the scope of operations and supply management (osm) operations management supply chain management 1...

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• The Scope of Operations and Supply Management (OSM) Operations Management Supply Chain Management 1 st tier suppliers “n” tier suppliers ……. Distributors Customers Logistics Strategic Sourcing Stakeholders McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved

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Page 1: The Scope of Operations and Supply Management (OSM) Operations Management Supply Chain Management 1 st tier suppliers “n” tier suppliers ……. Distributors

• The Scope of Operations and Supply Management (OSM)

OperationsManagement

Supply Chain Management

1st tiersuppliers

“n” tiersuppliers

…….Distributors Customers

LogisticsStrategicSourcing

Stakeholders

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Page 2: The Scope of Operations and Supply Management (OSM) Operations Management Supply Chain Management 1 st tier suppliers “n” tier suppliers ……. Distributors

Operations and Supply ManagementSupply Chain Processes

SourcingProcesses

ManufacturingProcesses

ServiceProcesses

DistributionProcessesLogistics

ProcessesLogisticsProcesses

Enterprise Resource Planning: Supply Chain Planning and Control Processes

OSM-2

Page 3: The Scope of Operations and Supply Management (OSM) Operations Management Supply Chain Management 1 st tier suppliers “n” tier suppliers ……. Distributors

Time Series

MarketResearch

Delphi

Type of analysis SubjectiveObjective

Regression

Forecasting-System Design Matrix: Framework Describing Forecasting Options

Historicdata

Complete

Incomplete

Collaborative

OSM-3

Page 4: The Scope of Operations and Supply Management (OSM) Operations Management Supply Chain Management 1 st tier suppliers “n” tier suppliers ……. Distributors

Make-to-order(MTO)

Assemble-to-order(ATO)

Work-in-processparts and components

FinishedgoodsSuppliers

Engineer-to-order (ETO)

Demand Management: Customer Order Decoupling Points

LeadTime

Long

Short

Volume

Low

High

Make-to-stock(MTS)

Rawmaterials

Decoupling Point

OSM-4

Page 5: The Scope of Operations and Supply Management (OSM) Operations Management Supply Chain Management 1 st tier suppliers “n” tier suppliers ……. Distributors

Reorder Point/EqualOrder Period

MaterialRequirements

PlanningRate-Based

SynchronousPlanning

Volume HighLow

ManualTwo-Bin

Inventory Control-System Design Matrix: Framework Describing Inventory Control Logic

TypeDemand

Independent

Dependent

ObsoleteInventoryRisk

High

Low

OSM-5

Page 6: The Scope of Operations and Supply Management (OSM) Operations Management Supply Chain Management 1 st tier suppliers “n” tier suppliers ……. Distributors

Mixed – Hire/Fire,Overtime,

Subcontract, etc.

Level – Overtime, Subcontract

& Undertime

Level – Inventory &Backorders

Inventory Level HighLow

Chase

Aggregate Planning (S&OP)-System Design Matrix: Framework Aggregate Planning Options

Workforcechangeflexibility

High

Low

Excess plant

capacity

High

Low

OSM-6

Page 7: The Scope of Operations and Supply Management (OSM) Operations Management Supply Chain Management 1 st tier suppliers “n” tier suppliers ……. Distributors

ResourceConstrainedProject Mgmt

Resource availability LowHigh

Critical PathMethod (CPM)

Project Management-System Matrix: Framework Describing Project Scheduling Options

Task timecertainty

High

Time-CostModel

Low

Program Evaluation and Review

Technique (PERT)

OSM-7

Page 8: The Scope of Operations and Supply Management (OSM) Operations Management Supply Chain Management 1 st tier suppliers “n” tier suppliers ……. Distributors

WorkcenterManufacturing

CellAssembly

Line ContinuousProcess

Product Volume HighLow

Project

Manufacturing Product – Process Matrix:Framework Describing Manufacturing Processes

ProductStandardization

LowOne-of-kind

HighStandardizedcommodity

product

OSM-8

Page 9: The Scope of Operations and Supply Management (OSM) Operations Management Supply Chain Management 1 st tier suppliers “n” tier suppliers ……. Distributors

Copyright © F Robert Jacobs 2007

Internet

PhoneFace-to-facetight specs

Face-to-facecustom

Degree of customer/server contact HighLow

Mail

Service-System Design Matrix:Framework Describing Service Processes

Salesopportunity

Low

High

Cost

Low

High

OSM-9

Page 10: The Scope of Operations and Supply Management (OSM) Operations Management Supply Chain Management 1 st tier suppliers “n” tier suppliers ……. Distributors

DMAICSix-sigma

Tools ControlCharts

AcceptanceSampling

ProcessDesign

Inspection

CapabilityIndex

Quality Tools Matrix

Cost ofQualityAssurance

High

Low

ProcessImprovement

ProcessMonitoring

100%Inspection

FeedbackDelayLong Short

OSM-10

Page 11: The Scope of Operations and Supply Management (OSM) Operations Management Supply Chain Management 1 st tier suppliers “n” tier suppliers ……. Distributors

Highway

AirHand

Delivery

Speed of delivery FastSlow

Water

Logistics-System Design Matrix: Framework Describing Logistics Processes

Pipeline

Volume

High

Low

VariableCost

Low

High

Rail

OSM-11

Page 12: The Scope of Operations and Supply Management (OSM) Operations Management Supply Chain Management 1 st tier suppliers “n” tier suppliers ……. Distributors

Request for BidAnd

Reverse AuctionsElectronicCatalogue

VendorManagedInventory

Transaction costs LowHigh

Request forProposal

Sourcing/Purchasing-System Design Matrix: Framework Describing Purchasing Processes

ContractDuration

Short

Long

SpotPurchase

StrategicAlliance

Specificity

Low

High

OSM-12

Page 13: The Scope of Operations and Supply Management (OSM) Operations Management Supply Chain Management 1 st tier suppliers “n” tier suppliers ……. Distributors

Zone Storageand Manual Wave

RetrievalAuto S/R

Carousel OrderSorting

Cross-Docking

Facility fixed costs HighLow

Manual Storageand Retrieval

Warehouse-System Design Matrix: Framework Describing Warehouse Processes

Flexibility

High

Low

Volume

Low

High

OSM-13