1. MANAGEMENT
RICHARD L. DAFT

2. Managing the Value Chain, Information Technology, and E-Business
Managing the Value Chain, Information Technology, and E-Business
CHAPTER 14

3. Learning Outcomes
Define operations management and describe its application within manufacturing and service organizations.
Explain today’s partnership approach to supply chain management.
Summarize considerations in designing facilities layout.
Discuss new technologies used for manufacturing and service operations, and explain what is meant by lean manufacturing.
Explain why small inventories are preferred by most organizations and describe just-in-time inventory management.
Identify ways in which information technology has transformed the manager’s job.
Describe different types of IT systems used in today’s organizations and how they support daily operations and decision making.
Summarize the key components of e-business and explain the common e-business strategies.
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4. Which Side of Your Brain Do You Use?
Managers are inundated with data and information
Computers and the Internet have expanded the options of information
Managers choose from written reports, explicit data or visuals
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5. The Organization As a Value Chain
At the center of the transformation process is the technical core
The management of inputs to produce products and services (output)
Drive value to customers
Operations Management pertains to the day-to-day management of the technical core
Managing the physical production of goods or services
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6. The Value Chain
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7. Manufacturing vs. Service Organizations
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8. Supply Chain Management
Efficient and reliable system for distributing finished products
Managing the sequence of suppliers and purchasers
From obtaining raw materials to distributing finished goods
Use of Internet technologies
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9. Integrated Supply Chain
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10. Facilities Layout
Process Layout – similar functions are grouped together
Product Layout – assembly line, tasks are arranged according to progress
Cellular Layout – sequenced tasks are grouped into cells
Fixed-Position Layout – product remains at one location and resources are brought to it
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11. Basic Production Layouts
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12. Technology Automation
Radio-Frequency Identification (RFID) – electronic tagging to track items
Flexible Manufacturing Systems – production lines that can be adapted to produce different products
Lean Manufacturing – using highly trained employees, technology and innovative methods to cut waste and improve quality
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13. Inventory Management Inventory is expensive to carry
Inventory is expensive to carry
Unproductive asset
Dollars not tied up in inventory can be used in other areas
High levels of inventory hide business problems
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14. Just-in-Time Inventory
Designed to reduce the level of inventory and associated costs
Stockless systems, zero inventory systems, kanban systems
Suppliers deliver inventory at the exact moment needed
Reduces raw materials inventory to zero
Matching finished-goods inventory to sales demand
Reduced inventory frees capital for other uses
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15. Information Technology Has Transformed Management
Collaboration
Information technology connects people around the world
Sharing and exchanging information and ideas
Knowledge Management
Systematically gathering and organizing knowledge
Foster a culture of continuous learning and knowledge sharing
Knowledge is different than data and information, knowledge has a human factor; drawn conclusions
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16. Management Information Systems (MIS)
Computer-based system
Provides information and support for effective decision making
Decision Support Systems
Executive Information Systems
Groupware/Collaborative Work Systems
Enterprise Resource Planning (ERP) integrates business processes across the firm
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17. Basic Elements of MIS
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18. Enterprise Resource Planning Systems
Backbone of an organization’s operation
Optimizes business processes
Collects, processes, and provides information about the entire firm
Managers can analyze decisions across the organization
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19. Example of ERP Applications
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20. New Generation of Information Technology
Innovative technology on the Internet is being fueled by individuals
Blogs
Wikis
Social Networking
Peer-to-Peer File Sharing
Companies are using these tools and starting their own
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21. The Internet and E-Business
Organizations have been incorporating the Internet to expand their operations
Improve business processes
Reaching new customers
Leveraging resources
Managers must align e-Business strategies with corporate strategy
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22. Key Components of E-Business
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23. Strategies for Engaging Clicks with Bricks
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