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Operations Management

by: Clementina Hoeger

Operations Management MGMT 3620

Clementina Hoeger
GPA 3.58

John Dudinetz

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About this Document

John Dudinetz
Class Notes
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This 16 page Class Notes was uploaded by Clementina Hoeger on Wednesday September 23, 2015. The Class Notes belongs to MGMT 3620 at Middle Tennessee State University taught by John Dudinetz in Fall. Since its upload, it has received 66 views. For similar materials see /class/212928/mgmt-3620-middle-tennessee-state-university in Business, management at Middle Tennessee State University.


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Date Created: 09/23/15
STUDY GUIDECH 11 1 Supply Chain A sequence of organizations and THEIR that are involves in producing and delivering 1 Facilities 2 Functions 3 Activities Supply chain begins w BASIC SUPPLIERS of RAW MATERIAL and ends FINAL CUSTOMER Facilities include warehouses factories process centers distrib centers outlets 35 Functions include forecasting purchasing invent Mgmt assurance prod deliv CS 5 3 kinds of movement physical forward flow of cash backwards exchange of info both ways The strategic coordination of the supply chain for the purpose of integrating supplydemand 1 mgmt Supply Chain Management 1 People various levels of the org who are responsible for managing supplydemand both within and across biz orgs Supply Chain Managers 339 The part of supply chain with the fwd and reverse flow of goods services cash and info Logistics 9 MG MT of inboundoutbound transportation material handling warehousing inventory order fulfillment 3rd party and reverse logistics Logistics Managers 10 Every biz is least part of supply chains 1 11 and type of supply chain is determined by Manufacture or service oriented 12 Supply chains value chains 13 Supply chain has 2 components Supplydemand 14 Demand component starts ends where Starts output deliv endsfinal customer 15 Supply Startsbeg of chainends internal ops 16 The sales and distribution of the value chain Demand chain 17 Closer the org is to the customer the shorter demand and longer supply 18 Buying goodsservices instead of producing or providing them in house Outsourcing 19 The need to improve operations increasing levels of outsourcing increasing transport costs competitive pressures increasing globalization increasing e biz complexity of supply chains need to manage inventories The Need for supply chain mgmt 20 Inventory oscillations become progressively larger looking backward through the supply chain bullwhip effect 21 What does the bull effect result in shortages and increases costs affects customer service 22 Vendors monitor goods and replenish retail inventories when supplies are low Vendor managed inventory VMI 23 Customers forecasting productservice designs processing inventory mgmt purchasing supplier mgmt location decision movement of goods elements of sup chain mgmt 24 Involves the movement of goodsmaterials in a supply chain logistics 25 Incoming materials movement win facility and outgoing goods AND over seeing the 2 way flow of goods Logistics 26 The link btw and org and its suppliers purchasing 27 TO be efficient across the ENTIRE supply chain 03 of supply chain mgmt 28 Barriers 2 integration need to deal w numerous trade offs variability of demand n lead times long lead times Diff w SCM 29 Mutual trust long term relations shared info how 2 keep partners in SCM 30 Chain visibility and event mgmt 4 EFFECTIVE SCM 31 Purchasing is handled by 1 SPECIAL dept Centralized Purchasing 32 Series of steps that begin w a request for purchase and end w notification of shipment received in satis Condition Purchasing cycle 33 A tech where goods arriving 2 a warehouse are unloaded from sup s truck and loaded onto outbound trucks avoiding warehouse Cross Docking 34 Reducing 1 or more steps In a supply chain by cutting 1 or more interemed Disintermediation 35 Adds differentaing features late Delayed differentiation 36 The rate which inventory goes thro supply chain inventory velocity 37 Same but w info info velocity 38 2 or more biz orgs hat have complementary products join strategic partners 39 CPFR collab plan forecast replenish 40 A technology that uses radio waves to identify objects RFID 41 Event mgmt unplanned events Fill rate fill from stock on hand SC visibility trade partner can connect to its SC in real time 42 Screening returned goods 2 prevent incorrect acceptance gatekeeping 43 Unique 1 time operations desgned 2 accomplish Projects 44 A person who promotes supports a project Project Champion 45 Work HR comm Quality time costs what a proj manager should do 46 Definition planning execution termination proj life cycle DPET 47 A heirachracal lis t of what must be done during a proj work breakdown structure 48 Critical path method CPM is used 4 planningcoordinating large proj 49 Program eval and review tech for planningcoordin large project PERT 50 The longest path Critical path 51 Time estimates that are fairly certain Deterministic 52 Estimates that allow for variation Probabilistic 53 OPPESSIMITSTIC MOST LIKLEY TIME OP length of time under optimal cond PESS under worst cond most prob length of time 54 Shortening activity durations crash 55 Someall team members are geographically separated Virtual Proj Team 56 Activity on NODE vs Acitivity on ARROW AON vs AOA 57 The goal of waiting line mgmt MINIMIZE TOTAL COST 39 GING OPERATIONS lthe Supply Chain CHAPTER NINE Customer Management 39 921711 by m Mammal11a mquot A righs mvwd Learning Objectives 1 Describe how operations helps establish and meet commitments to customers Define elements and measurement of customer service Describe model of customer satisfaction Explain importance of commitment to customer success Describe technologies and relationships Describe customer segmentation Customer Management Intense focus on understanding and providingquot customers with producsservice they desire Customer Service Product aVailability labri Hhm 139 quot quot Service Reliability Figure 91 H Customer Service ProductAvaiIabiIity inventory available when and where desired by customer Units Lines Orders Orders Units Lines Delivered Delivered Delivered 1000 20000 5000 19500 4800 910 Unit FiII Rate of ordered units delivered 1950020000 975 Line FiII Rate order lines filled in total 48005000 96 Order FiII Rate orders shipped complete 9101000 91 Example 91 94 Lead Time Performance Lead Time time between start and end of an activity Design conceptualize design amp test Order place and schedule for production Procurement source and arrive Production start to end of production DeIivery warehousing amp transportation to customer 9 5 Lead Time Performance cont d Differing market orientations have different elements of OrdertoDelivery OTD lead time Engineer to Order ETO design and make to customer specifications Make to Order MTO make to customer demand from raw materials and components Assemble to Order ATO assemble to customer demand from generic subassemblies Make to Stock MTS build and stock in anticipation of customer demand 9 6 Lead Time Performance cont d Order Lead Time 39 Production Lead Time Fab Assy Delivery Lead Time Customer receives product 14 t lt gt 0rderto Delivery Lead Tlme FIGURE 92 Market Orientation and Order to Delivery Lead Time MTS items stocked locally Groceries MTS items stocked centrally Amazoncom ATO items Dell computers Burger King MTU items from stocked materials Custom jewelry Wendy s MTO items from stocked purchased materials House custom furniture items Space shuttle custom home Figure 92 Service Reliability amp The Perfect Order Service Reliability performance of all order related activities errorfree Example 92 If a firm has 97 reliability on four attributes the probability of a perfect order is 97x97x97x97885 The Perfect Order delivered without failure in any order attribute Complete On me Damage free Documentation correct 9 8 Limitations of Customer Service Customer Service involves specifying the firm s commitment to availability operational performance and reliability Order winners qualifiers and losers Meeting or beating competitor levels Link to competitive strategy Link performance to customer satisfaction 9 9 Customer Satisfaction Customer Satisfaction meeting or exceeding customer expectations including Reliability performance as promised Responsiveness prompt reply and resolution Access easy to use communication channels Communication proactive order notifications Credibility believable and honest Customer Satisfaction Customer Satisfaction meeting or exceeding customer expectations including Security low risk and confidential Courtesy polite friendly and respectful Competence able to perform Tangibles physical appearance Knowing the customer responsive to unique customer needs Customer Satisfaction Model Gaps Gaps occur at differences between 1 Knowledge understanding of customer needs 2 Standards internal performance and customer expectations 3 Performance standard and actual performance 4 Communication actual performance and communications about performance 5 Perception customer s view of performance and actual performance 6 Satisfaction customer s perceptions and expectations of performance mmgaamcb JUITIITCD Customer Satisfaction Model Gaps 5 Gaps Management Perceptions of Expectations Figure 93 9 13 Customer Relationship Management Customer Relationship Management CRM technology enabled data gathering about customers to develop strategic relationships High Revenue Low High Profit Figure 94 9T4


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