Class 5 lecture notes
no case studies for Sunday midterm
midterm similar to clicker questions
50 m/c – roughly 8 questions per chapter
Transformation: changing input into output
o Inputs: information, land, capital
o Outputs: goods and services
You take value as you’re moving across the chain
Outputs feedback: customer satisfaction surveys, this should feed back into the
control so you can make things better
Don’t always think of inputs and outputs as “steel turning into car” the output can
also be “educated individuals”
Most products are not pure good or pure services
o Automobiles are more goods and a bit of services
o Teaching is more services and less goods
Typical operating management activities
o Forecasting, capacity planning, scheduling etc..
Ford motor company operation strategy
o What factory should produce what cars
o Where we locate the factories
Highest level of operational planning:
o Strategic planning
o Tactical: how many workers do we need?
o Operational planning: short ranged, what do we work on today? Tmr?
Strategic business unit:
o Ex: Bugatti is under volkswagon
** 5 key competitive priorities that can add value for customers:
making sure goods go out properly
if you can provide better service, you have better chance of selling
to your customer Operation strategy is not just the building stage!
Supply chain management is part of the operational management strategy
Good supply chain contains all the parties involved
o Ex: best buy is updated every 30 min on the internet,
Supply chain management: isn’t just the raw materials and the goods, it’s actually
the informational flow as well
5% increase in profit management just by implementing good supply chain
supply chain operation
o you do the packaging for the product
supply chain logistic
o happens when you actually deliver the products
typical manufacturing supply chain for ford:
o magna (raw materials), storage of raw materials, assembling, storage of
new vehicles, distribution trucks, retailer, consumers
typical service supply chain for itunes
o artists and record labels, database, creating the files, customers
Porter’s five forces:
o Increase supplier power
o Decrease buyer power
How is operations management critical to scm Inc. and its customer, walmart Canada?
Which of the following do not apply?
given that scm inc. is a third party…
which statement is correct?
how does scm inc. use the five competitive priorities to help increase the value of both its
goods and services and those of walmart Canada
which of the following are not competitive priorities?
supply chain has 3 main links
a typical supply chain for a manufactururer Supply chain fundamentals
source: who are you going to buy from
making how are you gonna make it
delivery: delivering in the shortest amount of time