Introduction to Operations and Supply Lecture Note

COURSE NOTES Doing things right = Operations Doing right things = Sustainability (Management) (Leadership) Introduction to Operations & Supply Chain Management 2. Text: Chapter 1 & 2 1 Learning Highlights  Can “transformation” mean more than physical?  Which department has the biggest impact on the triple bottom line?  What are: UN SDGs? Conflict minerals? Blockchains? Hyperloops?  How could AI change supply chains?  How are Covid lessons changing global supply chain management?  How did doubling wages while shortening the week help Henry Ford?  What is more challenging: managing a manufacturing organization or a service organization?  What are the 8 “strategic priorities” that organizations compete now on?  How could we mitigate the supply chain risks of a natural disaster or a supplier strike? 2 1 Topic Summary I. II. Definition of Operations Management Why Study Operations & Supply Chain Management? A. Integration of functional areas B. The Emergence of Operations Management C. The Changing World of OSCM D. OPMA & Society III. Services & OSCM IV. OSCM Strategies V. OSCM Risk Management 3 I. Definition of Operations Management Operations & Supply Chain Management physical The design, operation, and improvement of the systems of that create and deliver goods > and services. Operations intangible Manufacturing and service processes that use an organization’s resources to transform inputs into outputs. “Source” 4 firm/business Supply Chain Management Processes that move information and material to and from the operations processes where transformation occurs. “Make” “Transformation” Physical examples: (manufacturing) a “Deliver” Simpler Physiological (healthcare) Supply chain management is the process of coordinating and managing all the steps involved in making and delivering a product, from getting raw materials to delivering the final product to customers. It ensures that everything flows smoothly and efficiently, reducing costs and improving service. 2 II. Why Study Operations Management? A. Integration of functional areas: (Inbound) Supply Chain Management (Outbound) Operations Management (Transformation Process) Suppliers Accounting Human Resources Marketing Customers Finance Info. Systems Functional Area Marketing Accounting Human Resources Finance Information Systems Integration with Operations Management Customer service of what was promised, new product introductions Recording actual costs vs. budget, product pricing, make vs. buy Hiring / layoffs, training & development programs, employee relocation Money required for inventory holdings / space, equipment payback Functionality & reporting requirements, system capacity (users / load) 5 III. Why Study Operations Management? B. The Emergence of Operations Management  Application of Operations Management to Services Clip: details of how they helped (3 min) (1:02 – 4:08) 6 3 III. Why Study Operations Management? companaent B. The Emergence of Operations Management to Increasing focus on “Triple Bottom Line”  sustainability through “Profit” people and , profit planet Overview clip “Planet” “People” Overview Clip (2:36) Tentree Dragon’s Den clip (1:42-4:13) Circular Economy? News Video (2:52) Cobalt next? Modern Slavery? 7 III. Why Study Operations Management? B. The Emergence of Operations Management  How does each “functional area” directly impact an organization’s “Triple Bottom Line” performance? Profit Operations & SCM efficiency Planet People logistics suppliers Accounting / Finance Marketing Information Systems Human Resources Conclusion: Operations and SCM has the largest direct impact ! Further viewing: 2.8 8 4