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Operations As A Transformation Process
Operations As A Transformation Process
Operations as a
Transformation Process
INPUT
Material
Machines
Labor
Management
Capital
TRANSFORMATION
PROCESS
OUTPUT
Goods
Services
Division of labor
dividing a job into a series of small tasks each
performed by a different worker
Interchangeable parts
standardization of parts initially as replacement parts;
enabled mass production
Mass production
high-volume production of a standardized product for
a mass market
Lean production
adaptation of mass production that prizes quality and
flexibility
1/30/2015
Contd..
Contd..
Why need ?
Supply
Demand
1/30/2015
Further Refinement of
SCM Capabilities
SCM Formation/
Extensions
JIT, TQM, BPR,
Alliances
Inventory Management/Cost
Optimization
Traditional Mass Manufacturing
1950s
1960s
1970s
1980s
1990s
2000s
Beyond
1/30/2015
SCM Definition
Material Flow
Supplier
Source
Converter
Distributor
Retailer
Distributor
End-User
Converter
Supplier
Consumers
Value-Added Services
Funds/Demand Flow
Information Flow
Reuse/Maintenance/After Sales Service Flow
Manufacturers Distributors
Retailers
R
Distributor
Supplier
Supplier
R
R
Plant
R
Supplier
Distributor
R
R
c
u
s
t
o
m
e
r
s
1/30/2015
Components of SCM
The major components to the SCM are
Supplier Network or Supply Chain
Enterprise
Distribution Network
Customers
1/30/2015
Supplier
Raw Material
Manufacture
Manufacturer
Component
Manufacture
Distriubtor
Component
Distribution
Retailer
Customer
Sub Contractor
Manufacture
OEM
Producer
1/30/2015
Strategic Partnering
Outsourcing and Off shoring
Product Design
Information Technology
Customer Value
Smart Pricing
Supply
Supply
Supply
Both
Supply
Development
Development
Development
Supply
Both
Supply
Global Optimization
Component
Requirement
Demand Forecasting
Demand Planning
Production
Plan
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Supplier
Plant
Warehouse
Logistics
Retailer
Order Management