Slides - MGMT90032 Week 12
Slides - MGMT90032 Week 12
Slides - MGMT90032 Week 12
Topic
Transformation process...
...end-to-end supply
...within organisation
chain
What is Operations Management?
One way to understand operations is to analyse how some companies have used it to become
successful....
Sales & Marketing (Forecasts) Operating •Planned
•MRP system
Planners (AP, MS, MRP, scheduling, loading) System Models •‘Push’
System •American’
•Philosophy:
Process1 Minimize total cost
•Large MNCs
Input A1 A2 A3 An Output
RAW FINISHED
P2 PRODUCTS
MATERIALS
EOQ X EOQ
P3
MRP quantities
Inspection
STORES Transformation – How?
•QM (Six sigma, TQM)
•SCM
•Process Reengineering
Planners
System
Cn Cell1 Sales & Marketing
A3 An Customers
•Lean
•JIT
Raw •‘Pull’
A2 A1 •Japanese
Materials
EOQ = 1 •Philosophy:
Bins Minimize inventory &
total cost 7
Component suppliers •Small/medium firms
Generic competitive dimensions
• Cost leadership:
– Cost efficiency
• Differentiation:
– Quality
– Flexibility
– Delivery
• “Trade-Off” v. “Cumulative” v. “Threshold” models of
competitive strategies
Inventory in a ‘Planned’ system
Which items? How much? When?
M0 M4 M12
Aggregate Product line P
Planning
EOQ model M0 M1 M2
w1 w2 w3 w4
M3 M4 M5 M6 M12
Master Model P1
scheduling Model P2
M0 M1 M2
w1 w2 w3 w4
M3 M4 M5 M6 M12
Component P1.1
MRP Component P1.2
Component P1.3
Lean/JIT Operating Systems in Services
Example:
Sushi train restaurant
Other examples:
Car race pit stop
Budget airlines
Supermarket checkout
Hospital emergency ward
Process Layouts
Work
stations
2min 3min 1min 2min
Workers
Boss!
Supply Chain Management - Representational models
Supply chain
SS SS SS SS SS
SS SS SS SS SS
S S S FC C C
C S S C
C
S C
S
S S C C
S C C S
S S
S
C S
FC C C C
C
S S C
FC
S
S
C C
C S S S
S S C
C S C
S S S
S C S
S C C S
S
Bullwhip Effect
Occurs when slight demand variability is magnified as information moves back upstream
Seven Basic QM Tools
and Techniques
Operationalising Quality
Hierarchy….
• Inspection/checking
• Quality control
• Quality assurance
• Total Quality Management
Approaches….
• Standards-based (e.g. ISO 9000)
• Prize-criteria (e.g. ABE, MBNQA)
• Elemental (e.g. six sigma)
Some important O&PM topics not covered in the
subject to any great extent…
• Project management
• Scheduling
• Quantitative methods, Decision science
• Risk/Crisis management
Emerging Issues in OSCM
https://www.cips.org/PageFiles/138071/CIPS_Digitalisatio
n_of_Procurement_WEB.pdf
Emerging Issues in OSCM
Emerging Issues in OSCM
INTEGRATED OPERATIONS MANAGEMENT FRAMEWORK
FRAGMENTATION EVOLVING TOTAL
INTEGRATION INTEGRATION
1960s 1980s 2000s
Demand forecasting
Purchasing
Production planning Inbound logistics
Resource planning
Manufacturing inventory JIT
Warehousing & facilities ERP Supply Chain Management
Materials handling Quality
Packaging
Finished goods inventory
Distribution planning Outbound logistics
Order processing
Transportation
Customer service
Past and future trends in operations and supply chain management
The End!