1. Introduction to Operations and Information Management

2. For Friday Friday recitations in KOBL 320 or KOBL 380
Section 101: 9:00 – 9:50 AM in KOBL 380 – Noah
Section 102: 10:00 – 10:50 AM in KOBL 380 – Whitney
Section 103: 11:00 – 11:50 AM in KOBL 380 – Whitney
Section 104: 12:00 – 12:50 PM in KOBL 320 – Jason
Section 105: 12:00 – 12:50 PM in KOBL 320 – Addison
Section 106: 1:00 – 1:50 PM in KOBL 320 – Vimi
Section 107: 1:00 – 1:50 PM in KOBL 320 – Chris
Section 108: 2:00 – 2:50 PM in KOBL 320 – Nhan
Section 109: 2:00 – 2:50 PM in KOBL 320 – Chris
Section 110: 3:00 – 3:50 PM in KOBL 320 – Addison
Bring your laptops or thumb drives to the remaining recitations so you can continue working with your data

3. Interim Project Deliverable Due in Recitation on Friday
For Friday
Interim Project Deliverable Due in Recitation on Friday

4. Interim Project Submission
Worth 10% of Semester Grade
External Document Requirements
Introduction
Overview of Data Used in Your Analysis
Equipment Selection

5. Interim Project Submission
Internal Document Requirements
All Process Maps
Evaluation Criteria
On CULearn – Recitation #3
Leverage your RLs

6. For Next Week
Read four articles under the Additional Required Readings/Operations Management folder on CULearn
Quiz 8 next Wednesday will cover these readings

7. Total Students = 255 Completed Quizzes = 243 Mean = 7.2
Quiz 7 Statistics
Total Students = 255 Completed Quizzes = 243 Mean = 7.2

8. Quiz 7

9. What KPI indicates that world steel makers ramped up their production too quickly in response to government stimulus programs?
Layoffs and furloughs
Falling stock price
Falling hot-rolled steel prices
Increased auto production from the Cash-for-Clunkers program
None of these
Answer: Falling hot-rolled steel prices

10. What was the major change in the way Boeing develops and builds airplanes that has led to continued delays in the 787 program?
Batch vs. process manufacturing
Less customization
Using less expensive non-union labor
Outsourcing most of the manufacturing
None of these
Answer: Outsourcing most of the manufacturing

11. What are examples of functional silos that get in the way of effective supply chain management?
Hardware/Software/Services
Sales/Manufacturing/Inventory Management
Carrying Costs/Capital Costs/Variable Costs
Federal Government/State Government/Local Government
All of these
Answer: Sales/Manufacturing/Inventory Management

12. According to the required reading, who are potentially the weak links in a company’s supply chain?
Customers
Distributors
Chief Executives
Overseas suppliers
None of these
Answer: Chief executives

13. When executed well, supply chain management can deliver which of the following benefits?
Reduced working capital
Faster inventory turns
Lower fixed costs
Greater return on assets
All of these
Answer: All of these

14. Where would an RFID implementation be most effective?
Tracking on-line financial statements
Tracking lost airline luggage
Tracking building energy usage
Tracking ships on the open ocean
Answer: Tracking lost airline luggage

15. Which of the following pairings would likely have conflicting goals regarding supply chain management?
Sales and inventory management
Manufacturing and inventory management
Retailer and consumer
New product development and purchasing
All of these
Answer: All of these

16. In addition the 787, Boeing is having difficulty delivering on the latest version of which of the following planes?
737
747
757
767
777
Answer: 747

17. What appliance manufacturer, profiled in the required readings, implemented new strategies to get the right product to the right place at the right time while keeping inventory low?
General Electric
Viking LG
Bosch
None of these
Answer: None of these

18. Why are relationships so important in effective supply chain management?
They break down functional silos
They strengthen communication barriers
They increase the ability to manage transitions
A and C only
All of these
Answer: A and C only

