1. Chapter 8 McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Operations Management and Supply Chain Management

2. Chapter 8 SECTION 8.1 OPERATIONS MANAGEMENT 8-3

3. Chapter 8 TRANSFORMATION PROCESSES 8-7

4. Chapter 8 VALUE-ADDED 8-9 $$$$

5. Chapter 8 OM IN BUSINESS – AIRLINE EXAMPLE Forecasting Capacity planning Scheduling 8-10

6. Chapter 8 OM IN BUSINESS – AIRLINE EXAMPLE Managing inventory Assuring quality Locating facilities 8-10

7. Chapter 8 OM STRATEGIC BUSINESS SYSTEMS Strategic planning Strategic business units (SBUs) Materials requirement planning (MRP) 8-13

8. Chapter 8 OM STRATEGIC BUSINESS SYSTEMS Tactical planning Global inventory management system 8-14

9. Chapter 8 OM STRATEGIC BUSINESS SYSTEMS Operational planning and control (OP&C) Inventory management and control system Transportation planning system Distribution management system 8-15

10. Chapter 8 COMPETITIVE OM STRATEGY 1. Cost 2. Quality 3. Delivery 4. Flexibility 5. Service 8-16

11. Chapter 8 OM AND THE SUPPLY CHAIN Supply Chain Management (SCM) 1. Supply chain strategy 2. Supply chain partner 3. Supply chain operation 4. Supply chain logistics 8-19

12. Chapter 8 OM AND THE SUPPLY CHAIN 8-21

13. Chapter 8 OM AND THE SUPPLY CHAIN Effect on Porter’s Five Forces 8-25

14. Chapter 8 SECTION 8.2 SUPPLY CHAIN FUNDAMENTALS 8-26

15. Chapter 8 SUPPLY CHAIN FUNDAMENTALS 8-30

16. Chapter 8 SUPPLY CHAIN FUNDAMENTALS 8-31

17. Chapter 8 IT’S ROLE IN THE SUPPLY CHAIN Factors Driving SCM 8-33

18. Chapter 8 VISIBILITY Supply chain visibility Bullwhip effect 8-34 http://en.wikipedia.org/wiki/File:Bulwhip_efect.jpg

19. Chapter 8 CONSUMER BEHAVIOR Companies can respond faster and more effectively to consumer demands through supply chain enhances Demand planning software 8-35

20. Chapter 8 SCP AND SCE Supply chain planning (SCP) software Supply chain execution (SCE) software 8-36

21. Chapter 8 SCP AND SCE SCP and SCE in the supply chain 8-37

22. Chapter 8 SPEED Please customers Reduce inventory and HR costs Information flows are essential 8-38

23. Chapter 8 SCM SUCCESS FACTORS 8-39 Back order Customer order promised cycle time Customer order actual cycle time Inventory replenishment cycle time Inventory turns

24. Chapter 8 SCM STRATEGIES Segment customers Customize the logistics network Listen to signals of market demand and plan accordingly Differentiate products closer to the customer Strategically manage sources of supply Develop a supply chain IT strategy Adopt performance evaluation measures 8-40

25. Chapter 8 SCM SUCCESS FACTORS 8-42

26. Chapter 8 FUTURE SUPPLY CHAIN TRENDS Fastest growing SCM components  Supply chain event management (SCEM)  Selling chain management  Collaborative engineering  Collaborative demand planning 8-44

27. Chapter 8