer satisfaction

  5. The Production & Operations Process Inputs Output Conversion Process Manufacturing UB’s Dry Cleaners Service

  6. Operations Management Functions • Facility Location • Facility Layout • Quality Control • Baldridge Award • ISO 9000/ISO 140000

  7. Manufacturing Sector Operations Management • Form Utility • Manufacturing Processes • Assembly Process • Continuous Process • Intermittent Process • Materials Requirement Planning • Enterprise Resource Planning • IT/Customer-Relationship Marketing

  8. Just-In-Time (JIT) Inventory Internet Purchasing Flexible Manufacturing Lean Manufacturing Mass Customization Competing in Time Technology Assisted Computer-Aided Design (CAD) Computer-Aided Manufacturing (CAM) Modern Production Techniques

  9. Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived Quality Dimensions of Quality

  10. Quality Control Standards • Six Sigma () Quality • Statistical Quality Control (SQC) • Statistical Process Control (SPC) • Deming Cycle • Quality Function Deployment (QFD) • Baldridge Award • ISO 9000/14000/19011:2002

  11. Control ProceduresPERT/CPM Charts

  12. Control ProceduresGantt Chart

  13. Principles of Productivity • Keep getting better, faster, cheaper • Only way to improve profits

  14. What’s Had The Biggest Effect on Productivity?

  15. Where did Productivity Rise?

  16. Productivity Challenge in the Automobile Industry

  17. U.S. Productivity Champions 1999-2003

  18. Article, Groups, Break… • What is “channel conflict”? Describe how channel conflict is occurring between Mattel and toy retailers such as Toys R Us. • How is Mattel attempting to resolve or diminish this channel conflict? • What are the potential benefits to Mattel’s online strategy, including both e-commerce and Internet marketing? • What are the potential costs or risks to this online strategy?

  19. The Supply Chain

  20. The Four Ps of Marketing Retailers are part of the distribution channel Product Price Distribution Promotion

  21. Web & Email • 24x7 • Visual Consumers buy what they want, when they want, wherever they want Call Center • Convenient • Immediate Brick & Mortar • Touch/Feel • Experience driven Kiosks • Visual • Convenient Customer Pervasive • Immediate • 24x7 Delivery Channels

  22. The basic distribution channel Channel conflict at many levels…

  23. Wal-Mart Stores Discount stores Supercenters Neighborhood Markets SAM’s CLUB segment Wal-Mart’s integrated strategy across the distribution channel: • Private label • Factory direct purchasing • Distribution centers • MacLane subsidiary

  24. Utility Functions of Intermediaries Time Possession Form Information Service Place

  25. Percent of B2B Commerce from Internet Source: Forrester Research Inc.

  26. Retail Store DistributionAlso relates to product availability • Intensive • Selective • Exclusive

  27. Non-Store Distribution • E-tailing • Telemarketing • Vending Machines, Kiosks, Carts • Direct Selling • Multilevel Marketing • Direct Marketing

  28. Where Your Food $ Goes (fig 15.3) What are some things, as a business, you can do to improve profits?

  29. It isn’t secure It will jeopardize my privacy Usually must pay shipping charges Not enough selection Can’t touch/try things first No satisfaction guarantee Returns are a hassle Won’t arrive on time Hard to find things online Enjoy getting out of house to shop Why People Don’t Shop OnlineSo what is good, not good, to sell online? Source: blink, www.earthlink.net/blink

  30. Logistics • Physical Distribution • Inbound • Materials • Outbound • Reverse • Information

  31. Week 6 Lead-in • Production and Distribution • Chapters 9, 15 • Weekly assignment… the usual • If you are not yet on a group, get into one!

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