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Chapter 9

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COMM 103
Gregory Libitz

Chapter 9 Operations and Supply Chain Management Fitting it into the Big PictureOperations mgnt is all about the ability of a company to control improve its business processes and fundamentally focuses on the design and development of such processesTo be successful a business must develop and maintain efficient and effective operational processesSuccessful orgs understand the interconnectivity of strategy business structure and operationsseek to ensure that all three are integrated into the decision making processthat both the structureoperations are alignedin support of the orgs strategic intentSuccessful businesses look to establish competitive advgs enabling them to deliver their prodserv in a manner which is superior to their competition o What ultimately creates these is the ability of the orgs mgnt team to transfer such strategic intent through the decision making structure and into effective execution of operational processesBusiness System ComponentsWhen we visualize the interconnectivity of these three bus components should conclude o Strategy is what we want to accomplish o The structure should provide the controls and formal communication and responsibility framework which will guide the org as it seeks to realize its strategy o Operations are understood to be the actual processes employed which when combined with the orgs capital assets enable strategic outcomes to be actualizedThese three components result in getting the right prodserv to the right customer at the right time at the right place and at the right priceResponsibilities of Operations ManagersOperations Mgnt is all about the effective design development and mgnt of the processes procedures and practices embedded within an orgs bus system for the purpose of achieving of strategic intentIn broad terms the mandate of the operations mgnt team can be thought of as encompassing three broad categories of responsibilities following sectionsThe intent of the operations mgnt team is to design and develop such processes procedures and practices in a way which takes into consideration time requirements associated with getting prodserv to the market o Decisions need to be made relating to the qualityprice tradeoffs which are designed to support the value proposition being communicated to the targ Market Process ManagementThe design and development of the work flow and connectivity of the operational requirementsprocesses needed to ensure that an orgs prodservs are efficiently produced and effectively delivered to the marketLooks at the specific tasks which need to be accomplished by the org and orders and sequences them in a manner which results in the most effective and efficient work flowThe process developed and sequencing is assessed with respect to time quality and cost requirements and restraintsA key outcome of process mgnt decisionmaking is is the determination of how the transformation process for prodservs will be designed o It also looks at what equip and structures will be used in order to ensure the transformation maximizes efficiency and effectiveness objectives and is aligned with the orgs market position and the related communication messageSupply Chain ManagementRefers to the mgnt of the flow of materials andor products information and costs through the frontend of an orgs Value ChainIncludes interactions such as purchase of materials from suppliers and the coordination of JIT delivery practicesWould also take into consideration warehousing and distribution logistics which are required to move finished product from the manufacturingdistributing facility to its channel partners who sell the product to consumersSupply chain mgnt is all about relationship mgnt o It is the mgnt of the interdependencies which suppliers manufacturers and distributors have with each other o It also seeks to develop the terms and conditions which will enable all parties to efficiently and effectively meet their obligations to one anotherProductService ManagementRefers to the variety of activities which commence with the design and development of potential new products in RD and extend to the postpurchase support of products and services now in the hands of customersassessing cost base of various componentsIncludes supporting product modifications enhancements and other changes made throughout the lifecyclealso involves the decisions about qualityprice tradeoffsDecisions relating to functionality durability and performance are just some of the factors which need to be assessed within this area of responsibilityThese decisions will be made in cooperation with the orgs RD marketing and engineering departmentsInfo about consumer wants will be gathered prior to designing and building the productAlso takes into consideration adjustments to competitor goods
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