Operations Management The planning, scheduling, and control of the activities that transform inputs into finished goods and services
Viewing Operations as a Transformation Process TransformationProcess Manufacturing operations Inputs Outputs • Materials • People • Equipment • Intangible needs • Information • Tangible goods • Fulfilled requests • Information • Satisfied Customers Service operations
Operation’s Interfaces Manufacturing Process Infrastructure MIS What IT solutions to make it all work together? Finance Budgeting. Analysis. Funds. Human Resources Skills? Training? # of Employees? Design Sustainability. Quality. Manufacturability. Operations Marketing What products? What volumes? Costs? Quality? Delivery? Accounting Performance measurement systems. Planning and control.
Supply Chain Management Active management of supply chain activities and relationships to maximize customer value and achieve a sustainable competitive advantage
Upstream Downstream Second TierSupplier First TierSupplier Distributor Retailer Final Alcoa Meijer Alcoa Ball Corp Anheuser-Busch M&M customers Transportation companies Material Flows Focal Company
Important Trends • Electronic commerce • Reduce the costs and time associated with supply chain relationships • Increasing competition & globalization • Fewer industries protected by geography • Relationship management • Competition between chains, not individual firms • Trust and coordination
Business Strategy Marketing Strategy Manufacturing Strategy Financial Strategy A Top-Down Model of Strategy Goals MissionStatement Operations Decisions ...
Order Winners and Qualifiers • Winners: • Differentiators — performance not yet duplicated by competitors • Competitive advantage — performance better than all or most of the competitors • Qualifiers • Minimum acceptable level of performance With time, Winners become Qualifiers