Sunday, October 24, 2010

Week 9- Operations Management and Supply Chain Management

1. Define the term operations management

Operations management (OM) is the management of systems or processes that convert or transform resources into goods and services (inputs to outputs).

2. Explain operations management’s role in business

This is a wide role that works across many divisions is business such as production and marketing. It works by adding value through:

- Forecasting (supply and demand)

- Capacity panning

- Scheduling

- Managing inventory

- Assuring quality

- Motivating and training employees

- Locating facilities

3. Describe the correlation between operations management and information technology

Managers use IT to heavily influence OM decisions including:

- What: what resources will be needed and what amounts?

- When: when should the work is scheduled?

- Where: where work performed?

- How: how will the work be done?

- Who: who will perform the work?

As well as decisions related to cogs, quality, customer service and resources needed .

4. Explain supply chain management and its role in a business

Supply chain management (SCM) involves the management of information flows between and among stages in a supply chain to maximise total supply chain effectiveness and profitability. The supply chain is a network of organisations and facilities that transform raw materials into products delivered to customers. The chain includes transportation companies, ware houses and inventories and transmitting messages and information among organisations.

5. List and describe the five components of a typical supply chain



Along with the diagram above the following chain corresponds with the appropriate steps.

Supplier > Manufacturer > Distribution > Retailer > Customer

Supplier – Supplies the resources/raw materials to manufacturer

Manufacturer – Makes the product/service

Distributor – Distributes the product to the retailer/sellers

Retailer – Sells the products

Customer – User and/or consumer of the products

UPSTREAM (manufacturer) -> DOWNSTREAM (retailer)

6. Define the relationship between information technology and the supply chain.

Information technology advances in the five typical supply chain components which significantly improve companies forecasting and business operations. It also creates integrations or tight process and information linkages between functions within an organisation. It ensures good quality in the products and faster decision making .


Click on the link below to see Week 9 Slides:

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