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Proc 5820 Chap001
Proc 5820 Chap001
McGraw-Hill/Irwin
Learning Objectives
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.
1-2
Operations and supply management (OSM): the design, operation, and improvement of the systems that create and deliver the firms primary products and services
Functional field of business Clear line management responsibilities
Concerned with the management of the entire system that produces a good or delivers a service
LO 1
1-3
LO 2
1-4
Supply refers to processes that move information and material to and from the manufacturing and service processes of the firm
LO 3
1-5
LO 1
1-6
LO 3
1-7
1. Services are intangible 2. Services requires some interaction with the customer 3. Services are inherently heterogeneous 4. Services are perishable and time dependent 5. Services are defined and evaluated as a package of features
LO 4
1-9
LO 4
1-10
Servitization Strategies
Servitization refers to a company building service activities into its product offerings for its current users
Maintenance, spare parts, training, and so on
Success starts by drawing together the service aspects of the business under one roof Servitization may not be the best approach for all companies
LO 4
1-11
LO 4
1-12
Efficiency: Doing something at the lowest possible cost Effectiveness: Doing the right things to create the most value for the company Value: quality divided by price
LO 2
1-13
LO 5
Lean manufacturing, JIT, and TQC Manufacturing strategy paradigm Service quality and productivity Total quality management (TQM) and quality certifications Business process reengineering Six-sigma quality Supply chain management Electronic commerce Service science