Operations Management &
Logistics
,Table of contents
Week 1........................................................................................................................................3
Chapter 1: Introduction...........................................................................................................3
Chapter 2: Sustainable operations and supply strategy...........................................................7
Chapter 3: Design of new products and services..................................................................10
Chapter 4: Project..................................................................................................................15
Week 2......................................................................................................................................19
Chapter 5: Capacity management.........................................................................................19
Chapter 7: Manufacturing Processes.....................................................................................25
Chapter 8: Facility planning..................................................................................................27
Week 3......................................................................................................................................31
Chapter 9: Service processes.................................................................................................31
Chapter 10: Waiting line analysis.........................................................................................34
Chapter 11: process design and analysis...............................................................................40
Week 4......................................................................................................................................44
Chapter 12: Quality Management.........................................................................................44
Chapter 13: Quality management 2.......................................................................................52
Week 5......................................................................................................................................61
Lecture 9: Lean systems........................................................................................................61
Chapter 15: Logistics, distribution and transportation..........................................................68
Week 6......................................................................................................................................72
Chapter 16: Global sourcing & procurement........................................................................72
Chapter 17: Enterprise Resource Planning Systems (ERPS) and loT...................................76
Chapter 18: Forecasting and sales.........................................................................................80
Chapter 19: Operations planning..........................................................................................82
Week 7......................................................................................................................................83
Chapter 20: Inventory Management......................................................................................83
Chapter 21: Material requirements planning.........................................................................86
,Week 1
Chapter 1: Introduction
Operations and supply chain management (OCSM) is defined as the design, operation and
improvement of the systems that create and deliver a company’s primary products and
services (value). OCSM is involved in the management of the entire system that produces a
product or provides a service. It controls all individual processes (the stuff needed for the
product, the production of the product, the
delivery of the product) as effectively as possible.
Operations
- Refer to the transformation of inputs
(material, human and asset resources) into
output (products).
- It is very much about physical products.
For services it is quite difficult – but they
are increasingly important.
1.1
Functional-based workflow in the technical system
- Products are coming in through the first, second and third workflow, and are made
into an efficient product.
- Operations involve the workflow ordering of activities to produce the product.
Therefore, we have 2 types of workflow designs:
With the functional-based workflow, you have input that goes through 3 different stages and
then forms the output. It also means for example that you switch between the making of
product A and B. For example, you start making product A, and then you switch to product B.
All of these stages are based on a function.
With the product-based workflow, product A and B are made at the same time. The operations
involve the workflow ordering of activities to produce the product, products are being made
simultaneously. This type of workflow is more efficient, because it allows you to make
products simultaneously. You don’t lose time with switching products.
, Designing and improving operations often requires changes in workflow ordering and
organizational structure.
Logistics
- Refers to the materials inputs and product outputs to be physically moved and
warehoused and stored. They need to be moved to the different work stations.
- Difference with OSCM is that logistics focuses on the physical movement.
Supply chain
- Refers to the processes that move information and material to and from firms, ranging
from raw materials to consumers.
- Taking control of the logistical processes – it is broader than the logistical process.
A supply chain may consist of multiple value chains – operations and logistics are
considered as primary activities as part of a value chain within an organization. Firms
exist to deliver value to customers. There are some primary elements/activities that can create
this value for the customers. Some examples of primary activities are inbound logistics,
operations, outbound logistics and marketing and sales. All of these elements ends in a
service.
Inbound logistics; materials are brought to the company.
Operations; the products are made.
Outbound logistics; delivering products to the customer.
Marketing and sales; creating the demand.
Service; providing the product to the customer.
The success of producing at low costs while meeting (mass) customer demand depends on:
- clever integration of a great operations-related strategy with your corporate strategy.
- the processes need to be integrated, to produce and deliver products and services.
- analytics to support the decisions needed to manage the firm and to make the correct
decisions. In order to optimize these decisions, you need information that comes from
data.
First you need to determine the strategy of the firm, to see what kind of products will meet the
customers’ needs. If you want a low cost product, you produce a mass product and then you
need to make a strategy that fits. How to produce at low cost?
- Integrate all the strategies with the corporate strategy.
- Make sure that the processes are integrated.
- Use the analytics to improve and optimize our operations.
The main focus needs to be on the integration between these 3.
The design of transformation processes is guided by basic principles:
- How different types of processes are organized (workflow of activities).
Logistics
,Table of contents
Week 1........................................................................................................................................3
Chapter 1: Introduction...........................................................................................................3
Chapter 2: Sustainable operations and supply strategy...........................................................7
Chapter 3: Design of new products and services..................................................................10
Chapter 4: Project..................................................................................................................15
Week 2......................................................................................................................................19
Chapter 5: Capacity management.........................................................................................19
Chapter 7: Manufacturing Processes.....................................................................................25
Chapter 8: Facility planning..................................................................................................27
Week 3......................................................................................................................................31
Chapter 9: Service processes.................................................................................................31
Chapter 10: Waiting line analysis.........................................................................................34
Chapter 11: process design and analysis...............................................................................40
Week 4......................................................................................................................................44
Chapter 12: Quality Management.........................................................................................44
Chapter 13: Quality management 2.......................................................................................52
Week 5......................................................................................................................................61
Lecture 9: Lean systems........................................................................................................61
Chapter 15: Logistics, distribution and transportation..........................................................68
Week 6......................................................................................................................................72
Chapter 16: Global sourcing & procurement........................................................................72
Chapter 17: Enterprise Resource Planning Systems (ERPS) and loT...................................76
Chapter 18: Forecasting and sales.........................................................................................80
Chapter 19: Operations planning..........................................................................................82
Week 7......................................................................................................................................83
Chapter 20: Inventory Management......................................................................................83
Chapter 21: Material requirements planning.........................................................................86
,Week 1
Chapter 1: Introduction
Operations and supply chain management (OCSM) is defined as the design, operation and
improvement of the systems that create and deliver a company’s primary products and
services (value). OCSM is involved in the management of the entire system that produces a
product or provides a service. It controls all individual processes (the stuff needed for the
product, the production of the product, the
delivery of the product) as effectively as possible.
Operations
- Refer to the transformation of inputs
(material, human and asset resources) into
output (products).
- It is very much about physical products.
For services it is quite difficult – but they
are increasingly important.
1.1
Functional-based workflow in the technical system
- Products are coming in through the first, second and third workflow, and are made
into an efficient product.
- Operations involve the workflow ordering of activities to produce the product.
Therefore, we have 2 types of workflow designs:
With the functional-based workflow, you have input that goes through 3 different stages and
then forms the output. It also means for example that you switch between the making of
product A and B. For example, you start making product A, and then you switch to product B.
All of these stages are based on a function.
With the product-based workflow, product A and B are made at the same time. The operations
involve the workflow ordering of activities to produce the product, products are being made
simultaneously. This type of workflow is more efficient, because it allows you to make
products simultaneously. You don’t lose time with switching products.
, Designing and improving operations often requires changes in workflow ordering and
organizational structure.
Logistics
- Refers to the materials inputs and product outputs to be physically moved and
warehoused and stored. They need to be moved to the different work stations.
- Difference with OSCM is that logistics focuses on the physical movement.
Supply chain
- Refers to the processes that move information and material to and from firms, ranging
from raw materials to consumers.
- Taking control of the logistical processes – it is broader than the logistical process.
A supply chain may consist of multiple value chains – operations and logistics are
considered as primary activities as part of a value chain within an organization. Firms
exist to deliver value to customers. There are some primary elements/activities that can create
this value for the customers. Some examples of primary activities are inbound logistics,
operations, outbound logistics and marketing and sales. All of these elements ends in a
service.
Inbound logistics; materials are brought to the company.
Operations; the products are made.
Outbound logistics; delivering products to the customer.
Marketing and sales; creating the demand.
Service; providing the product to the customer.
The success of producing at low costs while meeting (mass) customer demand depends on:
- clever integration of a great operations-related strategy with your corporate strategy.
- the processes need to be integrated, to produce and deliver products and services.
- analytics to support the decisions needed to manage the firm and to make the correct
decisions. In order to optimize these decisions, you need information that comes from
data.
First you need to determine the strategy of the firm, to see what kind of products will meet the
customers’ needs. If you want a low cost product, you produce a mass product and then you
need to make a strategy that fits. How to produce at low cost?
- Integrate all the strategies with the corporate strategy.
- Make sure that the processes are integrated.
- Use the analytics to improve and optimize our operations.
The main focus needs to be on the integration between these 3.
The design of transformation processes is guided by basic principles:
- How different types of processes are organized (workflow of activities).
