1. Operations & Logistics Management
Lesson 5- Internal customers and internal suppliers

2. INTERNAL CUSTOMERS & INTERNAL SUPPLIERS
The operations or production process is made up of many micro-operations.
Each of these micro-operations is responsible for achieving a specific goal or objective.

3. INTERNAL CUSTOMERS & INTERNAL SUPPLIERS

4. INTERNAL CUSTOMERS & INTERNAL SUPPLIERS

5. INTERNAL CUSTOMERS & INTERNAL SUPPLIERS
Reality:
We cannot achieve its own objectives and goals without some form of input and participation from other sections, divisions, colleagues, and micro-operations within an organisation.
Organisations make money by producing goods and services, which is dependent on successful interaction and communication between human beings.

6. INTERNAL CUSTOMERS & INTERNAL SUPPLIERS
Consider Pick ‘n Pay:
Assume you are a customer
Pick ‘n Pay’s objective is to ensure that its products ends up in your shopping cart.
For the products to make its way into your shopping cart, a number of people from different micro-enterprises have to work together!
This “working together” is referred to as internal customers and suppliers.
You are somebody’s internal customer and somebody’s internal supplier.

7. INTERNAL CUSTOMERS & INTERNAL SUPPLIERS

8. INTERNAL CUSTOMERS & INTERNAL SUPPLIERS
PROBLEM: In most organisations this inter-dependent relationship is seldom understood or considered.
Interaction and cooperation is often driven from an individual consideration of what is needed to achieve the organisation’s objectives.
As an employee, you must understand the impact of your decisions on the production process.

9. SUMMARY
IMPORTANT:
The importance of the internal supplier/ customer should never be underestimated. The best product, price & quality will not guarantee the organisation’s success.
Organisation’s success will be determined by the relationships between the various functions and people that are responsible for executing its objectives.
Failure to participate in the internal suppliers/ customer will result in failure of the organisation.
Take responsibility for your part in the relationship with your co-workers.

10. SUMMARY
IMPORTANT:
Take responsibility for your part in the relationship with your co-workers. When you interact with your co-workers as a customer, also acknowledge that you also have an input as a supplier.

11. QUESTIONS: What is a micro operation?
What is the relationship between micro operations and the concept of internal suppliers and customers?
Should the internal supplier and customer be viewed as less important than the external supplier and customer? Provide reasons for your answer.
Who is Cindy’s internal supplier(s) and what must she receive to enable her to “produce” her output.