1. Introduction to Operations and Supply Chain Management
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

2. Introduction Why study Operations and Supply Chain Management?
Operations Management
Supply Chain Management
Important trends
LeapFrog case study
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

3. Focus
Key issues surrounding the design and ongoing management of these areas
Common tools and techniques
Analytical skills (both qualitative and quantitative)
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

4. Why Study Operations and Supply Chain Management?
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

5. Three Basic Truths Pervasiveness Interdependence
Profitability and Survival
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

6. Pervasiveness
Every organization must make a product or provide a service that someone values………….
Manufacturer.
Retailer.
Design firm.
University.
Health services.
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

7. Interdependence
Most organizations function as part of a larger supply chain
Discussion with class about what kinds of operations and suppliers are required to realize a basic product idea like a running shoe, beginning with the initial design concept.
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

8. Supply Chains
Networks of manufacturers and service providers that work together to move goods from the raw material stage through to the end user
Linked through physical, information, and monetary flows
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

9. Profitability and Survival
Organizations must carefully manage their operations and supply chains to prosper, and indeed, survive!
Shoe manufacturer:
How many shoes should we make? What mix?
What resources do we need? What will we outsource?
Location?
Key performance criteria -- Cost? Quality? Speed?
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

10. Operations Management
The planning, scheduling, and control of the activities that transform inputs into finished goods and services
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

11. Operations Function
The collection of people, technology, and systems within a company ...
… that has primary responsibility ...
… for providing the organization’s products or services.
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

12. Viewing Operations as a Transformation Process
Manufacturing operations
Inputs
Outputs
Materials
People
Equipment
Intangible needs
Information
Tangible goods
Fulfilled requests
Information
Satisfied Customers
Service operations
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

13. Manufacturing Tangible product
Key decisions driven by physical characteristics of the product:
How is the product made?
How do we store it?
How do we move it?
Etc.
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

14. Services Intangible “Product” or Service Key decisions:
Location, Exchange, Storage, Physiological, Information
Key decisions:
How much customer involvement?
How much customization?
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

15. Cross-Functional Linkages
MIS
What IT solutions
to make it all work
together?
Finance
Budgeting.
Analysis.
Funds.
Human
Resources
Skills? Training?
# of Employees?
Design
Sustainability.
Quality.
Manufacturability.
Operations
Table 1.2 on page 13 in the text for more details to support this discussion
Marketing
What products?
What volumes?
Costs? Quality?
Delivery?
Accounting
Performance measurement systems.
Planning and control.
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

16. Supply Chain Management
Active management of supply chain activities and relationships to maximize customer value and achieve a sustainable competitive advantage
Example: Buying co-ops for independent hardware dealers
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

17. Material Flows First Tier Supplier Distributor Retailer
Alcoa
Ball Corp
Anheuser-Busch
M&M
Meijer
First Tier Supplier
Distributor
Retailer
Transportation companies
Final
customers
Upstream
Downstream
Second Tier Supplier
Page 8 in the text.
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

18. Supply Chain Issues Length of the chain Complexity Stability
Physical, informational, and monetary flows
Use Dell Computer as an example for a class discussion of the possible issues.
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

19. Wal-Mart — Early 1990s
Individual stores sent sales data daily to Wal-Mart’s suppliers via satellite
Suppliers plan production and ship based on this sales data
Wal-Mart used its own dedicated fleet to ship from its warehouses to stores
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

20. Krispy-Kreme — 2004
Stores order supplies electronically from K-K’s warehouses
At the warehouse
Radio-frequency tag (RFID) technology to track the location of inventory
Results: Fast and error-free ordering
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

21. Important Trends Electronic commerce
Reduce the costs and time associated with supply chain relationships
Increasing competition and globalization
Fewer industries protected by geography
Relationship management
Competition between chains, not individual firms
Trust and coordination
Use Boeing, as an example for reducing supply chain costs and time.
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

22. LeapFrog Chapter 1 Case Study Page 17 in the text.
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield
©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield