OML lecture notes
- Project management – want it to be a course in business administration but is
included in the oml course.
- Focus on calculation
Step plan for studying
- Study thoroughly aimed to understand rather than reproduce
- Read the chapters before the start of the lecture
- Attend the lectures and watch the knowledge clips
- Use the exercises of connect to practice and test your understanding
- Ask questions in the discussion forum on bs
- Do the assignments of the different charts in lecture 4
- Do the test exam to note that we use small parts of exercises and lecture
explanations for questions
- Go over the slides again
- Read the cases at the end of the book chapters
- Re-read the chapters and re-practice exercises shortly before the exam
There is always a chart question and a weighted distance or layout question in the exam
!They use questions from the book and connect for the exam!
Questions
Question on lecture 4 (chapter 7&8)
Is lead time: the time needed to respond to a customer order? Or is lead time the processing
time + waiting time (whole process). Because it says both in the slides.
1
,Chapter 1
Operations refer to the transformation of inputs (material, human and asset resources) into
output (goods or services)
Operations involve the workflow ordering of activities to produce the product
- Functional based workflow
- In the technical system
Logistics: the materials inputs and product outputs need to be physically moved,
warehoused, and stored
- Logistics is tightly integrated with operations.
Operations and logistics are considered primary activities as part of a value chain within an
organization.
The success of producing at low-cost while meeting (mass) customer demand depends on
clever integration of
- A great operations-related strategy
- The processes to produce and deliver goods and services
- Analytics to support the decisions needed to manage the firm
Organizational scheduling is at the core of what an organization does
The operations strategy balances production rate, workforce level and inventory on hand
- Producing to deliver and/or stock in inventory
- Selling from inventory
2
, - Let employees work overtime
- Hiring and firing employees
- Subcontract production to suppliers
- Selling ‘no’ (not yet) to customers
The design of transformation processes is guided by basic principles:
- How different types of processes are organized
- How to determine the capacity of a process
- How long it should take to make a unit
- How the quality of a process is monitored
- How information is used to make decisions
The improvement of the processes and systems that create and deliver the firm’s primary
goods and services is also part of OSCM
- Optimizing the processes of production and logistics activities
- Change of OSC strategies
- New production technologies and modes of transport
- Improvements in data analytics and how to use them in decision making
Functional-based workflow: product B after A (batch-based)
Product-based workflow: product A and B (simultaneously)
Lean manufacturing: JIT and TQM and quality certification programs
Internet of things + Big data, digitalization, artificial intelligence
From a marketing point of view, customer value is the benefits perceived by the customer
minus the costs of acquisition and use of a product.
3
, Chapter 2
Triple bottom line
- Economic prosperity
- Social responsibility
- Environmental stewardship
The operations and supply chain strategy is focused on operations effectiveness
- Operations and supply chain strategy: setting broad policies and plans for using the
resources of a firm (balancing production rate, workforce level and inventory on
hand)
- Operations effectiveness: performing activities in a manner that best implements
strategic priorities at a minimum cost
- OSC strategy must be integrated with corporate strategy (e.g. sustainability or
acquisition)
- But is also strongly related to the business strategy
Sustainable strategy is aimed at pleasing not only shareholders but also other stakeholders
- The firm’s overall strategy describes how it will create and sustain value for its
current shareholders
- Adding a sustainability requirement means meeting multiple value goals without
compromising the ability of future generations to meet their own needs
- Triple bottom line means evaluating the firm against social, economic, and
environmental criteria
- Triple bottom line is reflected in the interests of stakeholders
- Pleasing other stakeholders might in the end also please shareholders
OSC managers face the dilemma of using less energy vs renewable energy
Business strategy matters, reflecting competitive dimensions
- Price
- Quality
- Delivery speed
- Delivery reliability
- Coping with changes in demand
- Flexibility and new-product introduction speed
Other product specific criteria
- Technical liaison and support
- Meeting a launch date
- Supplier after-sale support
- Environmental impact
- Other dimensions
Dealing with these competitive decisions requires managers to make trade-offs
- Low-cost production may not match with quickly improving the product quality or
producing in a sustainable way
4
- Project management – want it to be a course in business administration but is
included in the oml course.
