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Comm 103 Chapter 9 Notes (Operations & Supply Chain Management)

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COMM 103
Gregory Libitz

Areas of Responsibility in Operations Management 1.Process management - What we want to accomplish 2.Supply chain management - Provides control, communication and responsibility framework 3.Product/service management - Processes employed Porter's Value Chain Analysis Value Chain: Primary Activities - relate to the specific activities through which the development and transformation of a product or service occurs as it is produced and delivered it the marketplace • Inbound logistics- process of preparing material needed for production • Operations- process of producing the product • Outbound logistic- process of shipping products to appropriate sites for sale • Marketing and Sales- activity of creating awareness for the products • Customer Service- providing customers support before, during and following the purchase process Value Chain: Support Activities - areas within the organization that are not directly associated with the actual processes the organization us to produce and/or deliver services but that are an integral part of the support structure the primary activities rely on to successfully execute strategy • IT department • Research, development, engineering departments • Human resource management • Finance, accounting, legal, environmental safety departments Operations Cycle - the alignment of the operational tasks within an organization by its management team in order to meet the strategic outcomes defined in the organization's business strategy. Process standardization- the design and utilization of common platforms and common task sequencing to produce/develop a variety f products or services Process Simplification - the design and utilization of a minimum number of tasks when developing products and/or services Process Management • Process design, layout, and execution - the assessment and implementation of the tasks necessary to get the required work accomplished, and how such tasks will be grouped and sequenced to ensure that the most efficient and effective processes are utilized in the production of products/services ◦ DICE ▪ DEFINE the tasks and activities required ▪ IDENTIFY the sequencing needed to maximize efficiency and effectiveness ▪ CREATE the process-layout and fine tuning ▪ EXECUTE the process (put into action) and evaluate ◦ PERT Chart - scheduling methodology that focuses on task sequencing and the identification of the critical path of steps that will most greatly impact the ability to complete a project, and the length of time needed for completion ▪ specifies the sequence and critical path of steps in a project ▪ can identify activities that will cause delay
 ◦ Gantt Chart - a methodology used to schedule the steps associated with a project and the time required to complete each step ▪ diagram of steps in project and time required for each ▪ can be used to check progress
 • Material management - the management of the inputs required I order to develop the products or services at the organization is intent on delivering to the marketplace • Facility design and layout - the infrastructure layout and related facility components that will be required to house and support the pr
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