19. Supply Chain Part I

20. From Boeing’s 787…

21. To Topper the Trick Terrier…
Voice Recognition Requirements:
(San Francisco)
Voice Recognition Programming:
(Taiwan)
Plastic Eyes:
(Shenzhen, China)
Plastic Body: (Malaysia)
Microfiber for Coat: (Korea)
Speaker for voice:
(Dongguan, China)
Transistors:
(Shenzhen, China)
Motors for legs:
(Shaoguan, China)
IC chips: (Taiwan)
Plastic legs: (Taiwan)
Wiring: (Dongguan, China)
Packaging: (Hong Kong)

22. Supply Chain Management
Makes Business Work!
Wal-Mart, Dell, Seven-Eleven Japan, Amazon, Toyota, IBM, Apple…
Or Stumble…
Hershey’s Halloween Nightmare: New order management and shipping systems don’t start right, as Hershey can’t fulfill critical Halloween orders; $150 million in revenue lost as stock drops 30%
Cisco’s Inventory Disaster: Lack of demand and inventory visibility as market slows leads to $2.2 billion inventory write-off and stock price cut in half
Nike’s Planning System Perplexity: New planning system causes inventory and order woes, blamed for $100 revenue miss as stock loses 20%

23. What is a Supply Chain?
A supply chain consists of all stages involved, directly or indirectly, in fulfilling customer requests
The entire process from point of origin (raw materials) to
point of consumption (final products bought by customers)
A network (interdependent system) of facilities including
materials supply from suppliers
transformation of materials to (inventories of) semi-finished and finished products
distribution of finished products to customers

24. Stages of a Detergent Supply Chain
SYST 4050 Slides
Timber Company
Paper Manufacturer
Tenneco Packaging
P&G or Other Manufacturer
Wal-Mart or Third Party DC
Wal-Mart Store
Customer
Supply chain involves everybody, from the customer all the way to the last supplier
Chemical Manufacturer
Plastic Producer
Chapter 1

25. Example: Wal-Mart SYST 4050 Slides Chapter 1 Procter & Gamble
or third-party
distribution
centers
Procter & Gamble
Customers Request:
Buying detergent,
clothes, TV, …...
Wal-Mart
Stores
Da-Fa Clothing - China
SONY Factory (Malaysia)
Fabric Producer
Electronics Components Producer
Plastic Producer
Zipper Producer
Plastic Producer
Chemical Producer
Thread Producer
Chapter 1

26. Example: HP SYST 4050 Slides Chapter 1 FAT = Final assembly & test
USA DCs
Suppliers
IC Mfg
Retailer
Consumer
Europe DCs
Suppliers
PC Board
FAT
Retailer
Consumer
Asian DCs
Suppliers
Subassembly
Retailer
Consumer
Suppliers
FAT = Final assembly & test
IC Mfg = Integrated circuit manufacturing
PC Board = Printed circuit board
Chapter 1

27. Example: Dell SYST 4050 Slides
Monitors by SONY (Mexico)
Keyboards by Acer (Taiwan)
Dell Assembly Plant
Customers order
computers on Dell’s website
CPU by Intel (USA)
Other components
Dell is significantly revamping its entire supply chain strategy and, in large measure, abandoning its make-to-order model [April, 2008]
Chapter 1

28. Material/Product Flow
A Typical Supply Chain
Information Flow
Supplier
Manufacturer
Distributor
Retailer
Customer
Material/Product Flow
Value-Added Services
Funds Flow

29. Now, What is a Supply Chain
SYST 4050 Slides
Flow of products and services from
Suppliers
Raw materials manufacturers
Intermediate products manufacturers
End product manufacturers
Distributors and wholesalers
Retailers
Customer
Connected through transportation, information, and exchanges of funds
Supplier
Manufacturer
Distributor
Retailer
Customer
Chapter 1

30. Every facility that impacts costs need to be considered
Key Observations
Every facility that impacts costs need to be considered
Suppliers’ suppliers
Customers’ customers
Efficiency and cost-effectiveness throughout the system is required
System level approach