- Focus on calculation
Step plan for studying
- Study thoroughly aimed to understand rather than reproduce
- Read the chapters before the start of the lecture
- Attend the lectures and watch the knowledge clips
- Use the exercises of connect to practice and test your understanding
- Ask questions in the discussion forum on bs
- Do the assignments of the different charts in lecture 4
- Do the test exam to note that we use small parts of exercises and lecture
explanations for questions
- Go over the slides again
- Read the cases at the end of the book chapters
- Re-read the chapters and re-practice exercises shortly before the exam
There is always a chart question and a weighted distance or layout question in the exam
!They use questions from the book and connect for the exam!
Questions
Question on lecture 4 (chapter 7&8)
Is lead time: the time needed to respond to a customer order? Or is lead time the processing
time + waiting time (whole process). Because it says both in the slides.
1
,Chapter 1
Operations refer to the transformation of inputs (material, human and asset resources) into
output (goods or services)
Operations involve the workflow ordering of activities to produce the product
- Functional based workflow
- In the technical system
Logistics: the materials inputs and product outputs need to be physically moved,
warehoused, and stored
- Logistics is tightly integrated with operations.
Operations and logistics are considered primary activities as part of a value chain within an
organization.
The success of producing at low-cost while meeting (mass) customer demand depends on
clever integration of
- A great operations-related strategy
- The processes to produce and deliver goods and services
- Analytics to support the decisions needed to manage the firm
Organizational scheduling is at the core of what an organization does
The operations strategy balances production rate, workforce level and inventory on hand
- Producing to deliver and/or stock in inventory
- Selling from inventory
2
, - Let employees work overtime
- Hiring and firing employees
- Subcontract production to suppliers
- Selling ‘no’ (not yet) to customers
The design of transformation processes is guided by basic principles:
- How different types of processes are organized
- How to determine the capacity of a process
- How long it should take to make a unit
- How the quality of a process is monitored
- How information is used to make decisions
The improvement of the processes and systems that create and deliver the firm’s primary
goods and services is also part of OSCM
- Optimizing the processes of production and logistics activities
- Change of OSC strategies
- New production technologies and modes of transport
- Improvements in data analytics and how to use them in decision making
Functional-based workflow: product B after A (batch-based)
Product-based workflow: product A and B (simultaneously)
Lean manufacturing: JIT and TQM and quality certification programs
Internet of things + Big data, digitalization, artificial intelligence
From a marketing point of view, customer value is the benefits perceived by the customer
minus the costs of acquisition and use of a product.
3
, Chapter 2
Triple bottom line
- Economic prosperity
- Social responsibility
- Environmental stewardship
The operations and supply chain strategy is focused on operations effectiveness
- Operations and supply chain strategy: setting broad policies and plans for using the
resources of a firm (balancing production rate, workforce level and inventory on
hand)
- Operations effectiveness: performing activities in a manner that best implements
strategic priorities at a minimum cost
- OSC strategy must be integrated with corporate strategy (e.g. sustainability or
acquisition)
- But is also strongly related to the business strategy
Sustainable strategy is aimed at pleasing not only shareholders but also other stakeholders
- The firm’s overall strategy describes how it will create and sustain value for its
current shareholders
- Adding a sustainability requirement means meeting multiple value goals without
compromising the ability of future generations to meet their own needs
- Triple bottom line means evaluating the firm against social, economic, and
environmental criteria
- Triple bottom line is reflected in the interests of stakeholders
- Pleasing other stakeholders might in the end also please shareholders
OSC managers face the dilemma of using less energy vs renewable energy
Business strategy matters, reflecting competitive dimensions
- Price
- Quality
- Delivery speed
- Delivery reliability
- Coping with changes in demand
- Flexibility and new-product introduction speed
Other product specific criteria
- Technical liaison and support
- Meeting a launch date
- Supplier after-sale support
- Environmental impact
- Other dimensions
Dealing with these competitive decisions requires managers to make trade-offs
- Low-cost production may not match with quickly improving the product quality or
producing in a sustainable way
4
