LOGISTIEK & SUPPLY CHAIN MANAGEMENT
1. INTRODUCTION TO OPERATIONS MANAGEMENT
1.1 Introduction (p.4)
à 3 basic functional areas of business organization.
Each link is a customer of the previous link and a supplier to the following link.
If any one of the links fails for any reason, that can interrupt the flow in the supply chain.
Value-added = the difference between the cost of inputs and the value or price of outputs.
The operations function involves the conversion of inputs into outputs.
Feedback = measurements
1
,Goods are physical items that include raw materials, parts, subassemblies, and final
products.
Services are physical items that include raw materials, parts, subassemblies, and final
products.
à they often occur jointly (as you can see on the picture)
f.e. having the oil changed in your car à service, the oil that is delivered à good.
1.2 Production of goods VS. providing services (p.8)
Operations management = managing transformation processes;
1. Material processors
- Mining
- Assembly
2. Information processors
- Accountants
- Financial analysts
3. People processors
- Hairdressers
- Dentists
We are shifting towards a knowledge economy.
Manufacturing naturally leads to innovation.
2
,Decision horizon;
1. Strategic issues
- Determining the size and location of manufacturing plants
- Deciding the structure of service
- Designing technology supply chains
2. Tactical issues
- Plant layout and structure
- Project management methods
- Equipment selection
- Replacement
3. Operational issues
- Production scheduling and control
- Inventory management
- Quality control and inspection
1.3 Why learn about operations management? (p. 10)
Finance and operations management cooperate by exchanging information and expertise;
1. Budgeting
- Budgets must be periodically prepared
2. Economic analysis of investment proposals
- Evaluation of investments requires input from both
3. Provision of funds
- Avoid cash-flow problems
The overlapping circles are showing us the numerous interactions
between the 3 basic functional areas of business organizations.
Lead time = the time between ordering a good or service and receiving it.
3
, Operations also interact with other functional areas of the organization;
1. Legal management
- Consulted on contracts with employees, customers…
2. Management information systems (MIS)
- Providing management with the information it needs
3. Accounting
- Supplies information to management on costs of labor, materials…
- Provide reports on items such as scrap, downtime and inventories
4. Personnel/human resources
- Concerned with recruitment and training of personnel, contract negotiations, wage,
salary administration and ensuring the health and safety of employees
5. Public relations
- Responsible for building and maintaining a positive public image of the organization
- Good public relations provide many potential benefits
- Instilling a positive attitude among employees
1.4 Career opportunities and professional societies (p. 12)
People skills includes political awareness:
1. Mentoring ability
2. Collaboration
3. Negotiation
4. Communication skills
Knowledge skills are necessary for:
1. Credibility and good decision making
2. Product and/or service knowledge
3. Process knowledge
4. Industry and global knowledge
5. Financial and accounting skills
6. Project management skills
4
1. INTRODUCTION TO OPERATIONS MANAGEMENT
1.1 Introduction (p.4)
à 3 basic functional areas of business organization.
Each link is a customer of the previous link and a supplier to the following link.
If any one of the links fails for any reason, that can interrupt the flow in the supply chain.
Value-added = the difference between the cost of inputs and the value or price of outputs.
The operations function involves the conversion of inputs into outputs.
Feedback = measurements
1
,Goods are physical items that include raw materials, parts, subassemblies, and final
products.
Services are physical items that include raw materials, parts, subassemblies, and final
products.
à they often occur jointly (as you can see on the picture)
f.e. having the oil changed in your car à service, the oil that is delivered à good.
1.2 Production of goods VS. providing services (p.8)
Operations management = managing transformation processes;
1. Material processors
- Mining
- Assembly
2. Information processors
- Accountants
- Financial analysts
3. People processors
- Hairdressers
- Dentists
We are shifting towards a knowledge economy.
Manufacturing naturally leads to innovation.
2
,Decision horizon;
1. Strategic issues
- Determining the size and location of manufacturing plants
- Deciding the structure of service
- Designing technology supply chains
2. Tactical issues
- Plant layout and structure
- Project management methods
- Equipment selection
- Replacement
3. Operational issues
- Production scheduling and control
- Inventory management
- Quality control and inspection
1.3 Why learn about operations management? (p. 10)
Finance and operations management cooperate by exchanging information and expertise;
1. Budgeting
- Budgets must be periodically prepared
2. Economic analysis of investment proposals
- Evaluation of investments requires input from both
3. Provision of funds
- Avoid cash-flow problems
The overlapping circles are showing us the numerous interactions
between the 3 basic functional areas of business organizations.
Lead time = the time between ordering a good or service and receiving it.
3
, Operations also interact with other functional areas of the organization;
1. Legal management
- Consulted on contracts with employees, customers…
2. Management information systems (MIS)
- Providing management with the information it needs
3. Accounting
- Supplies information to management on costs of labor, materials…
- Provide reports on items such as scrap, downtime and inventories
4. Personnel/human resources
- Concerned with recruitment and training of personnel, contract negotiations, wage,
salary administration and ensuring the health and safety of employees
5. Public relations
- Responsible for building and maintaining a positive public image of the organization
- Good public relations provide many potential benefits
- Instilling a positive attitude among employees
1.4 Career opportunities and professional societies (p. 12)
People skills includes political awareness:
1. Mentoring ability
2. Collaboration
3. Negotiation
4. Communication skills
Knowledge skills are necessary for:
1. Credibility and good decision making
2. Product and/or service knowledge
3. Process knowledge
4. Industry and global knowledge
5. Financial and accounting skills
6. Project management skills
4
