Summary Operations and Supply Chain Management
Chapter 1: Introduction
Operations and Supply Chain Management (OSCM)
The design, operation, and improvement of the systems that create and deliver the firm’s primary
products and services.
Success involves the clever integration of a great operations-related strategy, processes that
deliver the products and services, and analytics that support the ongoing decisions needed to
manage them.
Think of the supply network as a pipeline through which material and information flow.
Operations – refers to manufacturing and service processes that are used to transform the
resources employed by a firm into products desired by customers.
Supply chain – refers to processes that move information and material to and from the
manufacturing and service processes of the firm.
Process – One or more activities that transform inputs into outputs.
The following describes the work involved in each type of process:
1. Planning: consists of the processes needed to operate an existing supply chain strategically.
2. Sourcing: involves the selection of suppliers that will deliver the goods and services needed to
create the firm’s product.
3. Making: where the product is produced or the service is provided.
4. Delivering: also referred to as logistic processes.
5. Returning: involves the processes for receiving worn-out, defective, and excess products back
from customers and support for customers who have problems with delivered product.
There are five essential differences between services and good, the five characteristics of services:
1. Intangible process
2. Requires some degree of interaction with the customer to be a service
3. Heterogeneous (varying day to day between the customer and the servers)
4. Perishable and time dependent
5. Specification of a services can be defined as a package of features (supporting facility,
facilitating goods, explicit service, implicit service)
The Goods-Services Continuum
Almost any product is a combination of goods and services:
Pure Goods Core goods Core services Pure services
Food products Appliances Hotels Teaching
Chemicals Data storage systems Airlines Medical advice
Book publishing Automobiles Internet providers Financial consulting
Chapter 1: Introduction
Operations and Supply Chain Management (OSCM)
The design, operation, and improvement of the systems that create and deliver the firm’s primary
products and services.
Success involves the clever integration of a great operations-related strategy, processes that
deliver the products and services, and analytics that support the ongoing decisions needed to
manage them.
Think of the supply network as a pipeline through which material and information flow.
Operations – refers to manufacturing and service processes that are used to transform the
resources employed by a firm into products desired by customers.
Supply chain – refers to processes that move information and material to and from the
manufacturing and service processes of the firm.
Process – One or more activities that transform inputs into outputs.
The following describes the work involved in each type of process:
1. Planning: consists of the processes needed to operate an existing supply chain strategically.
2. Sourcing: involves the selection of suppliers that will deliver the goods and services needed to
create the firm’s product.
3. Making: where the product is produced or the service is provided.
4. Delivering: also referred to as logistic processes.
5. Returning: involves the processes for receiving worn-out, defective, and excess products back
from customers and support for customers who have problems with delivered product.
There are five essential differences between services and good, the five characteristics of services:
1. Intangible process
2. Requires some degree of interaction with the customer to be a service
3. Heterogeneous (varying day to day between the customer and the servers)
4. Perishable and time dependent
5. Specification of a services can be defined as a package of features (supporting facility,
facilitating goods, explicit service, implicit service)
The Goods-Services Continuum
Almost any product is a combination of goods and services:
Pure Goods Core goods Core services Pure services
Food products Appliances Hotels Teaching
Chemicals Data storage systems Airlines Medical advice
Book publishing Automobiles Internet providers Financial consulting
